Senator Stewart Greenleaf

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News Release
For Immediate Release
February 11, 2005

GREENLEAF REINTRODUCES MASS TRANSIT SUPPORT BILL 

HARRISBURG – Sen. Stewart J. Greenleaf has reintroduced a proposal to keep SEPTA and other financially-strapped transit systems running by increasing the share of the state sales tax dedicated to mass transit funding.

"SEPTA's continued operation is an economic necessity for southeastern Pennsylvania.  Its trains and buses take people to work, to school, and to medical appointments.  SEPTA's viability is crucial to reducing traffic congestion and pollution in the region," Greenleaf said.  "My legislation, Senate Bill 301, would address the deficits faced by SEPTA and other transit systems across the state by lifting the cap placed on transit's current share of the sales tax and by increasing the share of the sales tax dedicated to transit funding."

The state's mass transportation systems are supposed to receive 2.1 percent of the sales tax, but 1.22 percent of that is capped at $75 million.  Greenleaf's proposal would remove the cap, thus generating more than $20 million, and would dedicate an additional 3.3 percent of the sales tax to transit support, producing an extra $306 million.  In accordance with an agreement of the Pennsylvania Public Transportation Association (PPTA), the measure would establish a new distribution formula to meet the resource needs of the 74 transit systems in the commonwealth, provide $10 million annually to fund welfare-to-work transportation projects through the State Department of Transportation; and maintain the Harrisburg-Philadelphia Amtrak corridor through an additional dedication of 0.378 percent of the sales tax.

Greenleaf, a member of the SEPTA board, noted that the main goal of the legislation, developed through lengthy discussions with PPTA members, is to assure a dedicated source of funding for transit systems that are faced with deficits that may require steep fare increases and service cutbacks to remain operational.  Currently, SEPTA has a $49 million deficit for fiscal year 2005.  Service cuts and fare hikes are possible if the deficit is not otherwise addressed.

"SEPTA is important to businesses and to their employees who ride transit to work every day.  It is important to those who drive as well as to those who ride because SEPTA reduces traffic congestion.  Each bus taken out of service results in 40 more cars on the roads every day and each train taken out of service results in 120 more cars," Greenleaf said.  "And, since every capital dollar invested in SEPTA has a multiplier effect of six dollars in the economy, it makes economic sense to keep transit operational with an additional share of the sales tax," Greenleaf said.

Greenleaf's is one of several funding proposals that have been offered this session to support the state's transit systems.

 

 

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