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  Port Authority Board Adopts FY2011 Budget

  Port Authority's Board of Directors today adopted a $330 million operating budget for its Fiscal Year 2011 (July 1, 2010 - June 30, 2011) that projects a $47.1 million revenue shortfall.

The budget assumes the Pennsylvania Legislature will address its funding shortfall that has created the projected Port Authority deficit.

"We're not asking for a bailout—we simply want the State Legislature to adopt a measure that sustains a reliable funding source—not only for Port Authority, but for public transit statewide," said CEO Steve Bland.
 
The statewide transportation crisis affects highways, bridges and public transportation. The State transportation funding law called Act 44 will not generate enough revenue to pay for transportation programs starting this year, largely due to the failed plan to charge tolls on Interstate 80.

If the State Legislature does not resolve the statewide funding crisis, Port Authority will have to balance its budget by enacting a mix of service cuts, fare increases and hundreds of job eliminations.

Capital Budget

The Authority's Board also approved Capital Improvement Budgets for two years. The fiscal 2010-11 budget totals $181.7 million and the fiscal 2011-12 budget totals $192.1 million.

Operating and Capital Improvement budgets serve different functions.  Capital funding received from local, state and federal sources that are designated for specific projects cannot be used for operating expenses and, as such, by law are not available to offset Port Authority’s operating deficit.

The Authority has eliminated $52 million in annual expenses from its operating budget since 2006 and increased annual revenue by $14 million.

The capital budget reflects how Port Authority maintains its extensive system, including 26 miles of light rail tracks, nearly 15 miles of busways and roughly 900 vehicles. Major projects such as the North Shore Connector extension and East Busway paving are paid with capital budget dollars—not operating dollars.

Source: Port Authority

Friday, June 25, 2010