METRO Magazine Logo
MenuMENU
SearchSEARCH

Dedicated state funding is critical need

CEO of Pittsburgh's Port Authority of Allegheny County weighs in on state funding issues.

by Paul Skoutelas
April 1, 2005
3 min to read


Pennsylvania is home to two of the nation’s largest transit agencies — the Southeastern Pennsylvania Transportation Authority (SEPTA) in Philadelphia and the Port Authority of Allegheny County in Pittsburgh — as well as more than 50 smaller public transportation providers in cities such as Harrisburg, Lancaster, Erie and Scranton. Like many other transit systems across the country, these agencies have been challenged with increasing costs in such areas as fuel, healthcare and pensions. In Pennsylvania, the lack of a truly predictable, dedicated and growing source of revenue for public transportation has made the annual challenge of balancing operating budgets particularly difficult and has required agencies to seek innovative ways to increase revenues and decrease costs. Winning over elected officials
For example, over the past eight years, the Port Authority has achieved more than $187 million in operating savings as a result of wage, salary and hiring freezes; the elimination of 141 jobs, including 57 administrative positions; decreased workers’ compensation costs and personal injury and damage claims; reduced inventory levels; and significant reductions in general administrative expenses, including travel and marketing. During much of this same time period, the average annual growth of the agency’s operating costs has been 1.9% — well below the rate of inflation. The Port Authority’s ability to contain its costs has been recognized in two independent audits, which have enabled the agency to secure and gain the confidence of elected officials. Historically, the state has played the largest role in funding the operations of transit agencies. The General Assembly, as part of its annual budget process, sets the levels of direct operating assistance and distributes those funds by formula. In 1991, it also established the Public Transportation Assistance Fund (PTAF), which provides the second highest source of operating assistance for transit agencies. Unfortunately, both General Operating Assistance and PTAF funding have not been able to keep pace with the inherent costs of providing public transportation in Pennsylvania. In addition, the overall downturn in the economy since 9/11 contributed to the Port Authority, SEPTA and other transit agencies having to raise fares and reduce service levels — with predictably negative results. Ridership fell, mobility was reduced and customers had to worry about the future of their transit services. A gubernatorial intervention
Showing an understanding of the problem and awareness of the serious ramifications of not properly funding transit, Gov. Edward Rendell in late February announced a plan to “flex” federal highway funds to state transit agencies through December 2006, including $68 million in the current fiscal year for the Port Authority and SEPTA. Showing their support for public transportation, the Southwestern Pennsylvania Commission and the Delaware Valley Regional Planning Commission both approved the transfer of these funds. This action forestalled fare and service changes at both agencies. It was welcome news for thousands of transit supporters, many of whom recently gathered in Harrisburg to lobby for increased funding. Clearly, public transportation has the support of the governor and many members of the General Assembly. In fact, over the past year, more and more discussion has been taking place on how to get dedicated funding for public transportation. At no other time has Pennsylvania ever been closer to the passage of such legislation. The discussion that has been percolating for years is growing in intensity, and with it so is a promising future for public transportation in one of the nation’s most transit-dependent states.

Topics:Management
Subscribe to Our Newsletter

More Management

A headshot of Inez Evans Benson
Busby Alex RomanApril 15, 2026

Inez Evans Benson on Rethinking Transit Through Customer Experience

The WSP leader discusses why agencies must look beyond satisfaction metrics and take a more holistic, community-driven approach to service.

Read More →
NJ TRANSIT's new Multilevel III commuter railcar manufactured by Alstom
Technologyby StaffApril 14, 2026

Alstom Delivers First Multilevel III NJ TRANSIT Commuter Railcar

The delivery marks the first car in a 374‑vehicle order and begins the arrival of a new generation of higher‑capacity, more reliable, and more comfortable trains for one of the country’s busiest commuter rail systems.

Read More →
New Cincinnati Metro bus stop sign with large route numbers and clear layout at a city intersection, part of a systemwide signage upgrade initiative.
Managementby News/Media ReleaseApril 13, 2026

Cincinnati Metro Begins Countywide Bus Stop Sign Upgrade

Metro launches a 24-month project to replace 3,700 bus stop signs, introducing improved visibility, QR-enabled rider info, and expanded amenities across Hamilton County.

Read More →
Ad Loading...
A BART train on the tracks.
Railby StaffApril 13, 2026

San Francisco's BART Breaks Multiple Records for Post-Pandemic Ridership in March

BART recorded 5,403,140 exits in March, making it the highest monthly ridership since the pandemic and surpassing the previous high set in October 2025 (5,346,890 exits).

Read More →
Rod Diridon Sr. speaking at a podium wearing a brown blazer.
Managementby StaffApril 13, 2026

Transit Leader Rod Diridon Sr., ‘Father of Modern Transit’ in Silicon Valley, Dies at 87

See how the longtime public servant and transportation visionary helped shape Bay Area transit systems and championed rail development nationwide.

Read More →
FlixBus vehicles in a parking garage.
ManagementApril 13, 2026

Intercity Bus Industry Outlook: A Mix of Apprehension & Optimism

Industry leaders see both promise and peril ahead as intercity bus travel rebounds, but unpredictable market forces threaten to reshape the sector.

Read More →
Ad Loading...
Ribbon cutting photo celebrating SEPTA's new Ardmore Station
Railby StaffApril 13, 2026

Philadelphia's SEPTA Celebrates New Ardmore Station

The station was rebuilt as part of SEPTA’s Station Accessibility Program, making it fully ADA accessible with new elevators, ramps, and high-level platforms.

Read More →
Passengers in crowded SEPTA station
Managementby StaffApril 10, 2026

SEPTA Releases Proposed $2.7B Fiscal Year 2027 Budget

The plan represents an increase of just 1.9% over the current year, and includes investments in new buses, more full-length fare gates, and other enhancements for customers.

Read More →
Two Metra locomotives on rail tracks.
Railby StaffApril 10, 2026

Metra Reaches New 10-Year Agreement with BNSF

The announcement highlights the long-standing partnership between the Class I railroad and the commuter rail system, dating back to Metra's creation in 1983.

Read More →
Ad Loading...
Cover Photo for Bus Tech Talk
ManagementApril 9, 2026

Bus Tech Talk: AC Transit’s Cecil Blandon on Leadership, Mentorship, and a Career in Transit

In Part 1, Blandon shares his journey from the U.S. Marines to a leadership role in public transit, along with insights on mentorship and professional growth within the industry.

Read More →