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Pittsburgh Transit Avoids Service Cuts with $106M Fund Transfer

Pittsburgh Regional Transit's board voted to use $106 million in capital funds to avoid a 35% service cut and 9% fare hike, providing a two-year reprieve.

David Miller
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David Miller

David Miller is an urban development and transportation journalist. He covers infrastructure projects, public transit, and their impact on city planning and community life. He has over eight years of experience reporting on metropolitan growth.

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Pittsburgh Transit Avoids Service Cuts with $106M Fund Transfer

The Pittsburgh Regional Transit (PRT) board has officially voted to prevent significant service reductions and fare increases that were scheduled for early next year. This decision was made possible after the Pennsylvania Department of Transportation (PennDOT) approved the transit authority's request to repurpose $106 million from its capital budget to cover a pressing operational deficit.

Key Takeaways

  • Pittsburgh Regional Transit will not implement a proposed 35% service cut and 9% fare increase previously scheduled for February.
  • The board approved using $106 million from its capital funds to cover an operational budget shortfall for the next two years.
  • PennDOT authorized the fund transfer, providing a temporary financial solution for the transit agency.
  • Transit officials and union leaders have expressed concerns that this is a short-term fix that compromises long-term infrastructure investment.

Board Vote Secures Short-Term Stability

In a crucial meeting on Friday, the board of Pittsburgh Regional Transit voted to amend its budget, a move that provides immediate relief for thousands of daily commuters. The decision formally halts a plan that would have seen a 35% reduction in bus and rail routes and a 9% increase in fares across the system. These changes were initially proposed to address a projected nine-figure deficit.

Without this intervention, the service cuts would have taken effect in February, significantly impacting residents who rely on public transportation for work, school, and essential services. The vote effectively provides a two-year pause on these drastic measures, ensuring service levels remain consistent for the immediate future.

Understanding Capital vs. Operational Funds

Public transit agencies operate with two distinct budgets. Operational funds cover day-to-day costs like employee salaries, fuel, and utilities. Capital funds are designated for long-term investments, such as purchasing new vehicles, upgrading infrastructure like tracks and stations, and implementing new technology. Using capital funds for operational expenses is generally considered an unsustainable practice.

The $106 Million Financial Reprieve

The core of the board's decision rests on an approval from PennDOT. PRT formally requested permission to transfer $106 million from its capital budget to its operational budget. PennDOT's green light for this request was the critical step that allowed the board to avert the service crisis.

This substantial sum will be used directly to close the projected budget gap that prompted the initial proposals for cuts and fare hikes. While the transfer solves the immediate problem, it means that $106 million originally intended for long-term system improvements will now be spent on daily operations.

“Using capital funding to support our operations allows us to maintain service and protect riders, but it strains our ability to maintain our system in the short-term and invest in our long-term future,” said PRT CEO Katharine Kelleman.

Kelleman emphasized the difficult trade-off, highlighting that while riders are protected from immediate disruptions, the agency's ability to perform necessary maintenance and plan for future growth is now under greater pressure. She added that advocacy for a more permanent funding solution is a top priority.

Widespread Concerns Over Long-Term Viability

Despite the relief felt by many riders, the mood at the board meeting was one of cautious apprehension. Several speakers, including union representatives and community members, described the fund transfer as a temporary measure that fails to address the root causes of PRT's financial instability. The term "Band-Aid solution" was used during the meeting to characterize the budget amendment.

A Temporary Fix with Future Consequences

Ross Nicotero, President of the Amalgamated Transit Union (ATU) Local 85, which represents many PRT workers, voiced strong concerns about the strategy. He likened the move to a short-sighted financial maneuver that could have negative long-term effects.

"This is a short-term fix, like many of the speakers ahead of me mentioned," Nicotero stated. "In fact, it's like robbing Peter to pay Paul."

This sentiment was echoed by others who worry that deferring capital projects will lead to a decline in the system's reliability and safety over time. Projects that could be delayed include purchasing new, more efficient buses, repairing aging bridges and tunnels, and upgrading signal systems.

Impact of Proposed Cuts

The averted cuts were not minor adjustments. A 35% reduction in service would have eliminated many routes entirely and drastically reduced frequency on others. Additionally, the proposal included a 62% decrease in services for riders with disabilities under the Americans with Disabilities Act (ADA).

The Search for a Sustainable Funding Model

With a two-year window secured, the focus now shifts to finding a permanent and sustainable source of funding for Pittsburgh's public transit system. PRT leadership has made it clear that they will continue to press state legislators in Harrisburg for a new funding formula that adequately supports public transportation in the region.

Transit agencies across the country are facing similar financial challenges as federal pandemic relief funds expire and operational costs continue to rise. The situation at PRT underscores a broader, national conversation about the importance of public investment in transit infrastructure.

For now, Pittsburgh's riders can expect their bus and rail services to continue as normal. However, the debate over the long-term health and funding of their transit system is far from over, with the clock now ticking on the two-year reprieve.