Tuesday, July 10, 2007
Good Money After Bad
The state’s budget crisis lasted one day before a tentative agreement was reached between the Governor and Legislature. One detail of the new budget that has come to light is yet another state bailout for the Port Authority. The Port Authority (PAT) was to receive an allotment of $129 million from the state—about 40 percent of the transit authority’s projected $325 million budget. However the new state budget includes an extra $55 million, more than enough to cover the projected $45 million deficit, which now brings the state’s contribution to nearly 57 percent of PAT’s budget.
While mass transit proponents laud this development, does it really solve the transit agency’s problems? After all this is not the first time the Governor has thrown money PAT’s way and yet no significant improvement has been made in reducing the high costs of operations or improving efficiencies. More money has not addressed pension or health care costs given to retirees.
PAT needs to have its feet held to the fire. It appeared to be happening as the agency began to cut service, raise fares, and furlough employees—both management and general workforce. But these have been baby steps that have not put a dent in the problem. PAT and its unions have vehemently resisted outsourcing smaller routes or maintenance. They have balked at using smaller buses on lesser used routes or changing work rules to operate split shifts to cover the morning and evening rush. They continue to own and maintain the woefully under utilized Wabash Tunnel HOV and South Hills parking garage. And they continue forward on the boondoggle known as the North Shore Connector.
The Legislature and Governor need to apply pressure to the Port Authority. They should demand representation on PAT’s governance board and insist on privatizing parts of the agency. Until real progress is made, bailouts should not be forthcoming—they just delay the inevitable collapse of the system.
While mass transit proponents laud this development, does it really solve the transit agency’s problems? After all this is not the first time the Governor has thrown money PAT’s way and yet no significant improvement has been made in reducing the high costs of operations or improving efficiencies. More money has not addressed pension or health care costs given to retirees.
PAT needs to have its feet held to the fire. It appeared to be happening as the agency began to cut service, raise fares, and furlough employees—both management and general workforce. But these have been baby steps that have not put a dent in the problem. PAT and its unions have vehemently resisted outsourcing smaller routes or maintenance. They have balked at using smaller buses on lesser used routes or changing work rules to operate split shifts to cover the morning and evening rush. They continue to own and maintain the woefully under utilized Wabash Tunnel HOV and South Hills parking garage. And they continue forward on the boondoggle known as the North Shore Connector.
The Legislature and Governor need to apply pressure to the Port Authority. They should demand representation on PAT’s governance board and insist on privatizing parts of the agency. Until real progress is made, bailouts should not be forthcoming—they just delay the inevitable collapse of the system.
