(The following appeared on the Philadelphia Inquirer website on March 18, 2011.)
PHILADELPHIA — Rising costs for employee benefits and diesel fuel helped push up SEPTA’s planned spending about 3.9 percent for the fiscal year that will start July 1.
But SEPTA plans no fare increases or service cuts to deal with the higher costs.
The agency’s new proposed operating budget, released Thursday, envisions spending $1.23 billion in fiscal year 2012, up from the current $1.18 billion. Its capital budget, which pays for such things as new vehicles and construction projects, is expected to be about the same as this year’s $304 million when it is released next week, chief financial officer Richard Burnfield said Thursday.
Public hearings will be held next month on both the proposed operating and capital budgets.
The operating budget assumes an increase of about 6 percent in fringe benefits such as medical insurance and pension contributions. Wages for SEPTA’s union workers are to increase 2.5 percent. Wages and benefits, the biggest cost of running SEPTA, will cost the authority $865 million next year, up about 4 percent from the current $832 million.
Costs for diesel fuel are expected to rise by more than 7 percent. SEPTA has fuel contracts that maintain the price at $2.20 a gallon through December, Burnfield said.
The full story is at www.philly.com.