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Port Authority Budget Likely To Include Fare Hike

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Jun 26, 2009 1:56 pm US/Eastern

Port Authority Budget Likely To Include Fare Hike

The new spending plan keeps service levels the same

The Port Authority will pursue a "modest" base fare increase to take effect January 1st, according to CEO Stephen Bland

Reporting
Jim Lokay
PITTSBURGH (KDKA) ― Service cuts? None.

Fare increase? Probably.

That's what Port Authority riders can expect from the agency's budget for fiscal year 2010.

This morning, the agency's board approved the $155 million spending plan, which will keep service levels status quo.

However, CEO Stephen Bland says the board will pursue a "modest" base fare increase in the fall to take effect on January 1, 2010.

"This budget would not require more than a 25-cent increase."

Bland says that while cost savings were achieved during the recent contentious labor talks with Amalgamated Transit Union Local 85, the increase is needed to bridge a $4 million gap left by rising operating expenses and stagnating state funding.

"We really expect no increase in those sources, so it will be an ongoing challenge and those sources make up about sixty percent of the operating budget."

The board also approved a new lease for its current Downtown headquarters at the Heinz 57 Center on Sixth Avenue.
 
The approval flies in the face of a 2007 report from state Auditor General Jack Wagner, who urged the Port Authority to return to its former headquarters in the city's Manchester section.

While the agency owns the Manchester facility, it leases space in the Heinz 57 Center. Still, Bland said the cost to renovate the building in anticipation of a move would be cost-prohibitive.

"It needs massive renovation, in addition, we would incur operating costs we don't have here, we did a very extensive analysis and what we found is that we would essentially save $10 million over the next 10 years by staying here."

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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