by adamkrom
Act I: Budget Crisis
The Philadelphia Inquirer
Author: TOM MASLAND
Date: April 22, 1981
Section: LOCAL
Page: A01
By Tom Masland Inquirer Staff Writer
SEPTA must increase fares, sharply cut service and freeze some wages in order to survive, SEPTA General Manager David L. Gunn said in a 1982 budget proposal released yesterday.
Gunn's budget proposes a fare increase of either 5 or 10 cents in the city, a 5-cent increase in transfer prices, possible elimination of student discounts, and " drastic" service cutbacks and wage freezes on Conrail commuter rail lines.
" The actions proposed in this budget are critical to SEPTA's survival, "Gunn said. Drastic actions are needed to raise $380 million, an increase of $18 million over the 1981 budget, he told the SEPTA board. But, he added, even if the board accepts his plan for fiscal 1982, which begins July 1, SEPTA's financial problems will not be over.
"No provision has been made in the current budget to solve SEPTA's recurring critical problem of the lack of working capital," he said. " As in the past, SEPTA will once again, at the end of fiscal 1981 and at the end of fiscal 1982, experience its ever- recurring crisis of running out of cash, awaiting the delays caused by state and federal bureaucracy in making subsidy funds available."
SEPTA board chairman David Girard-DiCarlo and other board members met yesterday to discuss the recent contract settlement with city transit workers. They could not immediately be reached for comment on the proposed budget. The board is to vote today on the contract, which ended a 19-day strike earlier this month.
Gunn said that a fare increase would be needed to raise $10 million for transit operations. He suggested that, effective July 5, the board raise the basic transit fare a nickel, to 70 cents, raise the cost of transfers a nickel, to 15 cents, and eliminate the 50 percent discounts offered students riding SEPTA to school and back.
If the board chooses to save the student discounts, fares should rise a dime, he said. He also proposed that the cost of monthly passes be raised $2 to $34 and that the cost of weekly passes be increased 50 cents, to $8.75. In proposing the fare increases on SEPTA's buses, trolleys and subways, Gunn promised " intensified" efforts to " restore the transit system to a clean, dependable form of transportation" by adding 250 rebuilt buses and 150 new buses to the fleet, adding 60 security officers, rebuilding subways, removing graffiti from vehicles and improving maintenance and quality-control programs. Gunn saved his strongest language for his discussion of the Commuter Rail Division.
A yearlong wage freeze and revised work rules for Commuter Rail Division workers, coupled with " the elimination of high-cost, low-density rail diesel service and the rescheduling of electric service," is essential, he said. "Without these measures, the Commuter Rail System will likely cease operation during fiscal 1982," he said.
A fare increase on the commuter lines would probably cost the system money because riders would opt for other ways to get to work, he said. SEPTA recently revealed that the last fare increase, which took effect Jan. 1, reduced fare revenues.
Gunn's proposal did not specify where service cuts would be made on the commuter lines, but a SEPTA spokesman said that the cuts would be "systemwide."
Gunn's call for a wage freeze and changed work rules was immediately denounced by one union leader representing the workers involved. Charles H. Little, an official of Transport Workers Union Local 2013, noted that Conrail, not SEPTA, negotiated contracts with 11 unions whose members run the commuter trains. Conrail operates the trains under contract to SEPTA, and SEPTA has been urging Conrail to take a tougher line at the bargaining table.
Little said that a wage freeze had not even been discussed in his union's current negotiations with Conrail. At any rate, such a proposal is " out of the question with the rising inflation," he said.
"We negotiate with Conrail, and we have no intention of allowing SEPTA to sit at the same bargaining table with us," he said.
The Philadelphia Inquirer
Author: TOM MASLAND
Date: April 22, 1981
Section: LOCAL
Page: A01
By Tom Masland Inquirer Staff Writer
SEPTA must increase fares, sharply cut service and freeze some wages in order to survive, SEPTA General Manager David L. Gunn said in a 1982 budget proposal released yesterday.
Gunn's budget proposes a fare increase of either 5 or 10 cents in the city, a 5-cent increase in transfer prices, possible elimination of student discounts, and " drastic" service cutbacks and wage freezes on Conrail commuter rail lines.
" The actions proposed in this budget are critical to SEPTA's survival, "Gunn said. Drastic actions are needed to raise $380 million, an increase of $18 million over the 1981 budget, he told the SEPTA board. But, he added, even if the board accepts his plan for fiscal 1982, which begins July 1, SEPTA's financial problems will not be over.
"No provision has been made in the current budget to solve SEPTA's recurring critical problem of the lack of working capital," he said. " As in the past, SEPTA will once again, at the end of fiscal 1981 and at the end of fiscal 1982, experience its ever- recurring crisis of running out of cash, awaiting the delays caused by state and federal bureaucracy in making subsidy funds available."
SEPTA board chairman David Girard-DiCarlo and other board members met yesterday to discuss the recent contract settlement with city transit workers. They could not immediately be reached for comment on the proposed budget. The board is to vote today on the contract, which ended a 19-day strike earlier this month.
Gunn said that a fare increase would be needed to raise $10 million for transit operations. He suggested that, effective July 5, the board raise the basic transit fare a nickel, to 70 cents, raise the cost of transfers a nickel, to 15 cents, and eliminate the 50 percent discounts offered students riding SEPTA to school and back.
If the board chooses to save the student discounts, fares should rise a dime, he said. He also proposed that the cost of monthly passes be raised $2 to $34 and that the cost of weekly passes be increased 50 cents, to $8.75. In proposing the fare increases on SEPTA's buses, trolleys and subways, Gunn promised " intensified" efforts to " restore the transit system to a clean, dependable form of transportation" by adding 250 rebuilt buses and 150 new buses to the fleet, adding 60 security officers, rebuilding subways, removing graffiti from vehicles and improving maintenance and quality-control programs. Gunn saved his strongest language for his discussion of the Commuter Rail Division.
A yearlong wage freeze and revised work rules for Commuter Rail Division workers, coupled with " the elimination of high-cost, low-density rail diesel service and the rescheduling of electric service," is essential, he said. "Without these measures, the Commuter Rail System will likely cease operation during fiscal 1982," he said.
A fare increase on the commuter lines would probably cost the system money because riders would opt for other ways to get to work, he said. SEPTA recently revealed that the last fare increase, which took effect Jan. 1, reduced fare revenues.
Gunn's proposal did not specify where service cuts would be made on the commuter lines, but a SEPTA spokesman said that the cuts would be "systemwide."
Gunn's call for a wage freeze and changed work rules was immediately denounced by one union leader representing the workers involved. Charles H. Little, an official of Transport Workers Union Local 2013, noted that Conrail, not SEPTA, negotiated contracts with 11 unions whose members run the commuter trains. Conrail operates the trains under contract to SEPTA, and SEPTA has been urging Conrail to take a tougher line at the bargaining table.
Little said that a wage freeze had not even been discussed in his union's current negotiations with Conrail. At any rate, such a proposal is " out of the question with the rising inflation," he said.
"We negotiate with Conrail, and we have no intention of allowing SEPTA to sit at the same bargaining table with us," he said.