FY 2012 Capital Budget and FY 2012-2023 Capital Program - Septa

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FUNDING OUTLOOK AND SHORTFALL
State Capital Funding Outlook
In March 2010, the Pennsylvania Turnpike Commission was unable to obtain the approval of the Federal Highway
Administration to begin tolling Interstate 80. As a result, Act 44 funding for transportation in the Commonwealth was significantly
impacted. With the reduction in Act 44 funding, SEPTA’s annual capital budget was cut by 25 percent, or $110 million, beginning in
Fiscal Year 2011 (July 1, 2010). Without approved sources of funding to replace this funding gap, SEPTA must continue to program
State funding for capital projects at the reduced Fiscal Year 2011 level.
In April 2011, the Transportation Funding Advisory Commission (TFAC) was established by Executive Order at the direction of
Governor Tom Corbett. The purpose of the Commission was to develop a comprehensive strategic proposal for addressing the
transportation funding needs of Pennsylvania. On August 1, 2011, the Transportation Funding Advisory Commission submitted its final
report. The report outlines several modernization proposals and a recommended funding package to address transportation needs
throughout the Commonwealth. The proposed funding package would provide $2.7 billion annually by the fifth year of the program for
highways and transit. With respect to transit, the recommendation includes:
• The reallocation to transit of $200M per year from the Pennsylvania Turnpike (funds currently allocated to highways)
• 2.0% State Sales and Use Tax dedicated to transit by year 5
• Enabling Small Games of Chance
• Increasing the local transit match
• Modernization (via regionalized service, new efficiencies and technology advancements)
Deferred Projects
In Fiscal Year 2011, the Authority deferred twenty-two major projects, totaling over $720 million. These projects had been
previously programmed for funding in the first four years of the Capital Program. The list of deferred projects is provided on the
following page. Through federal competitive grant programs and limited financing opportunities, SEPTA was able to advance three of
these projects – New Payment Technologies, Parkside Loop and Wayne Junction Station. The remaining unfunded projects have
been included in the outer years of the capital program subject to identification of a funding source and Board approval to advance
these projects. In addition to these projects, the Authority’s backlog of State of Good Repair projects will continue to grow.
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