Pittsburgh, PA – The Administration and Finance Committee of the Port Authority Board of Directors today sent a proposed 25-cent increase in the base fare – Port Authority’s first fare increase in more than five years – to the full Board for consideration at its regular meeting on November 21, 2007.
The proposal, an expectation of the Pennsylvania Transportation Funding and Reform Commission report issued last November, increases the base fare from $1.75 to $2 on January 1, 2008. It maintains Port Authority’s zone structure and includes commensurate increases in zone fares and all fare instruments. The proposal is not formally adopted until approved by the Board’s November 21 vote.
“The commission was clear in finding that a sustainable future for public transportation is achievable if transit agencies across the state make the tough decisions, and this is one of them,” said Port Authority Chief Executive Officer Steve Bland. “Among the commission’s recommendations was the adoption of fare policies that mirror inflation, and we believe our commitment to do so – and our immediate response to its other recommendations – helped build support for the state funding package approved in July.
“During our extensive public hearings earlier this year on proposed service reductions of 25 percent and fare increases to $2.50, many customers told us fare increases were preferable to dramatic reductions in service. We reduced service by 15 percent in June, and we are committed to maintaining current service levels. This fare increase will help us accomplish that critical goal.”
The proposed fare represents a 14 percent increase in the base fare enacted on September 1, 2002, or an annualized increase of 2.8 percent. Since then, the cost of gasoline has increased by 123 percent (U.S. Department of Energy), and Port Authority’s diesel costs have grown by 171 percent.
The proposed fare increase is the latest in a broad series of Port Authority initiatives designed to help preserve service by reducing costs or increasing revenues. Earlier this year, Port Authority entered into new agreements with the University of Pittsburgh and Carnegie Mellon University that include annual 15 percent increases, and Port Authority addressed the commission recommendation to reduce management costs by instituting several measures affecting non-represented employees, including:
- Accelerating the departure of employees in a Deferred Retirement Option Program
- Eliminating “lifetime healthcare” for those retiring after June 30, 2007
- Restricting the “buy-back” of previous employment time only to military years of service and instituting 10-year vesting period
- Eliminating a $500 monthly pension supplement
- Increasing employees’ healthcare contributions to 2 percent of annual salary in Fiscal Year 2008 and 3 percent in FY 2009
- Freezing Fiscal Year 2008 salaries
- Freezing the CEO’s salary through June 2009 (amounting to a three-year freeze) and removing his deferred compensation contribution by the Authority
- Freezing all senior management position salaries (amounting to a two-year freeze)
- Eliminating unlimited accrual of sick leave, and
- Reducing the number of assistant general managers from eight to five
Similarly, Port Authority has also addressed other commission recommendations by:
- Adjusting system service to reflect market demand via the 15 percent service reduction;
- Implementing Smart Transportation principles in land use planning by pursuing joint development initiatives in Castle Shannon, Bethel Park, Robinson Township, Moon Township and East Liberty; and
- Evaluating competitive contracting and insourcing opportunities by shifting the operation and maintenance of the Wabash Tunnel to its own employees beginning January 1.
Port Authority weekly and monthly passes, as well as an annual pass subscription, continue to provide significant discounts for customers. A monthly pass holder using Port Authority service to commute to and from work in a typical month (22 weekdays) would save $33 over the cash fare in Zone 3, $24 over the cash fare in Zone 2 and $13 over the cash fare in Zone 1.
Those savings would increase with each additional use; with enrollment in Port Authority’s annual pass program, which includes higher discounts and, through December 7, allows customers to lock in current prices for 12 months; or with the purchase of a monthly pass through Job Perks, the Port Authority program which allows employees to use pre-tax dollars to purchase their passes through their employers.
Thus, Port Authority service will continue to be provided at a significantly lower cost than driving. After housing, the American Public Transportation Association points out, transportation is the second highest cost for American families, outpacing both food and healthcare costs. At current local prices of $3.09, a commuter filling a 20-gallon gas tank once a week and parking for $10 per weekday downtown would spend about $487 per month – $397 more than the cost of a monthly Port Authority Zone Two pass that accommodates an unlimited number of rides.
Under the proposed fare changes, transfers remain at 50 cents and valid for three hours. Current Ten Trip Tickets will be accepted as fare payment with a cash drop of 25 cents from January 1 through March 31, 2008. Subsequently, only Ten Trip Tickets purchased at the new price will be accepted. Customers can only exchange full books of current Ten Trip Tickets for full books of new Ten Trip Tickets, along with payment of the price difference, at Port Authority’s Downtown Service Center, 534 Smithfield Street, through March 31, 2008.
Customers who wish more information about Port Authority’s Job Perks program, its annual pass program or have any questions about the new fare structure should contact Port Authority Customer Service at (412) 442-2000 or the TTY number, (412) 231-7007, for the speech and hearing impaired, or visit Port Authority’s Web site, www.portauthority.org.