SEPTA, PAT statements regarding federal rejection of tolls for I-80

SEPTA issued the following statement: The rejection by the U.S. Department of Transportation of Pennsylvania's planned funding of highway and public transit will create a deep and long lasting effect on many major SEPTA projects.  

In the immediate future,
the rejection will jeopardize more than 20 projects worth an excess of $450
million dollars. At the top of the list is the much-anticipated $100-million
investment in a new state-of-the-art fare collection system, and another $100
million dollars for the badly needed reconstruction of the City Hall Station of
the Broad Street Line. Many of the other projects may be less visible but are
critically important, such as the replacement of electrical substations on the
Regional Rail system, which are operating well beyond their designed lifetime.

"The loss of this
funding would hobble the growth and rebuilding of the SEPTA system that our
customers deserve and expect," said SEPTA general manager, Joe Casey.
"We appreciate the efforts of Governor Rendell and state legislative
leaders who have worked tirelessly to create predictable funding for public
transportation and highways, as well."

For the immediate future,
SEPTA is projecting a $300-million Capital Budget for Fiscal Year 2011,
reflecting cuts of $110 million due to the rejection of the Commonwealth’s
funding plan in Washington. This would leave the Authority with just enough
money to pay for mandated expenses such as debt service, vehicle and infrastructure
repairs and new equipment.

This action by Washington
does not impact SEPTA’s previously announced plans for the Fiscal 2011
Operating Budget, which already proposes an average system-wide 6 percent fare
increase and no service cuts.

Pittsburgh area transit
officials also commented on the issue.

"The Port Authority of
Allegheny County is increasingly concerned about the status of the state’s Act
44 transportation law now that the tolling revenue will not be realized," said Steve
Bland, CEO.0 "As a result, Port Authority would receive roughly $25 million
less in state funding for the upcoming 2010-11 fiscal year.

"The failure to meet the
funding commitments under Act 44 would force Port Authority to consider sharp
service cuts that could isolate neighborhoods and severely compromise regional
mobility in the Pittsburgh region," he said. "We are hopeful the state acts
swiftly to address this funding shortfall so that such drastic measures are not
necessary. Decisions about how to offset any projected budget gap will be made
in the coming months as we discuss our financial issues. The Authority must
adopt operating and capital budgets by June 30."