Monday, May 21, 2007
King of Prussia BID
As we get closer to the July 1 deadline for the state budget, the funding crisis becomes more of a reality. The Pennsylvania Economy League is now weighing in on their perspective of the SEPTA crisis. Later this week SEPTA will be voting on what measures they need to take to balance their budget. If approved they have created a plan that would give the legislature additional time to make a decision on their funding issues. On July 1, if approved, they will implement plan A which will raise SEPTA fares 11%. While plan A will hurt the riding public it will not be as dramatic as the proposed plan B.
Plan B would be a 24% fare increase and an across the board 20% reduction in service. This decision will come in early September if the legislature has not moved forward on balancing the budget or addressing the transit funding crisis. The Pennsylvania Economy League has reviewed the potential impacts of plan B and they are as follows:
- Cost current transit riders an additional $182 million annually
- Cost current drivers an additional $38.9 million annually
- Result in the City of Philadelphia losing 43,800 jobs and $1.67 billion in net earnings, and the five counties of Southeastern Pennsylvania losing 14,500 jobs and $868.5 million in net earnings
- Depreciate property values in Bucks, Chester, Delaware, and Montgomery Counties by 6.6 percent, a net value reduction of $4.45 billion
- Depreciate city property values by 6.5 percent, a net value reduction of $2.89 billion
- Reduce State Personal Income Tax revenues by $27 million.
Reduce City Wage Tax revenues by $60 million - Strain the ability of suburban municipalities to provide residents with core services
While this crisis is dramatic, it is avoidable if action is taken by the legislature. We hope you join us in working with the General Assembly to fund not only Transit but Highways and Bridges, and to continue moving Pennsylvania into the future.
To read the full report click here....
