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December 13, 2010 | By Jim Panyard | Posted in General News

Allegheny Port Authority Bail Out Gets Official Okay

Commission votes 27-22 to accept funds

The Southwestern Pennsylvania Commission (SPC) agreed late Monday to accept $45 million in transit funds offered by Gov. Ed Rendell to temporarily bail out the financially struggling Port Authority of Allegheny County.

The SPC is a 66-member body of elected officials and bureaucrats from Allegheny and nine surrounding counties that attempt to coordinate regional government activities.

The final vote was 27-22 in favor of Mr. Rendell’s offer, with resistance being offered by counties and regions who feel the funds will be taken from projects that would better serve their regions. SPC will act as a “pass through” agency for the funding that will use federal tax money.

Port Authority CEO Steve Bland said his agency, which supplies public transit throughout the Pittsburgh area, may be able to use the funds through July and make smaller service cuts than anticipated. The Port Authority was in a $47 million hole when Mr. Rendell offered the temporary reprieve.

Mr. Rendell believed the large cuts planned by the authority would have been “catastrophic” to the Pittsburgh-area economy.

Allegheny County Executive Dan Onorato, a Democrat, asked Mr. Bland to develop an 18-month plan for reduced operations until the General Assembly can come up with a more permanent solution to the seemingly unending financial crises that face the Port Auhority.

Mr. Bland said the $45 million will enable to the authority to decrease its planned 35 percent service cut, but said January fare hikes will remain in place.

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Jim Panyard is a reporter for PA Independent. He can be reached at Jim@PAIndependent.com.

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