U A A R Ec Ec UNDERS pril 2013 PRIL 2013 EPORT BY: conomy Leag consult Solut STANDIN ue of Greater ions, Inc. NG SEP r Philadelphia PTA’ S S a TATEW IDE ECO ONOMIC C VALU E
UA
A
R
Ec
Ec
UNDERSpril 2013
PRIL 2013
EPORT BY:
conomy Leag
consult Solut
STANDIN
ue of Greater
ions, Inc.
NGSEP
r Philadelphia
PTA’SS
a
TATEW
IDEECOONOMICCVALUE
EC
C
E
T
T
SR
1.
1.
1.
1.
S
2.
2.
2.
2.
S
3.
3.
CONOMY LEAGUE OF
CONTENTS
XECUTIVE
TABLEOFT
TABLEOFF
ECTION1:REVENUES&
.1 Overview of
1.1‐1 Funding
1.1‐2 Funding
.2 Southeaster
1.2‐1 Liquid F
1.2‐2 Operato
1.2‐3 Vehicle
1.2‐4 Pennsy
1.2‐5 Restrict
1.2‐6 Total Es
.3 Southeaster
1.3‐1 Motor L
1.3‐2 Public T
.4 Total Transp
ECTION2:
.1 Funding & M
.2 Improvemen
2.2‐1 The Pro
2.2‐2 A Partia
2.2‐3 SEPTA’S
.3 SEPTA’s Suc
2.3‐1 A Natio
2.3‐2 Overvie
2.3‐3 Improve
.4 Summary
ECTION3:
.1 Peer Agency
3.1‐1 Ridersh
3.1‐2 Fare Re
3.1‐3 Custom
3.1‐4 Operati
.2 SEPTA & Oth
F GREATER PHILADEL
S
SUMMARY
TABLES
IGURES
SOUTHEAS&EXPENDI
f Transportatio
g for Highways
g for Public Tra
rn Pennsylvani
Fuel (“Gas”) Ta
ors’ Licenses
Registration &
lvania Turnpike
ted Revenues
stimated Regio
rn Pennsylvani
License Fund (H
Transit
portation Expe
SEPTA’SST
Market Perform
nts From Adop
oblem
al Solution – Ac
S Use of Act 44
cess in Investi
nal Perspectiv
ew of ARRA Fun
ed Constructio
COMPARIS
y Comparisons
ip Trends
ecovery
mer Satisfaction
ing & Capital B
her Commonw
LPHIA & ECONSULT S
Y
STERNPENITURES
on Funding in
s, Roads & Brid
ansit
ia’s Contributi
x Revenues
& Titling Fees
e Payments
onal Motor Lice
ia’s Share of St
Highways, Roa
enditures (Geo
TEWARDSH
mance
ption of Act 44
ct 44
4 Funds
ng ARRA Fund
e
nds Invested b
on Managemen
SONOFSEP
s
n
Budgets
wealth Transit
SOLUTIONS, INC. – AP
NNSYLVANIA
Pennsylvania
ges
on to State Tra
ense Fund Reve
tate Transport
ds & Bridges)
ographically Ba
HIPOFPUB
4 of 2007
ds
y SEPTA
nt Led to Signif
PTABUDGE
Agencies
PRIL 2013
1 | P a g e
A’SSHARE
ansportation F
enues
tation Investm
ased)
BLICFUNDS
ficant Cost Sav
ETS&SERV
OFSTATE
Funds
ment
S
vings
VICESWITH
TRANSPOR
HOTHERAG
RTATION
GENCIES
3
8
9
10
10 10 11
11 12 12 12 13 13 13
14 14 15
17
18
18
22 22 23 24
26 26 27 28
29
30
30 30 30 33 34
37
EC
S
4.
4.
4.
4.
SS
5.
5.
5.
5.
5.
A
A
A
A
A
CONOMY LEAGUE OF
ECTION4:
.1 Economic Im
4.1‐1 Method
4.1‐2 Econom
.2 Economic Im
4.2‐1 Method
4.2.2 Econom
.3 Fiscal Impac
4.3‐1 Capital
4.3‐2 Operati
.4 Summary of
ECTION5–HORTFALL
.1 Overview
.2 A Look Back
.3 A Look Ahea
5.3‐1 Transpo
5.3‐2 Employ
5.3‐3 Fiscal Im
5.3‐4 Other Im
.4 SEPTA’s Imp
5.4‐1 Impact
.5 Economic Co
5.5‐1 Regiona
5.3‐2 Econom
5.3‐3 Fiscal C
APPENDICE
PPENDIX A: SE
PPENDIX B: SE
PPENDIX C: Ec
A.1 Economic
A.2 Fiscal Imp
PPENDIX D: Gl
F GREATER PHILADEL
ECONOMIC
mpact of SEPTA
dology
mic Impact Esti
mpact of SEPTA
dology
mic Impact Estim
cts on the Com
Investments
ions
f Economic & F
–LONG‐TERLS
k: Impact Analy
ad: What If Th
ortation Impac
yment & Real E
mpacts
mpacts
pending Capita
on Transit Serv
osts of Status Q
al Travel Costs
mic Costs
osts
S
EPTA Projects F
EPTA Capital Bu
conomic & Fisc
c Impact Mode
pact Model
lossary of Econ
LPHIA & ECONSULT S
CIMPACTO
A Capital Inves
mates
A Operations
mates
mmonwealth
Fiscal Impacts
RMIMPACT
ysis of SEPTA’s
ere Was No SE
cts
Estate Impacts
al Crisis
vice
Quo Underfun
Funded by ARR
udget Departm
cal Impact Mod
el
nomic Impact A
SOLUTIONS, INC. – AP
OFSEPTAC
stments
TSOFSEPT
s Proposed Far
EPTA?
nding of SEPTA
RA
mental Expend
del Methodolo
Analysis Term
PRIL 2013
2 | P a g e
CAPITALIN
TA’SCAPITA
re Increases &
A’s Capital Nee
ditures by Indu
ogy
inology
VESTMENT
AL&OPER
& Service Cuts (
eds
ustry Grouping
TS&OPERA
RATINGFUN
(2007)
g
ATIONS
NDING
39
39 39 42
43 43 45
46 46 47
47
48
48
48
49 49 50 51 51
52 52
55 55 57 57
59
59
60
61 61 61
63
EC
E
TH
Th
jo
th
By
O
In
co
w
hi
ca
Ec
th
re
Fo
fo
CONOMY LEAGUE OF
EXECUTIV
HE BOTTOM
he economic
ob creation, ta
he economy o
y investing in
‐ A regio
contin
‐ SEPTA
26,000
‐ SEPTA
adequ
OVERVIEW OF
n 2007, the Ec
onsequences
were identified
ighest ridersh
apital funding
conomy Leag
he Commonw
eport has thre
1) To und
Comm
2) To det
source
3) To pro
to fund
or the purpos
ollowing ques
1) To wha
Montg
are the
2) To wha
3) How d
4) What a
5) What a
Pennsy
F GREATER PHILADEL
VESUMMA
LINE
value of the S
ax revenues,
of southeaste
SEPTA, the s
on that produ
ues to be eco
expenditures
0 jobs and gen
, which rema
ate resources
F REPORT
conomy Leagu
of underfund
d and acted u
hip levels in tw
g required to
ue and Econs
wealth’s econo
ee main goals
derstand the
monwealth of
termine how
es; and
ovide updated
d SEPTA is co
se of this repo
stions:
at extent do t
gomery, and P
e beneficiarie
at extent has
oes the perfo
are SEPTA’s e
are the possib
ylvania and th
LPHIA & ECONSULT S
ARY
Southeastern
and economi
ern Pennsylva
state will ensu
uces 40 perce
onomically pr
s continue to
nerating $62
ins significan
s to address a
ue of Greater
ding SEPTA on
upon, but circ
wenty‐three y
maintain and
sult (now Eco
omy and ana
s:
economic val
Pennsylvania
SEPTA compa
d, nonpartisan
nsidered.
ort, the Econo
the five coun
Philadelphia –
es of transpor
SEPTA been
ormance of SE
economic and
ble long‐term
he Commonw
SOLUTIONS, INC. – AP
n Pennsylvani
ic output, but
nia and the C
ure that:
ent of the stat
roductive;
contribute m
2.5 million in t
tly underfund
a growing cris
r Philadelphia
n southeaster
cumstances h
years, SEPTA
d improve its
nsult Solution
lyze the value
lue of SEPTA,
a;
ares to other
n information
omy League a
ties of southe
– contribute t
rtation‐relate
a good stewa
EPTA operatio
d fiscal impact
m consequenc
wealth?
PRIL 2013
3 | P a g e
a Transportat
t perhaps mo
Commonweal
te’s economic
more than $3
tax revenues
ded despite r
sis of capital n
a (Economy Le
rn Pennsylvan
ave changed
is confronted
infrastructure
ns, or ESI) hav
e of expanded
in terms of e
transit agenc
n to state law
and ESI condu
eastern Penn
to the Comm
d expenditur
ard of public f
ons compare
ts on southea
ces of inadequ
tion Authorit
ore important
lth as a whole
c output and
billion in eco
to the Comm
ecent tempo
need.
eague) and Ec
nia and the C
and once aga
d with a serio
e and system
ve again team
d Commonwe
economic and
cies in terms o
wmakers and s
ucted five set
sylvania – Bu
onwealth’s tr
res?
funds?
to Commonw
astern Pennsy
uate, status q
ty (SEPTA) is s
tly, in terms o
e.
relies heavily
onomic outpu
monwealth; an
rary infusions
consult team
Commonwealt
ain in 2013, d
ous funding sh
m.
med to reexam
ealth investm
d fiscal impac
of performan
stakeholders
ts of analyses
ucks, Chester,
ransportation
wealth agenc
ylvania and th
quo funding le
significant in t
of its catalytic
y on SEPTA se
t, supporting
nd
s of funding,
ed to evaluat
th. Funding s
despite achiev
hortfall, espe
mine SEPTA’s
ment in SEPTA
ts on the
nce, scope, an
as the decisio
to answer th
Delaware,
n‐related reve
cies and indus
he Commonw
evels on sout
terms of
c effect on
ervice
g over
has
te the
olutions
ving its
cially for
s role in
A. This
nd revenue
on on how
he
enues, and
stry peers?
wealth?
theastern
EC
K
Fi
ac
de
co
O
Se
Le
ca
Th
de
O
CONOMY LEAGUE OF
EY FINDINGS
irst: The five c
ctivity and re
ensity and ec
ontribute mo
Of note:
‐ Southe
of stat
‐ SEPTA
fundin
subsid
‐ In tota
to the
SOUTHE
ROADS AN
PUBLIC TR
TRANSPO
POPULAT
ECONOM
econd: SEPTA
eague and ES
apital funding
hese landmar
emonstrated
Of note:
‐ A more
investm
resour
‐ During
efficie
overru
‐ Under
fundin
‐ Since t
allocat
‐ With t
year lo
F GREATER PHILADEL
counties of so
present 32 pe
conomic prod
re than its sh
eastern Penn
te highway an
carries 77 pe
ng in return. S
y is $2.66 per
al, 27 percent
region’s 32 p
EAST PA’S SHAR
ND BRIDGES
RANSPORTATIO
ORTATION TOTA
TION
IC OUTPUT
A has made si
I’s 2007 repo
g: Pennsylvan
rk pieces of le
its ability to
e than 10 per
ment; the str
rces most sign
g the brief pe
ncy as measu
uns;
ARRA, SEPTA
ng;
the expiration
tion of in‐hou
he expiration
ow (nominally
LPHIA & ECONSULT S
outheastern P
ercent of stat
uctivity repre
are of econo
sylvania gene
nd bridge cap
ercent of stat
SEPTA’s state
r rider; and
of state tran
percent share
E OF TRANSPOR
SOUTHEAS
PA
$659,3
N $667,2
L $1,326,5
Source: US
Source: Eco
gnificant prog
ort. These imp
nia Act 44 of 2
egislation resu
effectively inv
rcent spike in
ongest gains
nificantly;
riod of increa
ured by a decr
A’s rigid cost c
n of ARRA, SE
use and third‐
n of ARRA and
y at 1997 leve
SOLUTIONS, INC. – AP
Pennsylvania
tewide popula
esents SEPTA’
mic output a
erates 24 perc
ital and main
ewide transit
operating su
sportation do
of populatio
RTATION INVEST
FY 2010‐
ST PA
09 $3,758,4
38 $1,060,4
547 $4,818,8
S Census Bureau
onomy League (
gress toward
provements c
2007 and the
ulted in a thre
vest an influx
SEPTA’s cust
were realized
ased capital fu
rease in chan
controls allow
EPTA has cont
‐party labor, m
d the reductio
els).
PRIL 2013
4 | P a g e
generate app
ation, while o
’s economic l
nd funds into
cent of Moto
ntenance expe
t riders and re
bsidy is $1.49
ollars are inve
n and 40 perc
TMENT IS WELL
‐11
SOUTHEA
PA SHA
458 17
434 62
892 27
(2011)
2011)
s several key
oincided with
American Re
ee year uptic
x of new reso
tomer satisfac
d on those pa
unding, SEPTA
ge order rate
wed six extra
tinued to ach
materials, and
on of Act 44 f
proximately 4
occupying five
everage, allo
o the Commo
or License Fun
enditures in r
eceives 62 pe
9 per rider; th
ested in south
cent share of
BELOW ITS SHA
AST
ARE
SOUTHE
PA
7.5% $ 685
2.9% $ 687
7.5% $1,372
4,030
performance
h two major –
ecovery & Rei
ck in capital fu
urces.
ction was cor
arts of the sys
A continued t
es, a key indic
projects to ad
ieve project c
d supplies; an
funding, SEPT
40 percent of
e percent of i
owing southea
nwealth’s cof
nd revenues a
return;
ercent of state
he statewide
heastern Pen
f economic ou
ARE OF ECONOM
FY 2011
EAST PA
5,094 $4,014
7,856 $1,106
2,950 $5,121,
0,926 12,763,
e indicators s
– but tempor
nvestment Ac
unding, durin
rrelated with
stem where S
to improve pr
cator of unan
dvance with f
cost savings b
nd
TA’s capital bu
f statewide ec
its total land.
astern Pennsy
ffers.
and receives 1
ewide transit
average oper
nsylvania, co
utput.
MIC PRODUCTIV
1‐12
SOUTHE
PA SHA
,869 1
,251 6
,120 2
,536 3
4
ince the Econ
ary – infusion
ct (ARRA) of 2
g which time
an uptick in c
SEPTA investe
roject manag
ticipated pro
federal stimu
by right‐sizing
udget is now
conomic
This
ylvania to
17 percent
operating
rating
ompared
VITY
EAST
ARE
17.1%
62.2%
26.8%
31.6%
40.0%
nomy
ns of
2009.
SEPTA
capital
ed capital
ement
ject cost
ulus
g
at a 15‐
EC
Th
cu
pa
m
op
O
CONOMY LEAGUE OF
200
200
201
201
201
Sou
hird: While S
ustomer satis
assenger ope
measure of op
perators acro
Of note:
‐ SEPTA
and bu
‐ At 60 p
group;
‐ At $30
despit
agency
FY2013
levels
SEPTA
which
repair
Source
$
$20
$40
$60
$80
$1,00
$1,20
$1,40
$1,60
$ M
illions
F GREATER PHILADEL
SEPTA’S CHANG
YEAR NUCON
05‐2006
07‐2008
10
11
12
urce: SEPTA (201
EPTA’s capita
sfaction from
erating subsid
perating expe
oss the United
’s average an
us are all with
percent, SEPT
; and
04 million for
e a backlog o
y comparable
3 that exceed
of capital fun
, conversely,
are now mor
backlog with
SEPTA’
e: Massachusett
Transit
$1,352
$‐
00
00
00
00
00
00
00
00
LPHIA & ECONSULT S
GE ORDER RATE
MBER OF NTRACTS CO
29
53
41
43
27
13)
al funding is a
ARRA‐related
dies that are w
nses covered
d States.
nnual ridershi
hin a competi
TA’s capital bu
Fiscal Year (F
f capital need
e to SEPTA in
ds $800 millio
nding have co
must continu
re than one h
in twenty yea
’S CAPITAL FUN
ts Bay Transport
t, SEPTA, Washin
$1
$957
SOLUTIONS, INC. – AP
ES FOR CONSTRU
ORIGINAL ONTRACT VALUE
$200,500,000
$410,600,000
$192,614,273
$ 99,048,292
$ 100,316,630
t a 15‐year lo
d capital inve
well below ot
by passenge
p growth and
tive range of
udget is more
FY) 2013, SEPT
ds that is grow
terms of age,
on and a back
nsistently kep
ually confront
undred years
ars if its capit
DING IS CONSIS
tation Authority
ngton Metropoli
1,160 $1,152
FY
PRIL 2013
5 | P a g e
UCTION CONTRA
E CHANGE O
AMOUN
0 $20,20
0 $25,80
3 $11,09
2 $ 4,62
0 $ 4,35
ow, ridership
stments. Ride
her Pennsylva
r fares) at lev
d fare recover
its industry p
e dependent
TA’s capital b
wing and curr
, size, and mo
log of capital
pt its state of
t the challeng
s old. SEPTA c
al funding lev
STENTLY BELOW
(MBTA); Region
itan Area Transp
$1,000 $9
2012 FY 201
ACTS CONTINUE
RDER NT
RECONT
00,000 $
00,000 $
99,147 $
25,956 $
58,820 $
is at a 23‐yea
ership growth
ania transit a
vels that are c
ry ratios for c
peers;
on federal fu
budget is muc
rently totals $
odal composit
needs estim
f good repair
ge of maintain
could comple
vels were on
W INDUSTRY PEE
nal Transportatio
portation Author
$883
997
3
E TO DECLINE (2
ESULTING TRACT VALUE
$220,700,000
$436,400,000
$203,713,420
$103,674,248
$104,675,450
ar high, in par
h has helped
agencies and f
comparable w
commuter rai
nding than a
ch smaller tha
$4.7 billion. M
tion, has a ca
ated at $2.7
needs below
ning and upg
tely eliminate
par with MBT
RS (FY2012‐201
on Authority (RT
rity (2012‐2013)
$815
2005‐2012)
CHANGE ORDER RATE
10.1%
6.3%
5.8%
4.7%
4.3%
rt due to incre
SEPTA to sus
fare recovery
with other lar
l, heavy rail, l
ny agency in
an its peer gro
MBTA in Bosto
apital budget
billion. MBTA
w SEPTA’s leve
rading assets
e its state of g
TA.
3)
TA); New Jersey
)
$311 $304
eased
stain per
y ratios (a
rge transit
light rail,
its peer
oup,
on, an
for
A’s higher
el of need.
, many of
good
EC
Fo
se
in
O
Fi
le
$4
W
Lo
its
bi
m
fr
de
CONOMY LEAGUE OF
ourth: SEPTA
ervices, and c
n southeaster
On an annual b
‐ Contri
‐ Suppo
‐ Suppo
‐ Gener
DIRECT O
INDIRECT
TOTAL O
TOTAL EM
TOTAL EA
TOTAL TA
Source: E
ifth: Over the
evels. Withou
452 million in
Without an inf
‐ Over t
ends m
‐ The re
dense,
‐ The Co
and bu
ong‐term eco
s backlog of c
illion asset ba
million of savin
rom transit or
ecentralizatio
‐ The Cit
than $
‐ Southe
billion
would
‐ The Co
and les
F GREATER PHILADEL
creates jobs
capital investm
rn Pennsylvan
basis, SEPTA:
butes $3.21 b
rts nearly 26,
rts $1.45 billi
ates $62.5 m
AREA OF IMPA
OUTPUT($M)
T & INDUCED OU
UTPUT ($M)
MPLOYMENT (JO
ARNINGS ($M)
AX REVENUES
ESI (2013)
e long‐term, S
t an infusion
n additional a
fusion of addi
he long term
meet;
gion will grad
, economicall
ommonwealt
usinesses gen
onomic and fis
capital need w
ase. If unaddr
ngs in the sho
riented comm
on:
ty of Philadel
14 billion (14
eastern Penn
in property v
leave the reg
ommonwealt
ss economica
LPHIA & ECONSULT S
and econom
ments to rebu
nia but extend
billion in econ
,000 jobs acro
on in worker
illion in tax re
SEPTA SUPPOR
ACT
UTPUT ($M)
OBS)
SEPTA will not
of additional
nnual capital
itional capital
, SEPTA will b
dually experie
y productive
h will suffer f
nerate less tax
scal impacts o
will grow from
ressed, this m
ort‐run will co
munities – the
phia would lo
4 percent) of i
sylvania wou
value, as som
gion entirely;
h would lose
ally productiv
SOLUTIONS, INC. – AP
ic opportunit
uild the trans
ds across the
nomic output
oss the Comm
earnings – $
evenues for t
RTS NEARLY 26,0
PE
SEPTA CAPITAL OP
$289
$384
$673
5,065
$214
$11.9
t be able to a
resources, th
funding to gr
l funding:
be forced to g
ence a drama
urban core b
from the losse
x revenue and
of status quo
m $4.7 billion
means that 40
ost $400 millio
e City and inn
ose close to 6
its property v
ld lose close t
e City busine
and
nearly $100
e region.
PRIL 2013
6 | P a g e
ties. Daily tran
it system hav
entire Comm
across the Co
monwealth;
56,389 per jo
he Commonw
000 JOBS ACROS
ENNSYLVANIA
SEPTA PERATIONS
$920
$1,613
$2,533
20,667
$1,237
$50.6
fford its curre
he system wil
radually work
gradually trun
tic erosion of
becomes unat
es in its most
d locate elsew
funding leve
to $8.5 billio
percent of th
on of investm
er ring subur
60,000 jobs, $
value;
to 25,000 job
sses and resid
million in inco
nsit operation
ve an econom
monwealth.
ommonwealt
ob supported;
wealth.
SS THE COMMO
SEPTA TOTAL
SCA
$1,209
$1,997
$3,206
25,732
$1,451
$62.5
ent levels of s
ll begin to shr
k off its backl
ncate its syste
f jobs, tax rev
ttractive to bu
economically
where.
ls are modele
on by 2032, or
he system wo
ments. Under
bs – would fu
$289 million in
bs, $96 million
dents would
ome and sale
ns, procurem
mic ripple effe
th;
; and
ONWEALTH
SOUTH
SEPTA APITAL
SEOPERA
$265
$305 $
$570 $
4,079 1
$170 $
n/a
service at sta
rink. SEPTA n
og over 20 ye
em and elimin
venues, and p
usiness and r
y productive
ed based on S
r roughly 40 p
ould ultimate
r this scenario
uel another ro
n annual tax
n in tax reven
relocate to th
es tax revenue
ent of goods
ect that is con
HEAST PA
EPTA ATIONS
SEPTTOTA
$920 $1,
$1,586 $1,
$2,506 $3,
19,971 24,
$1,201 $1,
n/a
tus quo capit
eeds approxi
ears.
nate services
property value
residents; and
region, as res
SEPTA’s estim
percent of SE
ly be eliminat
o, a mass mig
ound of regio
revenues, an
nue, and more
he suburbs, w
es from a grid
and
ncentrated
TA AL
,185
,892
,077
,050
,371
n/a
tal funding
mately
to make
es as its
d
sidents
mate that
PTA’s $21
ted; $100
gration
onal
d more
e than $8
while many
dlocked
EC
It
go
ex
ga
CONOMY LEAGUE OF
is important
ood repair alo
xtension proj
as. Costs asso
F GREATER PHILADEL
LONG‐TER
CITY OF PH
SUBURBAN
Source: ES
to note that
one, and doe
ects, nor doe
ociated with a
LPHIA & ECONSULT S
RM ECONOMIC &
(40
HILADELPHIA
N/COMMONWE
I (2013)
SEPTA’s leve
s not take int
es it take into
additional, ele
SOLUTIONS, INC. – AP
& FISCAL LOSSES
0 PERCENT SERV
JOBS
EARN
PRO
WAG
SALE
PRO
TOTA
EALTH
JOB
EARN
PRO
PRO
INCO
SALE
TOTA
l of funding n
to account ad
account the
ective project
PRIL 2013
7 | P a g e
S FROM STATUS
VICE REDUCTION
EC
S
NINGS
PERTY VALUE
TA
GE TAX
ES TAX
PERTY TAX
AL TAX
EC
LOSS (SUBURBA
NINGS LOSS (SU
PERTY VALUE (S
TA
PERTY TAX (SUB
OME TAX (PA)
ES TAX (PA)
AL LOSS (PA)
need presente
ditional need
impact of ma
ts would subs
S QUO FUNDING
N SCENARIO)
CONOMIC LOSS
AX REVENUE LOS
CONOMIC LOSS
AN)
UBURBAN)
SUBURBAN)
AX REVENUE LOS
BURBAN)
ed in this repo
ds associated
andates, such
stantially add
G LEVELS ARE SE
SES
(59
$(2,355,277
$(14,295,992
SSES
$(88,558
$(11,776
$(188,707
$(289,041
SES
(24
$(1,631,078
$(8,443,067
SSES
$(96,250
$(50,074
$(48,932
$(99,006
ort is associat
with service
h as a bus flee
to SEPTA’s to
EVERE
9,458)
7,338)
2,490)
8,428)
6,387)
7,101)
1,915)
4,772)
8,911)
7,700)
0,972)
4,123)
2,367)
6,490)
ted with the s
expansion, su
et conversion
otal funding n
state of
uch as rail
to natural
need.
EC
TTA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
TA
CONOMY LEAGUE OF
TABLEOFABLE 1: PENNS
ABLE 2: SOUTH
ABLE 3: SOUTH
ABLE 4: SOUTH
ABLE 5: SOUTH
ABLE 6: SOUTH
ABLE 7: SOUTH
ABLE 8: SOUTH
ABLE 9: SOUTH
ABLE 10: SOUT
ABLE 11: POST
ABLE 12: ARRA
ABLE 13: BREA
ABLE 14: CHAN
ABLE 15: SEPTA
ABLE 16: PROJE
ABLE 17: PEER
ABLE 18: PEER
ABLE 19: PEER
ABLE 20: SEPTA
ABLE 21: OPER
ABLE 22: SEPTA
ABLE 23: SEPTA
ABLE 24: ANNU
ABLE 25: SEPTA
ABLE 26: OPER
ABLE 27: ANNU
ABLE 28: ANNU
ABLE 29: ANNU
ABLE 30: ANNU
ABLE 31: ANNU
ABLE 32: SUMM
ABLE 33: SUMM
ABLE 34: LONG
ABLE 35: LONG
F GREATER PHILADEL
TABLESSYLVANIA MOT
HEAST PA SHAR
HEAST PA SHAR
HEAST PA SHAR
HEAST PA SHAR
HEAST PA SHAR
HEAST PA SHAR
HEAST PA SHAR
HEAST PA SHAR
THEAST PA SHA
ACT 44 SELECT
A FUNDS ALLOC
KDOWN OF SE
NGE ORDER RA
A COST SAVING
ECT MANAGEM
AGENCY CUST
AGENCY OPER
AGENCY CAPIT
A SHARE OF ST
RATING METRIC
A COMPOSITIO
A CAPITAL EXP
UAL ECONOMI
A OPERATING
RATING EMPLO
UAL EMPLOYM
UAL EARNINGS
UAL ECONOMI
UAL FISCAL IMP
UAL FISCAL IMP
MARY OF SEPT
MARY OF SEPT
G‐TERM ECONO
G‐TERM FISCAL
LPHIA & ECONSULT S
TOR LICENSE FU
RE OF GAS TAX
RE OF OPERATO
RE OF VEHICLE
RE OF MOTOR
RE OF STATE H
RE OF STATE H
RE OF TOTAL ST
RE OF TOTAL ST
ARE OF ALLOCA
TED SEPTA SER
CATED IN PROP
EPTA ARRA EXP
ATES FOR CONS
GS ON SAMPLE
MENT MANPOW
TOMER SATISFA
RATING FUNDS
TAL BUDGETS
TATE TRANSIT F
CS FOR SEPTA V
ON OF DEPART
ENDITURES BY
C IMPACT OF S
EXPENSES WIT
OYEE HEADCOU
MENT IMPACTS
S IMPACTS OF S
C IMPACT OF S
PACT OF SEPTA
PACT OF SEPTA
TA’S ECONOMI
TA’S ECONOMI
OMIC LOSSES F
L IMPACTS FRO
SOLUTIONS, INC. – AP
UND (MLF) SUM
X REVENUE (FY2
OR LICENSE FE
REGISTRATION
LICENSE FUND
IGHWAY, ROA
IGHWAY & BRI
TATE ROAD &
TATE PUBLIC T
ATED STATE TR
RVICE IMPROV
PORTION TO A
PENDITURES (2
STRUCTION CO
E OF FEDERALL
WER SAVINGS
ACTION SURVE
S EXPENDED &
NORMALIZED
FUNDING & PA
VS. OTHER PA
MENTAL CAPIT
Y INDUSTRY (FY
SEPTA’S CAPITA
TH ADJUSTMEN
UNT BY DEPART
OF SEPTA OPE
SEPTA OPERAT
SEPTA’S OPERA
A’S CAPITAL IN
A’S OPERATION
C & FISCAL IM
C & FISCAL IM
FROM 40 PERC
OM 40 PERCENT
PRIL 2013
8 | P a g e
MMARY (FY20
2010‐2011)
ES (FY2010‐20
N FEES (FY2010
D REVENUES (F
D & BRIDGE CA
IDGE MAINTEN
BRIDGE EXPEN
TRANSPORTATI
RANSPORTATIO
EMENTS
GENCY CAPITA
2010)
ONTRACTS (201
LY FUNDED PRO
(2008‐2013)
EY RESULTS (20
RIDERSHIP (FY
BY UNITS OF S
ASSENGERS (FY
TRANSIT AGEN
TAL INVESTME
Y2008‐2012, AV
AL INVESTMEN
NTS (FY2013)
TMENT (FY201
ERATIONS
TIONS
ATIONS
NVESTMENTS O
NS ON THE CO
PACTS ON THE
PACTS ON SOU
CENT SERVICE E
T SERVICE ELIM
10‐2011)
011)
0‐2011)
Y2010‐2011)
APITAL EXPEND
NANCE EXPEND
NDITURES (FY2
ION EXPENDIT
ON EXPENDITU
AL BUDGETS (2
10‐2012)
OJECTS
012)
Y2011)
SERVICE
Y2010‐2012)
NCIES (FY2010‐
ENT (FY2008‐20
VERAGE)
NT
13)
ON THE COMM
MMONWEALT
E COMMONWE
UTHEASTERN P
ELIMINATION S
MINATION SCE
DITURES BY SO
DITURES (FY20
010‐2012)
TURES (FY2010‐
URES (FY2010‐2
2010)
‐2011)
012, AVERAGE
MONWEALTH
TH
EALTH
PENNSYLVANIA
SCENARIO
ENARIO
OURCE (FY2010
010‐2012)
‐2012)
2012)
)
A
11 12 12 13 14
0‐2012) 15 15 15 16 17 24 27 28 28 29 29 34 34 36 37 38 40 40 42 44 45 45 46 46 47 47 47 47 57 58
EC
TFI
FI
FI
FI
FI
FI
FI
FI
FI
FI
FI
FI
FI
FI
FI
FI
FI
FI
FI
FI
FI
CONOMY LEAGUE OF
TABLEOFGURE 1: SEPTA
GURE 2: CUST
GURE 3: SEPTA
GURE 4: SEPTA
GURE 5: PUBL
GURE 6: PA SA
GURE 7: SEPTA
GURE 8: PEER
GURE 9: PEER
GURE 10: PEER
GURE 11: PEER
GURE 12: PEER
GURE 13: PEER
GURE 14: PEER
GURE 15: PEER
GURE 16: MET
GURE 17: REPL
GURE 18: U.S.
GURE 19: SEPT
GURE 20: ANN
GURE 21: PRO
F GREATER PHILADEL
FIGURESA CAPITAL EXP
OMER SATISFA
A RIDERSHIP (F
A PROJECTED S
IC FUNDS TRA
ALES TAX REVE
A CAPITAL FUN
GROUP AVERA
GROUP HEAVY
R GROUP COM
R GROUP LIGH
R GROUP BUS
R AGENCY SHA
R AGENCY CAP
R AGENCY SHA
THODOLOGY TO
LACEMENT VA
TRANSIT INDU
TA’S MAINTEN
NUAL INCREASE
OJECTED ANNU
LPHIA & ECONSULT S
SENDITURES (FY
ACTION & CAPI
FY2000‐2012)
STATE OF GOO
NSFERRED TO
NUE (1980‐201
NDING TRENDL
AGE ANNUAL C
Y RAIL FARE RE
MMUTER RAIL F
T RAIL FARE RE
FARE RECOVER
ARE OF OPERAT
PITAL BUDGETS
ARE OF CAPITA
O CALCULATE
ALUE OF SEPTA’
USTRY PROJECT
ANCE COST PE
E IN REGIONAL
AL INCREASE I
SOLUTIONS, INC. – AP
Y2004‐2012)
ITAL INVESTME
OD REPAIR NEE
SEPTA PRIOR T
12‐Q3)
LINE (FY1997‐2
CHANGE IN RID
ECOVERY (FY20
FARE RECOVER
ECOVERY (FY20
RY (FY2011)
TING FUNDS BY
S(FY2012‐2013
L FUNDS BY SO
ECONOMIC IM
’S ASSETS ($ B
TED STATE OF
ER MILE VS. BU
L TRAVEL COST
N REGIONAL T
PRIL 2013
9 | P a g e
ENT (FY2005‐2
DS (FY2012‐20
TO ACT 44
012)
DERSHIP (FY200
011)
RY (FY2011)
011)
Y SOURCE (FY2
3)
OURCE (FY2007
MPACTS OF SEP
ILLIONS, CURR
GOOD REPAIR
US AGE
TS FROM INCRE
TRAVEL COSTS
2012)
030)
02‐2012)
2011)
7‐2011 AVERAG
PTA’S CAPITAL
RENT DOLLARS)
(FY2008‐2012
EMENTAL SEPT
THROUGH 203
GE)
INVESTMENTS
)
2)
TA SERVICE ELI
32
S
IMINATION
19 20 21 22 23 24 25 30 31 32 32 33 35 36 37 41 53 54 55 56 57
EC
STTh
a
ou
ec
co
So
of
Co
1Th
hi
re
ov
Th
th
lin
st
re
In
V
fo
Pl
tr
1Th
Fu
rig
op
Th
Pe
m
br
fu
fe
Pe
1 D
CONOMY LEAGUE OF
SECTION1TRANSPORhe five count
major role in
utput and rep
conomic prod
omprehensive
outheastern P
f this section
ommonwealt
1.1OVERVIEhe Pennsylva
ighways, pub
egistration, op
versaw more
he majority o
he Pennsylvan
near road mil
tate is divided
elated service
n southeaster
alley Regiona
or the region.
lan (TIP), whi
ransportation
.1‐1FUNDINGhe primary so
und (MLF). Th
ghts‐of‐way,
perations and
he MLF is cap
ennsylvania S
maintenance o
ridges, includ
unding at bot
ederal funds a
ennDOT budg
DVRPC is a bi‐state
F GREATER PHILADEL
1:SOUTHERTATIONies of southe
n Pennsylvania
presents 32 p
ductivity of so
e network of
Pennsylvania’
is to evaluate
th’s transport
EWOFTRANnia Departme
lic transporta
perator licens
than $6 billio
of the state fu
nia State Legi
les, populatio
d into eleven
es. The five co
rn Pennsylvan
al Planning Co1 DVRPC wor
ch guides the
n – roads, tran
GFORHIGHWAource of fund
he MLF funds
as well as avi
d subsidizes c
pitalized prim
State Constitu
of roads and b
ding flexing a
h the state an
are used for c
get document
e agency that also
LPHIA & ECONSULT S
EASTERNNREVENUastern Penns
a’s economy.
percent of its
outheastern P
transportatio
’s density and
e the extent t
tation related
NSPORTATIOent of Transp
ation, airports
sing, and prov
on in state an
unding provid
slature. Thes
on, daily vehic
engineering d
ounties of sou
nia (PennDOT
ommission (D
ks with Penn
e allocation of
nsit, bicycle, p
AYS,ROADS,&ing for roads
capital inves
iation, licensi
construction a
arily through
ution prohibit
bridges. The s
portion of tho
nd federal lev
capital investm
ts identify fou
includes Burlingto
SOLUTIONS, INC. – AP
NPENNSYLUES&EXPylvania – Buc
. The region is
population, w
Pennsylvania
on assets that
d economic p
to which sout
d revenue and
ONFUNDINGortation (Pen
s, railroads, p
vides funding
nd federal fun
ed for highwa
e formulas ar
cle miles trave
districts that
utheastern Pe
T District 6), tr
VRPC), the fe
DOT and loca
f formula‐bas
pedestrian, an
&BRIDGESand bridges i
stment in and
ng, and safet
and maintena
state‐levied
ts the use of M
state has mor
ose funds to
vel. By in large
ment.
ur categories
on, Camden, Glouc
PRIL 2013
10 | P a g e
LVANIA’SPENDITURcks, Chester, D
s responsible
while being si
is largely a fu
t keep the reg
productivity b
theastern Pen
d expenditure
INPENNSYLnnDOT) mana
ports and wat
g for State Po
nds.
ays, roads, an
re based on a
eled (DVMT),
provide engin
ennsylvania a
ransportation
ederally‐mand
al governmen
sed and discre
nd freight.
in the Commo
d maintenance
y activities. It
ance of locally
taxes, fees, a
MLF funds for
re discretion
public transit
e, state funds
of funding: s
cester, and Merce
SSHAREORESDelaware, Mo
for 40 perce
tuated on jus
unction of its
gion moving.
enefits the en
nnsylvania is a
es.
LVANIAages the prog
terways. The
lice. In Fiscal
nd bridges is b
a varying com
, bridge “deck
neering, main
re contermin
n capital inves
dated metrop
ts to develop
etionary fede
onwealth of P
e of state‐ow
t also funds S
y‐owned road
and the pass t
r anything ot
in allocation
t. Formulas al
s are used for
state, federal,
er counties in New
OFSTATE
ontgomery, a
nt of Pennsyl
st five percen
density, whic
ntire Commo
a net contrib
rams and pol
department a
Year (FY) 201
based on form
mbination of m
k” area, and s
ntenance, con
nous with Pen
stment is guid
politan planni
p the Transpo
eral and state
Pennsylvania
wned roads an
State Police hi
ds.
through of fe
her than capi
of federal fun
lso guide the
r maintenanc
, restricted, a
w Jersey.
and Philadelp
lvania’s econo
nt of its total l
ch is supporte
onwealth. The
utor to the
licies affectin
also oversees
12‐2013, the
mulas establi
metrics, includ
state of repai
nstruction, tr
nnDOT Distric
ded by the De
ing organizat
ortation Impro
e funds for mu
is the Motor
nd bridges, pu
ighway patro
deral funds. T
ital investmen
nds for roads
majority of t
ce expenditur
nd augmenta
hia – play
omic
and. The
ed by a
e purpose
g
s vehicle
agency
shed by
ding:
r. The
affic, and
ct 6.
elaware
ion (MPO)
ovement
ultimodal
r License
urchase of
l
The
nt in and
and
ransit
es, while
ation.
EC
Ta
1Th
op
Th
St
1A
va
tr
2 T
3 Wre
CONOMY LEAGUE OF
‐ Sta‐ Fe‐ Re
an‐ Au
sta
able 1 summa
.1‐2FUNDINGhe Pennsylva
perating and
‐ Dedic
‐ State
‐ Public
fee), c
‐ Capita
hese sources
tate funds are
1.2SOUTHEAnalysis finds t
ariety of data
ransit revenue
This analysis does While sales tax revmittances are not
F GREATER PHILADEL
ate: revenuesederal: pass‐thestricted: revend ugmentation:ate revenues.
arizes MLF re
TABL
SUB‐T
LIQ
SUB‐T
SUB‐T
SUB‐T
TOTA
Sourc
GFORPUBLICnia Public Tra
capital invest
ated 4.4 perc
Lottery, prov
c Transportati
car lease tax (
al facilities fun
provided $1.
e also augme
ASTERNPENthat 89 perce
a limitations m
es by geograp
not include federavenues are availab representative of
LPHIA & ECONSULT S
s from taxes ahrough fundsenues raised
: revenues su.
venue source
LE 1: PENNSYLVA
TOTAL STATE FU
QUID FUEL TAXES
TOTAL FEDERAL
TOTAL RESTRICT
LIQUID
OTHER REVENU
TOTAL AUGMEN
AL MLF REVENUE
e: Pennsylvania
TRANSITansportation
tment. Reven
cent of sales t
viding funding
ion Assistanc
(3 percent), a
nd bond proc
06 billion in s
nted by feder
NNSYLVANIAent of state‐ge
make it impos
phy (i.e., coun
al pass‐through fuble at the county lef where revenues
SOLUTIONS, INC. – AP
and fees levies received by through state
ch as institut
es by each of
ANIA MOTOR LI
SOURCES
UNDS
S (INCLUDES OIL
VEHICLE R
PA TU
FUNDS
TED REVENUES
FUELS TAX (OIL
ES (AVIATION FE
NTATIONS
ES
State Budget (F
Trust Fund is
nue sources in
tax revenue;
g for free or d
e Fund, capit
nd sales tax r
ceeds.
statewide tra
ral funds, loca
A’SCONTRIBeneratedMLF
ssible to attrib
nty or region)
nds. evel, the figures reare raised.
PRIL 2013
11 | P a g e
ed by the statthe state to se‐levied taxes
ional billings
these catego
ICENSE FUND (M
S
COMPANY FRAN
OPERATOR
REGISTRATION A
OTHER REGISTR
RNPIKE ANNUAL
OTHE
COMPANY FRAN
REGISTR
EES, HAULING P
FY2010‐2011)
the primary
nclude:
iscounted tra
alized by a tir
revenues (0.9
nsit funding i
al funds, and
BUTIONTOSF revenues ca
bute the rem
). 3
epresent collection
te; support all ms and fees bu
or fees credit
ories:
MLF) SUMMARY
R
$
NCHISE TAX)
RS' LICENSES
AND TITLING
RATION FEES
L PAYMENTS
ER REVENUE
$
$
NCHISE TAX)
RATION FEES
ERMIT FEES)
$
$
source of sta
ansportation
re fee ($1 per
947 percent);
in FY2010‐20
passenger fa
STATETRANn be attribute
aining 11 per
ns by county of rem
odes of transut allocated fo
ted to a spec
Y (FY2010‐2011)
REVENUE ($000
$2,521,275
$ 1,218,635
$61,477
$692,351
$137,724
$200,000
$211,088
$1,402,877
$883,409
$862,047
$11,461
$9,901
$224,176
$5,031,737
te funding fo
for senior cit
r tire), car ren
and
11 and $1.1 b
ares.
NSPORTATIOed to a specif
rcent of MLF f
mittance rather th
sportation; or a specific p
ific appropria
0)
5
7
1
4
0
8
7
1
1
or public trans
izens;
ntal fee ($2 pe
billion in FY20
ONFUNDSfic geographic
funds and all
han by county of s
purpose;
ation of
sit
er day
011‐2012.
c area. 2 A
public
ale, so county
EC
1To
tr
Pe
oc
so
20
Be
as
co
do
no
in
re
1D
co
by
de
co
1V
pe
sc
so
so
CONOMY LEAGUE OF
.2‐1LIQUIDFo determine g
raveled (DVM
ennsylvania. T
ccurred in Dis
outheastern P
011.
ecause Oil Co
ssumptions: f
onsistent betw
oes not take
or does it tak
ncluding SEPT
egion and stat
.2‐2OPERATriver license f
ommercial au
y‐county data
etermine the
ontributed 29
.2‐3VEHICLEehicle registr
er registratio
chedules to e
outheastern P
outheastern P
F GREATER PHILADEL
FUEL(“GAS”)gas tax reven
MT) data in Pe
The most rec
strict 6. Table
Pennsylvania
ompany Franc
first, that bot
ween southe
into account
ke into accoun
TA. These veh
te.
ORS’LICENSESfees in Penns
utomobile or
a of licensed d
regional sha
9 percent ($6
TA
EREGISTRATIOation fees in
n. Revenues w
ach vehicle ty
Pennsylvania
Pennsylvania
LPHIA & ECONSULT S
TAXREVENUue generated
nnDOT’s Dist
cent DVMT da
e 2 shows tha
contributed 2
TABLE 2: SOUT
($00
SOUTHEA
PENNSYL
Source: P
chise Tax reve
h revenue str
astern Penns
vehicles that
nt the propor
icles are assu
Ssylvania vary b
motorcycle o
drivers. This a
re. Table 3 sh
1 million) of s
ABLE 3: SOUTHE
SOUT
PENN
Sourc
ON&TITLINGPennsylvania
were allocate
ype and weig
to determine
contributed 2
SOLUTIONS, INC. – AP
Ed in southeast
rict 6, which
ata from 2010
t using this as
24 percent (n
THEAST PA SHA
00) DVM(00
AST PA 67
LVANIA 277
PennDOT, Econo
enues are rep
reams are dri
sylvania and t
travel in sou
rtionate share
umed to repre
based on veh
owners. Reven
analysis then
hows that bas
statewide ope
EAST PA SHARE
($000)
THEAST PA
NSYLVANIA
ce: PennDOT, Ec
GFEESa vary based o
ed by collectin
ht. The analy
e the regiona
21 percent ($
PRIL 2013
12 | P a g e
tern Pennsylv
encompasses
0 shows that 2
s an approxim
nearly $300 m
RE OF GAS TAX
MT 00)
GAS TAREVEN
7,496 $296,
7,293 $1,218,
omy League
ported as part
ven by DVMT
he rest of the
theastern Pe
e of DVMT by
esent a neglig
hicle type. Of
nues from the
aggregated t
sed on this m
erator license
OF OPERATOR L
REVENUE S
$ 17,821
$ 61,477
conomy League
on vehicle typ
ng data on ve
ysis then aggr
l share. Table
$145 million)
vania, this an
s the five‐cou
24 percent of
mation of gas
million) of stat
REVENUE (FY20
AX NUE
SOUTHEPA SHA
,628 24
,635
t of liquid fue
T; and second
e state. It sho
nnsylvania bu
y vehicles that
gible share of
all licenses is
ese licenses w
the five count
ethodology, s
e revenue.
LICENSE FEES (FY
SOUTHEAST PA SHARE
29.0%
pe and size, w
ehicle registra
egated result
e 4 shows tha
of statewide
alysis examin
unty area of s
f statewide v
tax receipts
tewide gas ta
010‐2011)
EAST ARE
4.3%
el taxes, this a
d, that vehicle
ould also be n
ut fuel outsid
t do not pay l
f total vehicle
sued, 96 perc
were allocate
ties of southe
southeastern
Y2010‐2011)
A
%
with costs ran
ations by cou
ts from the fiv
t based on th
registration f
ned daily vehi
outheastern
ehicle miles t
in the region,
ax revenue in
analysis requi
e fuel econom
noted that thi
de of the five
liquid fuels ta
e miles across
cent were to
d by examini
eastern Penns
n Pennsylvani
ging from $9
nty and by ap
ve counties o
his methodolo
fee revenue.
icle miles
traveled
,
FY2010‐
ires two
my is
s analysis
counties,
ax,
the
non‐
ng county‐
sylvania to
a
to $1,500
pplying fee
of
ogy,
EC
Th
do
an
1Tu
ag
th
re
20
de
1Re
tr
re
av
of
1Ta
st
st
Pe
CONOMY LEAGUE OF
his analysis re
oes not includ
nalysis assess
.2‐4PENNSYLurnpike tolls a
ggregating gr
he five counti
evenues. App
011; applying
esignated Tur
.2‐5RESTRICestricted reve
ransportation
evenues are r
viation and h
f that total is
.2‐6TOTALEable 5 provid
tate‐generate
tate due to da
ennsylvania a
F GREATER PHILADEL
TAB
equires two a
de weight, an
ses vehicles li
LVANIATURNare collected
oss toll reven
es accounted
roximately on
g the same pe
rnpike revenu
CTEDREVENUEenues are des
n, these funds
raised throug
auling permit
generated by
ESTIMATEDREes a summary
ed revenue, a
ata limitation
accounts for 2
LPHIA & ECONSULT S
BLE 4: SOUTHEAS
($
SOUTH
PENNS
Source
assumptions:
nd therefore t
sted as “othe
PIKEPAYMENat interchang
nue for each o
d for 35 perce
ne‐quarter ($
ercentage of t
ue was $69.8
ESsignated by la
s are deposite
h the Oil Com
t fees. Restric
y this region,
EGIONALMOT
y of MLF reve
s well as the
s. Of those fu
24 percent of
SOLUTIONS, INC. – AP
ST PA SHARE OF
$000)
HEAST PA
SYLVANIA
e: PennDOT, Econ
first, fees for
these vehicle
er” at the pass
NTSges across th
of the exits in
ent ($277 mill
$200 million)
total Turnpike
million.
aw or adminis
ed in the MLF
mpany Franch
cted revenues
based on pro
TORLICENSEFenue streams
remaining 11
unding source
f revenues.
PRIL 2013
13 | P a g e
F VEHICLE REGIS
REVENUE
$145,507
$692,351
nomy League
r buses and lim
s are all asses
senger vehicl
e state. The r
n southeaster
lion) of the ap
of Turnpike r
e revenues, th
strative decis
F but reported
ise Tax, 1 per
s total more t
oportionate s
FUNDREVENU analyzed geo
1 percent that
es that can be
STRATION FEES
SOUTHEAST PASHARE
21.0%
mousines are
ssed at the lo
le rate of $36
regional share
n Pennsylvan
pproximately
revenues wer
he region’s a
sion for specif
d separately.
rcent from re
than $883 mi
hare of DVMT
UESographically,
t cannot be a
e estimated o
(FY2010‐2011)
A
%
e weight‐base
owest rate of
6.
e of toll reven
nia. In 2012, t
y $800 million
e transferred
pproximate s
fic purposes.
Ninety‐eight
egistration fee
llion, and an
T.
which repres
attributed to a
on a geograph
ed, but availab
$54. Second,
nue is assesse
olls collected
n in annual Tu
d to the MLF i
share of MLF‐
In the case o
percent of th
es, and 1 perc
estimated $2
sent 89 perce
a particular p
hic basis, sout
ble data
the
ed by
d at exits in
urnpike
n FY2010‐
‐
f
hese
cent from
209 million
ent of MLF
art of the
theastern
EC
1So
Pe
an
op
1In
br
ap
CA
So
ex
Pe
su
ca
sh
hi
so
pe
4 Afuno5 M
6 A(A
CONOMY LEAGUE OF
GEOGRAPMLF REVE
NON‐GEOBASED ML
TOTAL
Note: An “Source: Pe
1.3SOUTHEAoutheastern P
ennDOT’s cap
nalysis does n
perations, wh
.3‐1MOTORLn FY2010‐201
ridges. (Note
pproximately
APITAL
outheastern P
xamining Dela
ennDOT to D
ubstantial sha
apital expend
hare of total s
ighways, whic
outheastern P
ercent.6
Alternatively, this ands that have beeot used, we have cMixed funds includAlthough not displARRA) federal fund
F GREATER PHILADEL
TABLE
PHICALLY BASEDENUES
OGRAPHICALLY LF REVENUES
“n/a” refers to coennDOT, Econom
ASTERNPENPennsylvania’
pital, mainten
not include ra
hich cannot b
LICENSEFUND1, the MLF pr
: this total inc
y $880 million
Pennsylvania’
aware Valley
istrict 6.4 Fed
are for highw
ditures by stat
state highway
ch cannot be
Pennsylvania’
analysis could useen obligated or encchosen to rely on “de a combination oayed above, figureing made for high
LPHIA & ECONSULT S
5: SOUTHEAST
D
LIQUID
OPERAT
VEHICLE
PA TUR
MLF RES
SUB‐TO
SUB‐TO
MLF REV
omponents of thmy League
NNSYLVANIA’s share of Co
nance, and op
ail freight, inte
e assigned to
D(HIGHWAYSrovided appro
cludes both s
n for support a
’s share of sta
Regional Plan
eral funding
ay and bridge
te, federal, an
y and bridge i
allocated by
’s share of sta
“allocated” fundicumbered, while ““actual” funds for of federal and states for FY2008‐200er funding levels i
SOLUTIONS, INC. – AP
PA SHARE OF M
($000)
FUEL TAXES
TORS' LICENSES
E REGISTRATION
NPIKE ANNUAL
STRICTED REVEN
OTAL
OTAL
VENUES (STATE
he MLF that cann
A’SSHAREOFommonwealth
perating expe
ercity bus ser
o geography d
S,ROADS,&Boximately $4
tate and pass
activities, inc
ate highway,
nning Commi
is included be
e capital inves
nd mixed fun
investment (e
county or reg
ate highway,
ng figures. As the “allocated” have bthis analysis. te dollars. 9 and FY2010‐201n those years, but
PRIL 2013
14 | P a g e
MOTOR LICENSE
N & TITLING
PAYMENTS
NUES
‐GENERATED)
not be geograph
FSTATETRh transportat
enditures for h
rvice, aviation
due to data lim
BRIDGES)billion for sta
sed‐through f
luding state p
road, and bri
ission (DVRPC
ecause the fe
stment. Table
ds5 for FY201
exception: fed
gion due to d
road, and bri
names indicate, thbeen approved, bu
11 were also collect total shares were
FUND REVENUE
STATE REVENUE
$1,218,635
$61,477
$692,351
$200,000
$873,508
$3,045,971
$358,713
$3,404,684
hically attributed
RANSPORTATtion investme
highways, roa
n, state police
mitations.
ate and locally
federal fundin
police and de
idge investme
C) data on “ac
ederal govern
e 6 shows sou
10‐2011 and F
deral pass‐th
data limitation
dge capital in
he difference betwut not yet used. Be
cted for this analye similar – 18.6 pe
ES (FY2010‐2011
SOUTHEAST PCONTRIBUTIO
$296,62
$17,82
$145,50
$69,80
$209,29
$739,05
N/
N/
d
TIONINVESTent was estim
ads, bridges,
e, or categori
y‐owned high
ng). MLF reve
ebt service.
ent for capita
ctual” capital
ment pass‐th
utheastern Pe
FY2011‐2012
rough fundin
ns). Over thes
nvestment wa
ween these figureecause it is possibl
sis. American Recoercent and 18.3 pe
1)
PA ON
SOUTHEASSHARE
28
21
07
00
98
54
/A
/A
TMENTmated by analy
and mass tra
es related to
hways, roads
enues also su
al was determ
funding prov
hrough funds
ennsylvania’s
and the repr
ng for intersta
se two fiscal y
as between 1
s is that “actual” re for funds to be a
overy and Reinvesercent, respectivel
ST PA E
24%
29%
21%
35%
24%
24%
N/A
N/A
yzing
nsit. This
general
and
pport
mined by
vided by
present a
s total
esentative
ate
years,
18‐20
represent allocated but
stment Act y.
EC
O
D
Pe
as
re
al
to
so
SU
By
of
pe
1Th
CONOMY LEAGUE OF
TABLE 6: S
($0
STATE
FEDER
MIXED
TOTAL
Source*Feder
OPERATIONS &
ata for expen
ennDOT. This
ssist with loca
estricted reve
llocated using
otal O&M and
outheastern P
TAB
UMMARY
y combining t
f statewide in
ercent. This s
.3‐2PUBLICThe Pennsylva
‐ Transi‐ Asset ‐ Capita‐ New I‐ Progra
transp
F GREATER PHILADEL
SOUTHEAST PA
000) SOUTP
$1
RAL $2
D
L $4
e: DVRPC ral FY (October 1
& MAINTENA
nditures on hi
s represents f
ally‐owned in
enue streams
g formulas ba
d southeaster
Pennsylvania’
BLE 7: SOUTHEA
the capital inv
nvestment in
share is consid
TABLE 8: SOU
TRANSITnia Public Tra
it Operating AImprovemenal Improvemenitiatives (Unams of Statewportation for
LPHIA & ECONSULT S
SHARE OF STAT
FY 2
HEAST PA
PENN
21,750
89,165 $
$0
10,915 $
1 – September 30
ANCE
ighway, road,
funding provid
nfrastructure.
that have be
ased on linear
rn Pennsylvan
’s share of sta
AST PA SHARE O
($
SOUTHEAST P
PENNSYLVAN
SOUTHEAST P
Source: PennD
vestment and
highways, ro
derably lowe
UTHEAST PA SH
($
SOUTHEAST P
PENNSYLVAN
SOUTHEAST P
Source: Econo
ansportation
Account; nt Program; ent Program; nfunded as ofwide Significapersons with
SOLUTIONS, INC. – AP
TE HIGHWAY, RO
2010‐11
SYLVANIA SOP
$606,945
$1,414,370
$65,171
$2,086,486
0)
, and bridge o
ded for maint
It includes ba
een carved ou
r road mileag
nia’s share fo
ate highway,
F STATE HIGHW
$000)
PA
NIA
PA SHARE
DOT
d O&M, Table
ads, and brid
r than the reg
HARE OF TOTAL S
000)
PA
IA
PA SHARE
my League
Trust fund pr
f 2011); andnce (Technica disabilities; m
PRIL 2013
15 | P a g e
OAD, & BRIDGE
OUTHEAST A SHARE
SO
20.1%
20.4%
0%
19.7%
operations an
tenance and
ase funding f
ut specifically
e, population
r FY2010‐201
road, and bri
WAY & BRIDGE M
FY 2010
$24
$1,67
e 8 provides a
ges for FY201
gion’s 24 perc
STATE ROAD &
FY 2010‐1
$659
$3,758
1
rovides fundin
al assistance match on New
CAPITAL EXPEN
OUTHEAST PA
P
$127,394
$286,278
$978
$414,650
nd maintenan
repairs and f
from the MLF
for counties
n, bridge “dec
11 and FY201
dge O&M wa
MAINTENANCE E
0‐11 FY 20
48,395 $
71,972 $1
14.9%
an estimate o
10‐2011 and
cent share of
BRIDGE EXPEND
11 FY 20
9,309
8,458 $4
17.5%
ng through fiv
and demonstw Freedom, J
NDITURES BY SO
FY 2011‐12
PENNSYLVANIA
$631,118
$1,510,164
$80,829
$2,222,111
nce (O&M) wa
unding provid
F as well as fu
and municipa
ck” area, and
1‐2012. Over
as approximat
EXPENDITURES (
011‐12
$270,444
1,792,758
15.1%
of southeaste
2011‐2012: a
f transportatio
DITURES (FY201
011‐12
$685,094
4,014,869
17.1%
ve separate a
tration projecJARC, and Key
OURCE (FY2010‐2
SOUTHEASTPA SHARE
8 20.2
4 19.0
9 1.2
1 18.7
as provided b
ded to munic
nding from se
alities. This fu
DVMT. Table
r these two fis
tely 15 perce
(FY2010‐2012)
rn Pennsylva
approximately
on‐related re
0‐2012)
accounts.
cts; rural ystone Rail Se
2012)
T
%
%
%
%
by
cipalities to
everal
unding is
e 7 shows
scal years,
ent.
nia’s share
y 17
evenues.
ervice).
EC
Th
ro
do
Ri
To
SE
SE
SE
de
ac
43
To
Pe
sh
sh
ab
sm
st
vs
st
CO
Co
Tr
In
“S
SU
Ta
20
7 NTrge
CONOMY LEAGUE OF
hese funds su
oute agencies
oor‐to‐door s
ide program)
o determine s
EPTA and com
EPTA
EPTA is by far
ensity of the
ccounts for 3
34 million un
o estimate th
ennDOT’s Bu
hared ride, an
hare of state t
ble to provide
maller share o
tatewide), wh
s. 25.0 percen
tatewide aver
OMMUNITY T
ommunity tra
ransport, Inc.
nc. in Montgo
Shared Ride”
UMMARY
able 9 shows
012, southea
TA
($000)
OPERATING
CAPITAL
OTHER
TOTAL
Source: PennDO* Includes $112
Note that ridershipansportation and enerated by differe
F GREATER PHILADEL
upport Pennsy
s provide regu
service on req
and persons
southeastern
mmunity tran
r the largest t
region it serv
2 percent of i
linked passen
he share of to
reau of Public
nd other (pro
transit fundin
e transit servi
of its operatin
hile at the sam
nt statewide)
rage of $2.66
TRANSPORTA
ansportation
., Rover in Ch
omery County
category).
aggregate sta
stern Pennsy
ABLE 9: SOUTHE
SEPTA CT
$497,867
$133,462
$21,421
$652,750
OT, Bureau of Puthousand in “Fr
p counts, expensesdiffer slightly froment reporting meth
LPHIA & ECONSULT S
ylvania’s 36 f
ularly schedu
quest. State fu
with disabilit
n Pennsylvania
sportation op
transit agency
ves. Southeas
its population
nger trips stat
tal state tran
c Transportat
grams of stat
ng is well belo
ices at a lowe
ng budget fro
me time it ret
. As a result,
.7 (More info
ATION
companies o
ester County,
y. In Philadelp
ate funding fo
lvania receive
EAST PA SHARE O
OMMUNITY TRANSPORT
$121
$0
$14,367
$14,488
blic Transportatree Transit” prog
s and revenues prm figures presentehodologies.
SOLUTIONS, INC. – AP
fixed route tra
led transport
unds subsidiz
ties.
a’s share of s
perators with
y in the Comm
tern Pennsylv
n. SEPTA carr
tewide in FY2
sit funding th
tion. Figures a
tewide signific
ow its 77 perc
er cost than o
om the state t
turns a higher
SEPTA’s oper
rmation on co
perate in the
, Community
phia, SEPTA pr
or mass trans
ed 62 to 63 p
OF TOTAL STATE
FY 2010‐201
PA SOP
$766,562
$184,000
$109,872
$1,060,434
tion gram
esented in this seced in other parts of
PRIL 2013
16 | P a g e
ansit agencie
tation on desi
ze 85 percent
tatewide tran
in the five‐co
monwealth, w
vania account
ies 77 percen
2012).
hat SEPTA rec
are grouped i
cance from th
cent share of
other agencies
than the state
r share of its e
rating subsidy
omparative m
e four suburba
Transit of De
rovides comm
sit and comm
ercent of tota
E PUBLIC TRANS
11
OUTHEAST PA SHARE
65.0% $5
70.5% $
32.6%
62.9% $
ction are calculatef the report, which
s and 26 com
ignated route
t of the cost o
nsit funding, t
ounty area.
without peer
ts for just 5 p
nt of statewid
ceives, this an
into the follow
he accounts l
mass transit
s in the Comm
ewide averag
expenses thro
y per passeng
metrics in Sec
an counties in
elaware Coun
munity transp
munity transpo
al statewide p
SPORTATION EX
SEPTA COMTRA
513,309*
$138,090
$20,971
$672,370
ed based on data ph are based on da
mmunity trans
es while comm
of rides for se
this analysis a
based on the
percent of the
de mass trans
nalysis uses fig
wing categor
isted above).
riders, in par
monwealth. S
ge (45.4 perce
ough passeng
ger is $1.49, c
ction 3.3 of th
n the region:
nty, and Subu
portation serv
ort. In FY2010
public transp
XPENDITURES (F
MMUNITY ANSPORT
$112
$0
$15,374
$15,486 $1
provided by the Peta from the Nation
sit agencies. F
munity transi
nior citizens
aggregated fu
geographic s
e state’s land
it riders (333
gures provide
ies: operating
. SEPTA’s 61 p
rt because SE
SEPTA receive
ent vs. 50.1 pe
ger fares (42.
ompared to t
his report).
Bucks County
rban Transit
vices (funded
0‐2011 and FY
ortation fund
FY2010‐2012)
FY 2011‐2012
PA SOP
$790,236
$190,504
$125,511
1,106,251
ennDOT Bureau ofnal Transit Databa
Fixed
it provides
(Shared
unding for
size and
and yet
million of
ed by
g, capital,
percent
PTA is
es a
ercent
3 percent
the
y
Network,
under the
Y 2011‐
ding.
2
OUTHEAST PA SHARE
65.0%
71.0%
29.0%
62.2%
f Public ase and were
EC
1Ta
so
th
to
in
ge
HI
PU
TO
So
CONOMY LEAGUE OF
1.4TOTALTable 10 show
outheastern P
his report, in
otal state tran
nvestment; th
eographically
T
($00
IGHWAYS, ROAD
UBLIC TRANSPO
OTAL
ource: Economy
F GREATER PHILADEL
TRANSPORTAs combined g
Pennsylvania’
FY2010‐2011
nsportation fu
he remaining
y as well as ra
ABLE 10: SOUTH
0)
DS & BRIDGES
ORTATION
League
LPHIA & ECONSULT S
ATIONEXPEgeographically
’s share of tot
and FY2011‐
unding. The e
20 percent fu
il freight and
HEAST PA SHAR
SOUTHEAST PA
$659,309
$667,238
$1,326,547
SOLUTIONS, INC. – AP
ENDITURES(y based highw
tal state trans
‐2012, southe
estimates are
unds highway
aviation, stat
E OF ALLOCATED
FY 2010‐20
PENNSYLVAN
$3,758,4
$1,060,4
$4,818,8
PRIL 2013
17 | P a g e
(GEOGRAPHway, road, br
sportation fu
eastern Penns
based on app
y, road, and b
te police, deb
D STATE TRANS
011
NIA SOUTHEPA SHA
458 1
434 6
892 2
HICALLYBASidge, and tran
nding. Based
sylvania recei
proximately 8
ridge expend
bt service, and
PORTATION EXP
EAST ARE
SOUTP
17.5% $
62.9% $
27.5% $1,
SED)nsit funding t
d on the meth
ived approxim
80 percent of
ditures that ca
d general DO
PENDITURES (FY
FY 2
THEAST PA
PENN
685,094
687,856
,372,950
to estimate
hodologies de
mately 27 per
f actual transp
annot be allo
OT operations
Y2010‐2012)
2011‐2012
NSYLVANIA S
$4,014,869
$1,106,251
$5,121,120
escribed in
rcent of
portation
cated
.
SOUTHEAST PA SHARE
17.1%
62.2%
26.8%
EC
SA
se
al
re
be
co
D
pr
20
in
de
SE
st
Tr
Th
ti
an
te
Re
FY
al
Th
an
2Fr
pe
an
8 Abu9 U
CONOMY LEAGUE OF
SECTION2lthough SEPT
evere capital
lone meeting
eceived a sign
e permanent
onstrained fis
uring this thr
revious three
012 they wer
nfrastructure
ecline further
EPTA’s ability
tate and one
ransportation
he increase in
me. A large p
nticipated im
emporary infu
einvestment
Y2011. In con
lso allocated
his section ex
nalysis presen
‐ The ex
marke
‐ The im
SEPTA
‐ SEPTA
contra
region
.1FUNDINGrom a big pict
erformance o
nd capital exp
Analysis focuses onudgeted amounts fUses a GDP Deflato
F GREATER PHILADEL
2:SEPTA’STA has made s
constraints h
the expansio
nificant increa
. This experie
scal environm
ree‐year perio
e years.8 Sinc
re at nearly th
investments
r in FY2013.
y to invest mo
federal. In 20
n Trust Fund a
n capital fund
portion of cap
position of to
usion of capit
Act (ARRA). A
ntrast to the f
on a formula
xamines SEPT
nts findings o
xtent to which
t performanc
mpacts of incr
’s transit infra
’s ability to in
acts and comp
al transit syst
G&MARKETture perspect
of the Author
penditures ov
n actual disbursemfrom year to year.or to adjust for inf
LPHIA & ECONSULT S
SSTEWARsignificant pro
ave prevente
on needs of a
ase in its capit
ence provides
ment.
od, SEPTA’s ca
e 2010, SEPTA
he same nom
are 37 percen
ore in its infra
007, the Penn
and provided
ding through A
pital funding p
olls on I‐80, w
tal funding fro
ARRA funds w
funding increa
basis for “sh
TA’s stewards
on:
h the increase
ce;
eased fundin
astructure; an
nvest ARRA fu
pleting the pr
tem.
TPERFORMAtive, did the in
ity? To exam
ver the last ni
ments for capital in. flation.
SOLUTIONS, INC. – AP
RDSHIPOogress in imp
ed SEPTA from
growing regi
tal budget, w
s a unique wi
apital investm
A’s capital inv
inal level that
nt lower than
structure in F
nsylvania Stat
significant ad
Act 44 was fo
provided by A
which never m
om the federa
were primarily
ase provided
ovel ready” p
hip of these t
e in investme
g from Act 44
nd
unds in “shov
rojects in a tim
ANCEncreases in S
mine this ques
ine years.
nvestments rather
PRIL 2013
18 | P a g e
OFPUBLICroving its agi
m bringing the
on. For a bri
with the expec
ndow to eval
ments were n
vestments ha
t prevailed in
n in FY2009.9
FY 2008‐2010
te Legislature
dditional reve
ormula‐based
Act 44 was to
materialized. I
al governmen
y invested in
by Act 44, AR
projects.
two temporar
ent in SEPTA a
4 on service le
el‐ready” pro
mely manner,
EPTA funding
stion, our ana
r than SEPTA’s bud
CFUNDSng infrastruct
e existing sys
ef period, be
ctation that a
luate the perf
early 32 perc
ave been grad
n 2005. Adjus
Infrastructur
0 was the resu
e adopted Act
enue for both
, intended to
be derived fr
n FY2009, SE
nt through th
FY2009 and F
RRA funds we
ry infusions o
associated wit
evels, quality
ojects, its perf
, and their im
g actually tran
alysis examine
dgeted amounts si
ture, through
stem into a st
tween FY200
at least part o
formance of
cent higher on
dually declinin
sting for inflat
e investment
ult of two pie
t 44, which cr
h capital inves
o be permane
rom revenue
PTA also rece
e American R
FY2010, with
ere limited to
of capital fund
th Act 44 tran
y, and the stat
formance in e
mpact on the s
nslate into im
es customer s
ince disbursement
hout most of
ate of good r
08 and 2010, S
of the increase
SEPTA in a les
n average tha
ng annually, a
tion, SEPTA’s
ts are expecte
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reated the Pu
stment and o
nt, and to gro
generated by
eived a one‐ti
Recovery and
a small amou
capital inves
ds. Specifical
nslated into i
te of good re
executing tho
state of repai
mproved mark
satisfaction, r
ts differ considera
its history
repair, let
SEPTA
e would
ss
an in the
and in
FY2012’s
ed to
tion, one
ublic
operations.
ow over
y the
ime,
unt in
stment,
ly this
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pair of
ose
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ket
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ably from
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CONOMY LEAGUE OF
igure 1 shows
75 million bet
ugmented in
hey were in FY
ompleted, an
ut SEPTA’s ca
ecrease in Ac
rowth is antic
overnment.
uring the yea
asic infrastru
espite the inh
apital investm
atisfaction Su
EPTA periodic
erformance a
cale of 0 to 10
ear to reflect
words, FY2009
igure 2 clearly
nvestment be
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ollowing decl
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The failure to toll
$‐
$100
$200
$300
$400
$500
$600
$ M
ILLIONS
F GREATER PHILADEL
s the level of
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FY2009 by AR
Y2007. Infras
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ct 44 funds an
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cture of the s
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y shows that
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2 in 2008 and
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n late FY2012
I‐80 reduced capit
$354
0
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LPHIA & ECONSULT S
SEPTA capita
7 and FY2008
RRA funds, w
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nd the exhaus
Y2013 and bey
FIGURE
EPTA had a b
system and, im
ulty of success
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customer sat
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d 7.9 in FY201
f investment
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SOLUTIONS, INC. – AP
l investments
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enditures fell
ult of the Tur
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yond based o
1: SEPTA CAPIT
Source: SEPTA
boost in funds
mportantly, t
sfully managi
in the level o
2010 to FY201
s survey of its
d potential cu
omer satisfac
een infrastruc
in FY2010 to
tisfaction imp
1. Customer
10, two years
between FY2
wing a slight d
blic transportation
$342 $3
FY2006 FY20
PRIL 2013
19 | P a g e
s since FY200
he adoption o
al expenditure
somewhat in
rnpike Comm
on.10 FY2012
A funding, falli
on current cap
TAL EXPENDITUR
CPMS Reports (20
s for capital in
o make mean
ng a sudden
of SEPTA rider
12.
s riders (and a
ustomers. Fig
ction is plotte
cture improve
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proved signific
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after the beg
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decline.
n by $150 annually
355
$431
007 FY2008
04. SEPTA’s ca
of Act 44. SEP
es were more
n FY2010 as A
ission’s failur
2 expenditure
ing 34 percen
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RES (FY2004‐201
004‐2012)
nvestment, it
ningful impro
increase in ex
r satisfaction
a smaller sam
gure 2 display
ed against cap
ements and c
their impact
cantly during
rose from 7.1
ginning of sig
e most recen
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$479
8 FY2009
apital funding
PTA’s capital i
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re to win app
es fell significa
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made signific
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g increased m
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avorably. The
alued by SEPT
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SATISFACTIONRATING
F GREATER PHILADEL
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So
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ance statistics shoesearch Center fon the changing na
6.00
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SATISFACTION RATING
LPHIA & ECONSULT S
GURE 2: CUSTOM
ource: SEPTA Custo
m this trend is
to improve th
nts enabled S
s as reflected
service enha
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tion among ri
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ndeed, a cust
at private tra
tisfaction. Fo
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hip is at a twe
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SOLUTIONS, INC. – AP
MER SATISFACT
omer Satisfaction
s that custom
he environme
SEPTA to deliv
by its consum
ncements, le
g may also im
ders that SEP
ntial riders co
tomer’s optio
nsportation i
or a few years
ping to change
enty‐three‐ye
value reliability htation Research anress coverage and
PRIL 2013
20 | P a g e
ION & CAPITAL
Surveys (2008, 20
er satisfactio
ent within wh
ver a service t
mer satisfacti
veraging the
mprove custo
PTA was alwa
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s, SEPTA bene
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ear high. Figu
igher than any othnd FDOT, Transit Ron local transport
INVESTMENT (F
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n is correlate
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increased rel
mer satisfact
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uting to work
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to which the r
ure 3 shows S
her service charactRidership, Reliabilittation blogs and re
0
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200
300
400
500
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ed with capita
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teristic, and almosty, and Retention,eviews such as Ye
CAPITAL EX
PEN
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ILLIONS
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ded by the ca
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al crisis—this
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ortant factor i
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st as high as safety, October 2008. lp.
tisfaction
pital Spendingyear Lag Effect
, and that
onded
s highly
ts were
apital
Prior to
eeds a
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sy
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se
CONOMY LEAGUE OF
n the eight ye
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ders increase
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ystem during
s Figure 3 cle
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hat SEPTA’s ri
trengthens th
n sum, SEPTA
gnificantly im
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With funding l
dership. Wit
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urrent “State
hat it needs to
n additional $
The exception to Sfect in SEPTA’s ovDuring the periodervices as well as th
270.0
280.0
290.0
300.0
310.0
320.0
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340.0
350.0UNLINKED
PASSEN
GER
TRIPS
(MILLIONS)
F GREATER PHILADEL
ars prior to A
the six years f
ed from $344
onary fare in
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arly illustrate
gnificant given
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he conclusion
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mproved its pr
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300.
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LPHIA & ECONSULT S
F
Act 44 (FY2000
following Act
million in FY2
creases. The
de its service
es, SEPTA has
n the historic
eased during t
that these in
increased cap
roduct in the
ng revenue as
set at a 15‐ye
nt capital inve
ds to sufficien
air” investme
dditional $129
annually to el
e unabated upwarthe fiscal year. option of Act 44, Sthe service.
7 305.2
29
2001 FY2002 F
SOLUTIONS, INC. – AP
FIGURE 3: SEPTA
Sour
0‐2007) total
44 ridership
2007 to $446
e operating an
e more attract
sustained th
relationship
the most seve
nvestments w
pital and oper
eyes of the r
s a result.14
ear low, it will
estment to co
ntly operate th
ent levels, the
9 million ann
iminate its ba
d trend in ridershi
EPTA managed to
95.3 298.3
3
FY2003 FY2004
PRIL 2013
21 | P a g e
A RIDERSHIP (FY
rce: SEPTA (2013)
SEPTA riders
averaged ove
million in FY
nd capital inve
tive to riders
ose ridership
between tran
ere economic
were a driving
rating funding
egion’s reside
l not be possi
ontinue to bri
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e backlog of u
ually to main
acklog of nee
ip growth was FY2
improve its public
301.0 298.7
4 FY2005 FY20
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ship averaged
er 330 million
2013 as a res
estments tha
when gas pri
p gains in subs
nsit ridership
c downturn si
force behind
g to increase
ents, both rid
ible for SEPTA
ing the system
As shown in Fi
unfunded nee
ntain the syste
eds within the
2010, during which
c perception amon
296.6
307.
006 FY2007 FY2
d less than 30
n riders per y
sult of the inc
at SEPTA mad
ices spiked in
sequent fisca
and econom
ince the Grea
d increased us
its share of r
ders and non‐
A to sustain a
m into a state
igure 4, SEPTA
eds will expan
em in its curr
e next 20 year
h a six‐day service
ng area residents
.2
325.1 32
2008 FY2009 F
00 million ride
ear. Fares pa
creased riders
e to improve
FY2008 and
l years.13 This
mic activity. Th
at Depression
se of the syst
regional trave
‐riders, and g
nd grow tran
e of good rep
A forecasts th
nd. SEPTA est
ent state of r
rs.
interruption had
who did not use S
29.6
321.0
FY2010 FY2011
ers per
aid by
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its
FY2009.
s is
he fact
n
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el. It
enerated
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air, it will
hat at
timates
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a downward
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334.0
339.3
1 FY2012
EC
2
2Pr
ca
fu
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fu
CONOMY LEAGUE OF
.2IMPROVE
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und while cap
unding throug
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ransferring tra
unds transfers
0
1
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5
6
7
8
9SG
R BACKLO
G ($ BILLIONS)
F GREATER PHILADEL
FI
EMENTSFRO
OBLEMoption of Act
m. Operating
pital investme
gh Act 26 and
erating fundin
ansit and high
s that took pl
FY2012 FY2
LPHIA & ECONSULT S
GURE 4: SEPTA
OMADOPTIO
t 44 in 2007, S
g funding relie
ent was suppo
d Act 3. From
ng shortfalls.
hway capital
ace prior to A
014 FY2016
SOLUTIONS, INC. – AP
PROJECTED STA
Sour
ONOFACT4
SEPTA suffere
ed primarily o
orted primari
FY2001 throu
In addition to
funding to fu
Act 44 to fill S
CURRESGR
REMAI($20
FY2018 FY20
PRIL 2013
22 | P a g e
ATE OF GOOD RE
rce: SEPTA (2013)
44OF2007
ed from chron
on annual app
ly by a combi
ugh FY2007, s
o fare increas
nd transit op
SEPTA operati
ENT LEVEL OF R SPENDING NS CONSTANT00 M/YEAR)
020 FY2022
FISCAL YEAR
EPAIR NEEDS (FY
7
nic underfund
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ination of Fed
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ELIMIIN 2
MAINTAINBACKLO
M/Y
T
FY2024 FY20
R
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ding of both i
from the Com
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ortfalls were o
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aps.
INATE BACKLO0 YEARS ($652M/YEAR)
N EXISTING OG ($329 YEAR)
026 FY2028
its operations
mmonwealth’
nd dedicated
s for operatio
often overcom
summarizes
OG 2
FY2030 FY20
s and its
s general
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ns had led
me by
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032
EC
W
fa
al
cu
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ad
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an
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in
15
16
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While the flexi
are increases
lready in desp
urrent operat
Despit
capita
new m
Street
system
improv
needs
.2‐2APARTIn 2007, the st
doption of Ac
ennsylvania c
nnual legislat
rom the Penn
PTAF), and to
n contrast to p
nflation‐sensit
ransit. This no
nflation on the
SEPTA 2007 CapitAct 44 Public Tran
0
25
50
75
100
125
150
175
200
$ M
ILLIONS
F GREATER PHILADEL
ng of highwa
at SEPTA, div
perate need f
tions. SEPTA
te the progres
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markets and m
Subway stati
m, restoration
vements to bu
warranted.15
IALSOLUTIONate legislatur
ct 44. Act 44
created a unif
tive appropria
sylvania Lotte
ll revenue fro
prior years, A
tive. A key so
ormally reliab
e value of tra
al Budget, p.19 nsportation Progra
0
5
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5
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LPHIA & ECONSULT S
FIGURE 5: PU
Sou
ay funds and s
verting funds
for investmen
noted in its 2
ss SEPTA has m
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major new sta
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n of rail servic
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–ACT44re addressed
created the P
fied, dedicate
ations. The PT
ery, state bon
om the Penns
Act 44 was int
ource of funds
ble source of
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am Factsheet, Pen
FY2003 FY20
SOLUTIONS, INC. – AP
BLIC FUNDS TRA
urce: The Price of I
shifting of cap
from capital a
nt. SEPTA wa
2007 Capital B
made in bring
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arts have been
d and Spring G
e between Elw
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the public tra
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ed source of f
TTF is funded
nd funds, taxe
ylvania Turnp
ended to pro
s for the PTTF
funding tend
The sales tax
nsylvania Departm
04 FY2005
PRIL 2013
23 | P a g e
ANSFERRED TO
Inaction, Economy
pital funds to
accelerated t
s effectively f
Budget:
ging the trans
d due to finan
n unable to ad
Garden, mode
wyn and Waw
t been advanc
ansit funding
ortation Trus
funding for pu
d by dedicatin
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pike Commiss
ovide funding
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ment of Transporta
FY2006 FY2
SEPTA PRIOR TO
y League (2007)
operations p
the erosion of
forced to “ste
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ernization of
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problem in a
st Fund (PTTF
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sion.16
sources that
ation of a 4.4
er time, maki
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ation, 2011
007
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12%
O ACT 44
prevented dra
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nts. In additio
ects such as th
the Authority
ment of region
ely a manner
comprehens
), which for t
rtation that is
of state sales
ublic Transpor
are predicta
percent of th
ing it ideal to
n doubled from
nsfer Act 26
nsfer of Federsistance
xing of Federands
storation of 6%
nsfer Act 3 Cap
% Fare Increase
amatic service
ructure that w
e future to pay
o a state of go
on, projects to
he renovation
y’s fare collec
nal rail substa
as conditions
sive way with
he first time i
s not depend
tax revenues
rtation Assista
ble, dedicate
he State’s sal
offset the eff
m FY1990 thr
al Capital
l Transportatio
% Subsidy
pital to Operat
e
e cuts and
was
y for
ood repair,
o serve
n of Broad
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ations, and
s and
the
in
ent on
s, funds
ance Fund
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fects of
rough
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ting
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17
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Y2010, but be
he funding pr
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ennsylvania T
ayments to P
er of Pennsyl
FHWA) in Apr
million in annu
.2‐3SEPTA’Sor the nearly
electively incr
perations, SE
2. (See Table
SEPTA
14
26
70
108
31
24
PAOLI‐TH
108 Source: SE
Federal funding (o
$
$1,00
$2,00
$3,00
$4,00
$5,00
$6,00
$7,00
$8,00
$9,00
$10,00
TAX REC
EIPTS ($ M
ILLIONS)
F GREATER PHILADEL
ecause of the
oblem for pu
lement of Act
Turnpike Com
TTF by 2.5 pe
vania. Ultima
il 2010, Act 4
ual capital fun
SUSEOFACTthree years t
rease service
PTA increase
11 for more d
A ROUTE NA
SW
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N
HORNDALE LI
SEEPTA (2009)
other than ARRA f
0
0
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1980 1982 1
LPHIA & ECONSULT S
recession, sa
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FIGU
t 44 is the fun
mmission reve
ercent per yea
ately, when t
44 funding lev
nding and its s
44FUNDSthat Act 44 wa
and to begin
d frequency o
details on sel
TABLE 11: PO
ATURE OF SERV
WITCHED TO ART
NCREASED PEAK
NCREASED PEAK
NCREASED PEAK
NCREASED PEAK
EW SERVICE ADD
NE EXTENDED
ERVICE EXTENDE
unds) was flat dur
1984 1986 198
SOLUTIONS, INC. – AP
ales tax reven
cross the stat
URE 6: PA SALES
Source: Commonw
nding of trans
enue. Under A
ar, provided t
he tolling pla
vels were rolle
source of infl
as solvent, th
to address it
of service on
ected service
OST ACT 44 SELE
VICE IMPROVEM
TICULATED BUS
HOUR FREQUEN
HOUR FREQUEN
HOUR FREQUEN
HOUR FREQUEN
DED
ED
ring this period as
88 1990 1992
PRIL 2013
24 | P a g e
nues dipped s
te and affectin
TAX REVENUE (
wealth of Pennsylv
sit, for both o
Act 44, the Tu
that it was giv
n was rejecte
ed back and f
ation‐indexed
he new operat
ts backlog of n
many routes
e improvemen
ECTED SEPTA SE
MENT
ES INCREAS
NCY IMPROV
NCY IMPROV
NCY IMPROV
NCY IMPROV
15‐MINU
EXTEND
ALL TRIP
well.
2 1994 1996FISCAL YEA
significantly in
ng SEPTA in p
(1980‐2012‐Q3)
vania (2013)
operating and
urnpike Comm
ven permissio
ed by the Fed
flat‐lined. Wh
d funding for
ting and capi
needed infras
and even cre
nts)
RVICE IMPROVE
SED SEATING CA
ED FROM 10 TO
ED FROM 4 TO 3
ED FROM 15 TO
ED FROM 30 TO
UTE SERVICE AT
TRAIN #514 FRO
PS EXTENDED FR
1998 2000 20AR
n FY2009 and
particular.17
capital need
mission was t
on to toll I‐80
deral Highway
hen that happ
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tal funds allo
structure inve
eated new ro
EMENTS
RESULT
PACITY
O 8 MINUTES
3 MINUTES
O 12 MINUTES
O 20 MINUTES
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OM MALVERN TO
OM 67TH & ELM
002 2004 200
FY2010, exa
s, from the
to increase its
0 across the n
y Administrat
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estments. In
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O THORNDALE
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06 2008 2010
cerbating
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o
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18
19
20
CONOMY LEAGUE OF
t the same tim
thers. Even w
nderperform
bears noting
nfrastructure
ring SEPTA in
n important s
eeds. Most s
‐ System
‐ Safety
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s shown in Fig
now at 1997
y 43 percent
ompared to p
udget is alloc
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100
200
300
400
500
600
700
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ILLIONS
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from the leve
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eased funding
could not be
reased capita
capital fundin
to a state of g
ght direction a
mong these ne
lacement acq
ncluding auto
nd
ents.
ncrease in cap
r accounting f
el in 1997.19 A
, it should als
or bonds sup
than the total
FIGURE 7: S
with Positive Trai
ed2/ 25/news/2550074
SOLUTIONS, INC. – AP
service on som
g from Act 44,
improved. It
l funding only
g provided by
good repair.
and allowed S
eeds were:
quisition prog
matic train co
pital funds fro
for the loss in
Also, despite t
so be noted th
porting earlie
l yearly capita
SEPTA CAPITAL
Sour
n Control, at a cos
47_1_septa‐board‐
REJECTOLLIN
$191 M FRO
PRIL 2013
25 | P a g e
me routes, it
, the Authorit
continues to
y allowed SEP
y Act 44, even
Still, the antic
SEPTA to mak
gram (necessa
ontrol;18
om Act 44 has
n the value of
the fact that S
hat a portion
er capital inve
al funding.
FUNDING TREN
rce: SEPTA (2013)
st of $150M
‐louis‐j‐gambaccin
CTION OF I‐80 NG FOR ACT 44
OM ARRA
also carefully
ty adjusted o
do so each ye
PTA to begin t
n with the to
cipated levels
ke progress in
ary for the via
s disappeared
f the dollar, S
SEPTA’s level
(17 percent
estment.20 Th
NDLINE (FY1997‐
ni‐regional‐rail
4
y monitored t
r cut services
ear through i
to address se
lling of I‐80, w
s of capital fu
n addressing p
ability of ongo
d, and monet
EPTA’s capita
l of indebtedn
in 2013) of ea
hus, the amo
‐2012)
the performa
s that were
ts Annual Ser
everal long te
was insufficie
unding in Act
pressing infra
oing bus serv
ary capital in
al funds have
ness is modes
ach year’s cap
unt of capital
nce of all
rvice Plan.
rm
ent to
44 were
astructure
ices);
vestment
declined
st
pital
l available
EC
2
2In
A
to
st
Th
fu
To
da
ag
SE
si
im
an
“s
En
D
“t
w
N
bi
ec
Ta
to
fu
20
ca
21
twun22
23
24
25
CONOMY LEAGUE OF
.3SEPTA’S
.3‐1ANATIOn 2008, the O
ct (ARRA), wh
o transit agen
trategically re
he ARRA fund
unds on hard
o that end, pr
ays of notice
gencies had t
EPTA prepare
gning, SEPTA
mproved and
nd presentati
shovel ready”
ngineering Co
espite the dis
there’s no suc
which were fo
ationally, the
illion. SEPTA
conomy by cr
able 12 show
otal capital bu
unding than a
009. Because
apital funding
For most of its deswo 2007 GECs in Fander contract and SEPTA had preparIbid http://www.nytimFederal Transit Ad
F GREATER PHILADEL
SSUCCESSIN
ONALPERSPECbama Admini
hich included
ncies, states, a
epair its aging
ds were awar
costs (actual
rojects were
to proceed.
o find ways t
ed diligently f
A worked to ge
fast‐tracked
ions, and rep
” projects had
onsultant con
sappointing a
ch thing as sh
r shovel read
e ARRA funds
received $19
reating jobs.
s a summary
udget (FY2010
any of its peer
e ARRA funds
g, outside of t
sign and engineeriall 2008 to provideutilized their servired shovel‐ready p
mes.com/2010/10/dministration, 201
LPHIA & ECONSULT S
NINVESTING
CTIVEistration anno
a program in
and local gove
g infrastructur
ded on a form
construction
required to b
The ARRA leg
o invest their
or the award
et projects as
its internal pr
lacing them w
d either comp
ntracts.
amount of sho
hovel ready pr
y projects an
allowed the
91 million (2.1
of the recipie
0). SEPTA’s ca
r agencies, re
were distrib
the temporar
ing work, SEPTA ue additional fundinices for Stimulus dprojects for an esti
/17/magazine/17o3
SOLUTIONS, INC. – AP
GARRAFU
ounced the im
ntended to st
ernments. Fo
re.
mula basis an
expenditure
be “shovel‐rea
gislation inclu
r funds in a tim
s. Like very fe
s close to sho
rocesses by a
with bi‐weekl
pleted design
ovel ready aw
rojects”,24 SEP
d were award
Federal Trans
1 percent) of
ents of the la
apital budget
ceiving an eq
uted proport
ry ARRA infus
sually has Generang to fast‐track Stidesign with Act 3 fimated contract va
obama‐t.html?_r=
PRIL 2013
26 | P a g e
NDS
mplementatio
imulate infras
or SEPTA, ARR
d set up to en
s) in an effort
ady” – constr
uded various “
mely fashion.
ew other tran
vel ready as t
ccelerating th
y tabletop‐ty
phase or des
wards which le
PTA received
ded within on
sit Administra
this total to b
rgest ARRA a
was more sig
quivalent of m
ionately by fo
ion, is propor
l Engineering Consmulus design withunds. alue of up to $400
3&ref=magazine&
on of The Am
structure inve
RA funds repr
ncourage app
t to maximize
uction had to
“use‐it‐or‐los
.21
nsit agencies,
technically po
he design pro
ype reviews.23
sign was fast‐
ed President
$190 million
ne year of the
ation (FTA) to
be used on ca
wards in gros
gnificantly im
more than 50
ormula, this s
rtionately low
sultant (GEC) conth Act 3 funds. Add
0 million in anticip
&pagewanted=all%
erican Recov
estment by a
resented a ne
plicants to inv
e the impact o
o be able to c
se‐it” provisio
for the mont
ossible.22 For
ocess, elimina3 At the time
‐tracked unde
Obama to sta
of ARRA fund
e President’s
o award 1,072
apital projects
ss dollars and
mpacted by th
percent of its
suggests that
wer than any
tract agreements iditionally, SEPTA h
ation of ARRA.
%22
very and Reinv
llocating cap
ew opportuni
vest a majorit
on economic
ommence wi
ons, and trans
ths prior to A
r that period,
ating formal r
of signing, SE
er SEPTA’s Ge
ate in an inte
ds, 100 perce
signature.
2 grants total
s to stimulate
d as a proport
e infusion fro
s capital budg
SEPTA’s ongo
peer agency.
in place. SEPTA inhad two older GEC
vestment
ital funds
ity to
ty of those
activity.
thin 120
sit
RRA
SEPTA
reviews
EPTA’s
eneral
rview that
ent of
ing $8.78
e the
tion of
om ARRA
get as of
oing 25
ncreased the s (since 2005)
EC
A
in
in
cu
Th
Th
fo
pi
qu
2Tr
la
Th
ob
th
in
ex
26
CONOMY LEAGUE OF
NEW YORK ME
NEW JERSEY TR
CHICAGO TRAN
WASHINGTON
MASSACHUSET
SOUTHEASTER
Source: Federa
s evidenced b
nfrastructure
nadequate fun
ustomers.
hese projects
‐ 16 pro
‐ 6 proje
‐ 4 proje
‐ 5 proje
‐ 1 proje
he fact that S
oresight by th
ipeline during
uickly.
.3‐2OVERVIEransit agencie
arger effect on
he US Depart
bligated unde
he agencies’ c
n the table illu
xpenditures.
2009 or 2010 num
F GREATER PHILADEL
TABLE 12:
ETROPOLITAN T
RANSIT CORPOR
NSIT AUTHORITY
METROPOLITA
TTS BAY TRANSP
RN PENNSYLVAN
al Transit Admini
by the list of S
projects. Ma
nding. Moreo
s included the
ojects related
ects related t
ects related t
ects related t
ect for new H
SEPTA was ab
he SEPTA Boa
g the run‐up t
EWOFARRAes were enco
n the econom
tment of Tran
er ARRA were
capital budge
ustrates that S
Design, engin
mbers as available
LPHIA & ECONSULT S
ARRA FUNDS AL
AGENCY
RANSPORTATIO
RATION (NJT)
Y (CTA)
N AREA TRANSP
PORTATION AUT
NIA TRANSPORT
istration (2013);
SEPTA project
any of these p
over, many of
e following:
to Transit an
o Right of Wa
o Traction Po
o Communica
Hybrid Buses:
le to execute
rd to allocate
to the enactm
FUNDSINVESTuraged to inv
my, ideally thr
nsportation Fe
e meant for co
ts. Table 13 s
SEPTA spent
neering, and o
SOLUTIONS, INC. – AP
LLOCATED IN PR
ON AUTHORITY (
PORTATION AUT
THORITY (MBTA
TATION AUTHOR
ESI (2013)
ts shown in A
projects addre
f the projects
d Railroad St
ay, Track and
ower Systems
ations and Sig
$20.5 Million
so many pro
e several milli
ment of ARRA
TEDBYSEPTvest ARRA fun
rough constru
ederal Transit
onstruction p
shows SEPTA’
the vast majo
other “soft co
PRIL 2013
27 | P a g e
ROPORTION TO
(NY MTA)
THORITY (WMA
A)
RITY (SEPTA)
Appendix A, S
essed needs t
s directly imp
ations: $71.2
Bridges: $61
s: $14.4 Millio
gnal Systems:
n
jects over suc
on dollars to
A. That fact al
TA nds on “hard
uction project
t Administrat
projects, and
s use of ARRA
ority of its AR
osts” amount
AGENCY CAPITA
AMO
$1,366,3
$422,7
$241,7
ATA) $201,8
$273,6
$190,8
EPTA’s ARRA
that had been
roved the qu
2 Million
.1 Million
on
: $23.7 Millio
ch a short pe
complete the
llowed SEPTA
costs” in orde
ts.
tion reports th
used for direc
A funds by ty
RRA funds (84
ed to only 16
AL BUDGETS (20
UNT CAPIT
308,883 $9,
796,279 $1,
731,915 $
833,222 $
699,786 $
891,217 $
funding was
n deferred fo
ality of servic
n
riod of time w
e design of pr
A to invest its
er to create m
hat a large po
ct constructio
pe of expend
4 percent) on
6 percent of it
010) 26
TAL BUDGET
,142,000,000
,400,000,000
$682,000,000
$527,000,000
$619,000,000
$367,000,000
focused on b
or many years
ce to SEPTA’s
was a functio
rojects alread
money wisel
more jobs and
ortion of the f
on expenditu
diture. Data p
direct constr
ts ARRA expe
ARRA/ CAPITAL BUDGET
15%
30%
35%
38%
44%
52%
basic
s due to
n of
dy in the
ly and
d have a
funds
res under
resented
uction
nditures.
EC
SE
by
2SE
in
m
fo
th
SE
w
ha
Ta
ap
w
27
CONOMY LEAGUE OF
EPTA was abl
y aggregating
.3‐3IMPROVEEPTA’s ability
ndicators. One
measuring dol
or completed
han 10 percen
YEA
2005‐20
2007‐20
2010
2011
2012 Source: S
EPTA has also
worked to fine
ave included:
Hybrid
eleme
Plug an
made
approp
Force a
(Railro
able 15 show
pproaches. Sa
was able to sav
Removing purcha
F GREATER PHILADEL
3RD PARTY
3RD PARTY
3RD PARTY
AMTRAK
SEPTA PRO
SEPTA FO
DIRECT SU
TOTAL
Source: SE
e to bid out it
g the savings f
EDCONSTRUCy to efficiently
e such indicat
lars above or
construction
nt in 2005‐20
TAB
AR NUMCONT
006
008
SEPTA (2013)
o realized sign
e‐tune its app
:
d project deliv
nts and selec
nd play proje
by third party
priate. (Railro
account proje
oad/City/Subu
s cost savings
avings include
ve more than
se of buses of $19
LPHIA & ECONSULT S
TABLE 13: B
EXPEN
Y CONSTRUCTIO
Y ARCHITECTURE
Y ARCHITECTURE
OJECT MANAGE
RCE ACCOUNT/
UPPORT
EPTA (2013)
ts projects ex
from below‐b
CTIONMANAG
y invest its res
tor is change
iginal contrac
n projects from
06 to less tha
LE 14: CHANGE
BER OF TRACTS CON
29
53
41
43
27
nificant cost s
roach to cons
very ‐ Matchi
ct third party
ct delivery ‐ M
y signal manu
oad Automati
ect delivery ‐
urban Track)
s on select ca
e labor, mate
n $8.6 million
9.6 million, “hard c
SOLUTIONS, INC. – AP
REAKDOWN OF
NDITURE
ON
E & ENGINEERIN
E & ENGINEERIN
EMENT
BUSING
xtremely com
budget bids a
EMENTLEDTsources can a
order rates, a
ct value requi
m 2005 throu
an five percen
ORDER RATES F
ORIGINAL NTRACT VALUE
$200,500,000
$410,600,000
$192,614,273
$ 99,048,292
$ 100,316,630
savings from i
struction proj
ng of SEPTA's
contracts. (Ra
Matching of S
ufacturers wh
c Train Contr
SEPTA in‐hou
apital projects
erial, contract
for work don
costs” would go do
PRIL 2013
28 | P a g e
F SEPTA ARRA EX
NG DESIGN
NG CRS
petitively, wh
nd reinvestin
OSIGNIFICANalso be measu
a way of asse
ired to finish
ugh 2012. SEP
nt in 2012, a m
FOR CONSTRUCT
CHANGE ORAMOUNT
$20,20
$25,80
$11,09
$ 4,62
$ 4,35
innovations in
jects to squee
s in‐house lab
ailroad Statio
SEPTA's in‐ho
hile also using
rol)
use labor with
s that have fe
t, property, un
ne with federa
own to 83%.
XPENDITURES (2
ARRA PROJECTCOST AREA
$160.3M
$1.9M
$1.9M
$1.0M
$6.1M
$8.8M
$10.9M
$190.9M
hich allowed
ng the remain
NTCOSTSAVINured by tradit
essing project
a project. Ta
PTA has slashe
more than 50
TION CONTRACT
RDER T
RESCONTR
00,000 $2
00,000 $4
9,147 $2
5,956 $1
8,820 $1
n project deli
eze savings o
bor forces wit
ons)
use labor wo
g third party s
h third party
eatured one o
nused conting
al funds. For
2010) 27
T PERCENT TOTAL ARFUNDIN
M 8
M
M
M
M
M
M
M 10
it to advance
ning funds.
NGS tional constru
t managemen
ble 14 provid
ed its change
0 percent red
TS (2010‐2012)
SULTING RACT VALUE
220,700,000
436,400,000
203,713,420
103,674,248
104,675,450
ivery. Most n
out of projecte
th third‐party
ork with prefa
suppliers and
material purc
of these proje
gency and su
example, SEP
OF RRA NG
84.0%
1.0%
1.0%
0.5%
3.2%
4.6%
5.7%
00.0%
e six additiona
uction perform
nt efficiency b
des change‐or
e order rate fr
uction.
CHANGE ORDERATE
10.1
6.3
5.8
4.7
4.3
otably, SEPTA
ed costs. Inno
y prefabricate
abricated elem
contractors w
chases.
ect delivery
pport savings
PTA saved $2.
al projects
mance
by
rder rates
rom more
ER
1%
3%
8%
7%
3%
A has
ovations
ed
ments
where
s. SEPTA
.1 million
EC
on
its
Ch
m
A
A
ne
th
2D
se
be
ag
A
to
Th
A
ye
CONOMY LEAGUE OF
n its Primos S
s Ryers Statio
hestnut Hill E
million on its A
INIT
U
TOTA
ESTI
Sour
dditionally, S
s shown in Ta
eeds with thi
hese headcou
C
Q
T
T
T
T
S
.4SUMMARespite fundin
ervices. While
enefitted from
gency to mak
dditionally, th
o significant c
his analysis fi
ct 44 and ARR
ears.
F GREATER PHILADEL
Station Recon
on Reconstruc
East Automati
Airport Line T
TAB
PROJECT
IAL PROJECT BU
LABOR SA
MATERIAL SA
CONTRACT SA
PROPERTY SA
UNUSED CONTIN
SUPPORT SA
AL PROJECT SAV
% SA
MATED ACTUAL
rce: SEPTA (2013
EPTA continu
able 16, since
rd‐party tech
unt reduction
T
CAPI
CAPITAL CONST
PROJECT CONTR
QA/QC
TOTAL ADMIN/
RAIL FACILITIES
TRANSIT FACILIT
POWER/COMM
ELECTRICAL FAC
BLUE LINE STRU
NEW PAYMENT
TOTAL PROJECT
TOTAL CAPITAL
Source: SEPTA (2
RYng shortfalls o
e more fundin
m infusions o
ke significant
he agency wa
cost savings.
nds that SEPT
RA, and has in
LPHIA & ECONSULT S
nstruction Pro
ction Project
ic Train Contr
ie & Surfacing
BLE 15: SEPTA CO
PRIM
UDGET
AVINGS
AVINGS
AVINGS
AVINGS
NGENCY
AVINGS
VINGS
AVINGS
L COST
3)
ually seeks to
e FY2009, SEP
hnical consulta
s are approxi
TABLE 16: PROJE
ITAL MANPOWE
TRUCTION‐ADM
ROL
SUPPORT
TIES
MUNICATIONS &
CILITIES (1)
UCTURES
T TECHNOLOGY (
T MGMT. STAFF
(3)
2013)
over the last d
ng is needed t
of funds in rec
infrastructure
as successful a
TA has effecti
nstituted pro
SOLUTIONS, INC. – AP
oject (23 perc
(20 percent b
rol Project (41
g Project (32
OST SAVINGS O
MOS STATION
$9,040,199
$1,070,973
$404,744
$ 95,987
$364,935
$133,317
$2,069,956
23%
$6,970,243
reduce proje
TA has reduc
ants on a pro
mately $1.5M
ECT MANAGEM
ER
INISTRATION
SIGNALS
(2)
decade, SEPTA
to bring its in
cent years. St
e improveme
at streamlinin
ively spent fe
cesses to ass
PRIL 2013
29 | P a g e
ent below th
below the app
1 percent bel
percent belo
N SAMPLE OF F
RYERS STATIO
$9,552,6
$352,8
$760,6
$210,9
$10,5
$526,8
$92,7
$1,954,5
2
$7,598,0
ect soft costs
ed its capital
oject‐by‐proje
M for reassign
ENT MANPOWE
FY2008‐2009MANPOWER
10
15
2
27
15
18
‐
17
9
‐
59
86
A has worked
nfrastructure t
rategic utiliza
ents and incre
ng its services
ederal and sta
ure efficient d
e approved $
proved $9.5 m
ow the appro
w the approv
EDERALLY FUND
ON CHESTN
EAST
633 $9
803 $1
654
914
531
855
799
556 $3
20%
077 $5
by right‐sizin
manpower b
ect basis. Estim
ned staff and
ER SAVINGS (FY
FY2011‐2012MANPOWER
6
14
2
22
11
14
8
‐
‐
11
44
66
d diligently to
to a state of g
ation of Act 4
ease overall c
s and making
ate funds, in p
delivery of ca
$9.0 million b
million budge
oved $9.3 mil
ved $2.6 milli
DED PROJECTS
NUT HILL T ATC
AIR&
9,284,839
1,747,462
$803,437
$350,793
$645,790
$239,868
3,787,350
41%
5,497,489
g project man
by 31 percent
mated FY201
$1.9M for at
2008‐2013)
FEB. 2013 ACTUAL R
5
13
2
20
10
13
7
‐
‐
11
41
61
o improve its i
good repair, t
44 and ARRA f
ustomer satis
g good use of
particular tem
apital projects
udget); $2.0
et); $3.8 millio
llion budget);
on budget).
RPORT LINE TIE & SURFACING
$2,617,000
$434,108
$325,159
$25,767
$55,542
$840,576
32%
$1,776,424
nagement ma
t, augmenting
3 cost saving
trited staff.
PERCENT REDUCTION
50%
13%
‐
26%
33%
28%
‐
‐
‐
‐
31%
29%
infrastructure
the agency ha
funds allowed
sfaction since
public funds,
mporary infus
s for the past
million on
on on its
; and $0.8
anpower.
g staffing
s from
e and
as
d the
e 2008.
leading
sions from
t seven
EC
SATh
St
co
3Th
ag
re
in
N
3Ri
po
Be
sy
ra
3Fa
ex
re
CONOMY LEAGUE OF
SECTION3AGENCIEShis section co
tates as well a
omparisons in
.1PEERAGhis section pr
gencies. For t
egion, total ri
ncluding CTA,
ational Trans
.1‐1RIDERSHidership has i
osting averag
etween FY20
ystems in New
ate of growth
.1‐2FAREREarebox recove
xpenses cove
easons:
‐ Financassociabecaus
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
F GREATER PHILADEL
3:COMPAompares SEPT
as other trans
n operating a
GENCYCOMPresents a com
the purposes
dership, and
Metra, and P
sit Database (
HIPTRENDSincreased acr
ge annual incr
FIGU
02 and FY201
w Jersey (1.7
in Washingto
ECOVERYery is an impo
ered by passe
cial reportingated with freese SEPTA rece
1.7%
%
%
%
%
%
%
%
New Jersey
LPHIA & ECONSULT S
ARISONOF
TA’s funding a
sit agencies in
nd capital bu
PARISONSmparison of se
of this report
modal compo
Pace), New Je
NTD) for repo
ross the natio
reases similar
URE 8: PEER GRO
12, SEPTA exp
percent), Bos
on DC (0.6 pe
ortant measu
nger fares. Ho
g practices dife and discouneives reimbur
%
y (NJT) Bosto
SOLUTIONS, INC. – AP
FSEPTAB
and operating
n the Commo
dgets, ridersh
everal key bud
t, SEPTA’s ind
osition. Peer
ersey (NJT), an
orting year 20
n’s largest tra
r to those of i
OUP AVERAGE A
Source: Nat
perienced 1.3
ston (1.7 perc
ercent).
ure of operati
owever, inter
ffer across agnted senior cirsement for t
1.7%
on (MBTA)
PRIL 2013
30 | P a g e
BUDGETS
g efficiency le
onwealth of P
hip, fares, and
dget and serv
dustry peer gr
agencies incl
nd Washingto
011, the most
ansit systems
ts industry pe
ANNUAL CHANG
ional Transit Da
percent aver
cent), and Ch
ng efficiency,
r‐agency com
gencies: of noitizen travel ahe program f
1.3%
Phila. (SEPTA)
&SERVIC
evels to other
Pennsylvania.
d customer s
vice figures fo
roup was sele
ude: Boston (
on, D.C. (WM
t recent year
s In the last te
eers.
GE IN RIDERSHIP
atabase
rage annual g
icago (1.1 pe
, reflecting th
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ote, NTD classas an operatinfrom the Pen
1.1%
) Chicago
CESWITH
r large transit
Analysis feat
atisfaction.
or SEPTA and
ected based o
(MBTA), Chic
ATA). Data is
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en years, and
P (FY2002‐2012)
growth in ride
rcent), and m
he percentage
ould be made
sifies SEPTA’sng subsidy annsylvania Sta
%
(RTA) Wash.
HOTHER
agencies in t
tures trends a
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SEPTA has ke
ership, a rate
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and
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OMMUTER R
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EPTA’s fare re
ersey and sign
0%
10%
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30%
40%
50%
60%
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N
F GREATER PHILADEL
’s reimbursemevenue, SEPTAery rates are is reason, thisxist between
a catch‐all te
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TA paces heav
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A’s fare recov
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RAIL
, commuter r
nd frequency;
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ush hours.
ecovery on its
nificantly high
77%
New York (MTA
LPHIA & ECONSULT S
ment for seniA’s overall farlargely a funs analysis preagencies.
erm for large
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es.
vy rail system
ritory. Washin
onal fares tha
very is compa
all five agenc
et fares.
FIGURE 9:
rail refers to d
; commuter r
rea, charging
s commuter r
her than peer
68
A) Wash. DC
SOLUTIONS, INC. – AP
or travel totare recovery ranction of the msents fare rec
rail systems w
city. For SEPT
ms in fare reco
ngton D.C. als
at account fo
rable to its cl
cies, more tha
PEER GROUP HE
Source: Nationa
durable, fixed
rail services ty
fares based o
rail (“Regiona
rs, Boston’s M
8%
(WMATA)
PRIL 2013
31 | P a g e
aled $53,061,atio would inmode of servcovery at a m
with separate
TA, this refers
overy, largely
so has a high
or distance tra
osest heavy r
an half of exp
EAVY RAIL FARE
al Transit Databa
d systems with
ypically opera
on distance t
l Rail”) is amo
MBTA and Chi
52%
Phila. (SEPTA)
653. If NTD acrease by appvice (bus, lighmodal level to
ed right‐of‐wa
s to the Marke
y because of t
fare recovery
aveled (much
rail peers, Bo
penses for the
E RECOVERY (FY
ase (2011)
h separated r
ate less frequ
raveled and o
ong the highe
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52
) Chicag
accounted forproximately fht rail, heavy account for o
ay (i.e. exclud
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the extreme d
y ratio for its
like SEPTA’s
oston’s MBTA
e operation o
Y2011)
rights‐of‐way
uent service th
often assignin
est in the indu
a (part of the
2%
go (RTA)
r this reimburfour percentarail, commutoperational d
ding all non‐ra
, Broad Street
density of pop
MetroRail sy
commuter ra
and Chicago’
of heavy rail s
. The key diff
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ng a “peak” fa
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RTA region).
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rsement as age points. ter rail): differences
ail traffic),
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ference is
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A)
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CONOMY LEAGUE OF
IGHT RAIL
ght (or surfac
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eavy rail syste
ecovery ratios
ne) and Nort
0%
10%
20%
30%
40%
50%
60%
70%
80%
0%
10%
20%
30%
40%
50%
60%
70%
80%
F GREATER PHILADEL
ce) rail refers
at lower capa
ces typically h
h operate bot
despite the ca
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s that are we
hern New Jer
59%
New Jersey
4
Bosto
LPHIA & ECONSULT S
FIGURE 10: PE
to services th
acities and fre
ave lower far
h in shared a
apacity limita
ar with Bosto
ll above New
rsey (the Hud
FIGURE 11
(NJT)
49%
n (MBTA)
SOLUTIONS, INC. – AP
EER GROUP COM
Source: Nationa
hat can opera
equencies tha
re recovery ra
nd dedicated
tions of light
n for the high
Jersey Trans
dson‐Bergen L
: PEER GROUP L
Source: Nationa
57%
Phila. (SEPTA
PRIL 2013
32 | P a g e
MMUTER RAIL FA
al Transit Databa
ate either on
an heavy rail.
atios than hea
right‐of‐way
rail, SEPTA’s
hest in its pee
it, which ope
Line).
LIGHT RAIL FARE
al Transit Databa
A) B
46%
Phila. (SEPTA
ARE RECOVERY
ase (2011)
a shared (in‐
Because of t
avy or comm
y, fall into this
light rail fare
er group. Both
erates light ra
E RECOVERY (FY
ase (2011)
45%
oston (MBTA)
A)
(FY2011)
road) or dedi
heir lower pa
uter rail serv
s category.
e recovery is c
h SEPTA and
il in Southern
Y2011)
Chi
23
New Jers
icated right‐o
assenger capa
ices. Most of
close to that o
MBTA have f
n New Jersey
41%
icago (RTA)
3%
sey (NJT)
of‐way,
acities,
SEPTA’s
of its
are
(the River
EC
B
B
re
Tr
ro
hi
lo
pe
Th
Tr
at
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3SE
20
fr
O
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re
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Ea
m
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sh
CONOMY LEAGUE OF
US
uses operate
ecovery ratios
ransit, which
outes with lim
igh passenge
ower operatin
erspective, w
hese generali
ransit has the
t 19 percent.
he middle of t
.1‐3CUSTOMEPTA conduct
010, and 201
rom 7.2 in 200
Of note, those
f respondents
elatively flat s
ar has been r
ach agency in
making it impo
verall satisfac
howing that S
0%
10%
20%
30%
40%
50%
60%
70%
80%
F GREATER PHILADEL
primarily in s
s often vary b
has the highe
mited stops, h
r loads but op
ng efficiencies
with many of t
ities bear out
e highest reco
SEPTA’s fare
the pack at 30
MERSATISFACTts bi‐annual s
2. SEPTA’s rat
08. The level
surveyed we
s also express
satisfaction le
aised, SEPTA
n SEPTA’s pee
ossible to pre
ction and like
SEPTA receive
45%
New Jersey(NJT)
C
LPHIA & ECONSULT S
shared rights‐
based on the g
est bus farebo
higher speeds
perate with m
s. Suburban‐o
the same cha
in comparat
overy ratio at
recovery rati
0 percent.
FIGURE
TIONsurveys of cus
te of custome
of satisfactio
ere slightly mo
sed that they
evels between
will have to f
er group uses
cisely compa
lihood of reco
ed marks simi
38%
Chicago (CTA)
SOLUTIONS, INC. – AP
‐of‐way in mi
geographic sc
ox recovery r
and generall
many stops an
oriented bus r
racteristics as
ive fare recov
45 percent, w
io for its com
E 12: PEER GROU
Source: Nationa
stomer satisfa
er satisfaction
n fell just slig
ore likely to r
y had higher e
n 2010 and 20
find new way
a different m
re satisfactio
ommending t
ilar to those i
36%
New York(MTA)
PRIL 2013
33 | P a g e
xed traffic wi
cope of the se
ratio in SEPTA
ly high passen
nd often in he
routes often
s an urban sy
very ratios fo
while Pace in
prehensive sy
UP BUS FARE RE
al Transit Databa
action. Its mo
n reached a h
ghtly in 2012 t
recommend S
expectations o
012 could be
ys to improve
method of surv
n levels. How
the service to
n its peer gro
30%
Phila. (SEPTA)
ith private au
ervice provid
A’s peer group
nger loads. U
eavily congest
are the least
ystem but gen
r a peer grou
Chicago (par
ystem of urba
ECOVERY (FY201
ase (2011)
ost recent sur
high of 7.9 (on
to 7.7.
SEPTA in 2012
of SEPTA in 2
a function of
services and
veying custom
wever, most o
o others. Thes
oup.
25%
) Wash. DC(WMATA)
utomobiles. A
ed. For instan
p, operates m
rban bus rou
ted areas wit
efficient from
nerally lower
p of bus oper
rt of the RTA
an and subur
11)
rveys were co
n an index sca
2 (8.4) than 2
012 than in 2
f higher expec
increase sati
mers and qua
of the systems
se results are
23%
Boston(MBTA)
As a mode, bu
nce, New Jers
many long‐hau
tes also have
th slower spe
m a farebox
passenger loa
rators. New J
region) has th
ban bus servi
ompleted in 2
ale of 10) in 2
010 (8.3). Ne
2010, suggest
ctations. Now
isfaction.
antifying satis
s ask question
presented in
19%
Chicago (Pac
us farebox
sey
ul bus
e generally
eds and
ads.
ersey
he lowest
ices is in
008,
2010, up
early half
ting that
w that the
sfaction,
ns about
n Table 17,
ce)
EC
3
O
Ta
ag
w
Tr
re
tr
SE
pe
bu
ap
CONOMY LEAGUE OF
AG
BOSTON (MBT
CHICAGO (RTA
NEW JERSEY (
PHILADELPHIA
WASHINGTON
Source: Region
.1‐4OPERAT
OPERATING
able 18 show
gencies in its
was the lowest
ransit agency
evenues. Whi
ry to maximiz
EPTA’s overal
ercent, within
udget by fund
pproximately
F GREATER PHILADEL
TA
GENCY
TA)
A)
(NJT)
A (SEPTA)
N DC (WMATA)
nal Transportati
ING&CAPITA
s total operat
peer group. T
t of any agen
TAB
(
BOSTON (MB
CHICAGO (RT
NEW JERSEY
PHILADELPHI
WASHINGTO
Source: Natio
y operating bu
le these publ
e passenger r
ll fare recove
n a competiti
ding source. I
y 42 percent.
LPHIA & ECONSULT S
ABLE 17: PEER A
OVERAL
N/A
79% SATISF
RANGE FROOF 10 IN QU
7.7 ON AN I
BY MODE: RSCALE OF 10
ion Authority; NJ
ALBUDGETS
ting funds ex
The table sho
cy in its peer
BLE 18: PEER AG
(000)
BTA)
TA)
(NJT)
A (SEPTA)
N, D.C. (WMATA
nal Transit Data
udgets are ma
ic supports a
revenues and
ry ratio, not i
ve range of p
f the senior p
SOLUTIONS, INC. – AP
AGENCY CUSTOM
LL CUSTOMER SA
IED OR HIGHLY S
M 6.7 TO 6.9 ONUARTERLY SURV
NDEX SCALE OF
RAIL ‐ 77 BUS – 700
J Transit; SEPTA;
pended, ride
ows that in FY
group.
GENCY OPERATIN
OPERAT
FUNDS EXP
$1,
$2,
$2,
$1,
A) $1,
abase
ade up of a co
re necessary
d the share of
ncluding seni
peer agencies
program reim
PRIL 2013
34 | P a g e
MER SATISFACTI
ATISFACTION
SATISFIED
N INDEX SCALE EYS
10
79 ON INDEX
; Washington M
rship, and op
Y2011, SEPTA’
NG FUNDS EXPE
TING
PENDED R
518,609
099,035
025,778
164,277
557,286
ombination o
to keep a sys
f operating fu
ior citizen fre
. Figure 13 sh
mbursement is
ION SURVEY RES
LIK
N/A
91%
RANGE FRO
8.4 ON AN I
BY MODE: 7
Metro Area Trans
perated funds
’s operating f
ENDED & RIDER
RIDERSHIP
380,694
639,971
257,831
358,843
419,689
of federal, sta
stem function
unds that they
ee transit reim
hows the brea
s included, SE
SULTS (2012)
KELY TO RECOM
M 83%‐87% IN Q
NDEX SCALE OF
79% FOR RAIL AN
sportation Autho
s expended pe
funds expend
SHIP (FY2011)
OPERATING
EXPENDED PE
te, and local
ning, it is impo
y represent.
mbursements
akdown of ea
EPTA’s fare re
MEND SERVICE
QUARTERLY SUR
10
ND BUS
ority
er rider for SE
ded per rider (
FUNDS
ER RIDER
$3.99
$3.28
$7.86
$3.24
$3.71
funding and f
ortant that ag
, is approxim
ach agency’s o
ecovery ratio
RVEYS
EPTA and
($3.24)
fare
gencies
ately 38
operating
would be
EC
N
an
w
th
re
Lo
st
CA
SE
FY
an
m
co
is
“l
tr
ba
m
el
CONOMY LEAGUE OF
ew Jersey Tra
nd 46 percen
worth noting b
he most simila
ecovery due t
ocal funds ma
tatewide syst
APITAL
EPTA’s level o
Y2013 capital
nd one‐third
million), and M
omposition a
estimated at
egacy system
ransit operato
acklog of SGR
many of which
liminate its st
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
F GREATER PHILADEL
FIG
ansit and Was
t respectively
because in ter
ar of the pee
to the greater
ake a sizable s
em, has a low
of capital fund
l budget is far
of WMATA in
MBTA in Bosto
nd ridership,
t $2.7 billion,
ms,” a term th
ors in the mid
R needs, while
h are now mo
tate of good r
Wash. DC(WMATA)
LPHIA & ECONSULT S
GURE 13: PEER A
shington DC’s
y. Boston’s is
rms of modal
r agencies. As
r efficiencies
share of both
wer share of l
ding is well be
r below peer
n Washington
on ($815 milli
is a particula
roughly half
hat refers to a
d‐20th century
e SEPTA conti
re than 100 y
repair backlog
New Jersey (N
SOLUTIONS, INC. – AP
AGENCY SHARE
Source: Nationa
s system have
lowest at 30
composition
s previously e
of rail versus
h Washington
ocal funding
elow its peer
agencies – ap
n DC ($997 mi
ion). MBTA, a
rly noteworth
of SEPTA’s es
agencies respo
y. MBTA’s con
inues to conf
years old. As d
g within 20 ye
NJT) Phila. (S
PRIL 2013
35 | P a g e
OF OPERATING
al Transit Databa
e higher share
percent. SEPT
n (share of rid
explained, mo
bus transit.
, D.C.’s and C
than SEPTA.
agencies. Fig
pproximately
illion), RTA ag
an agency clos
hy reference
stimated back
onsible for ta
nsistently high
ront the chal
detailed in Se
ears if its cap
EPTA) Chic
FUNDS BY SOU
ase (2011)
es of revenue
TA’s revenue
dership by mo
odal composit
Chicago’s syst
gure 14 shows
one‐fourth o
gencies (CTA,
sely compara
point. MBTA’
klog of $4.7 b
aking over the
her levels of c
lenge of main
ection 5 of thi
ital funding le
cago (RTA) B
URCE (FY2011)
e‐funded ope
e share compa
ode), Boston a
tion has a sig
tems. Only Ne
s that at $304
of New Jersey
Metra, and P
able to SEPTA
’s state of go
billion. Both a
e assets of ba
capital fundin
ntaining and
is report, SEP
evels were on
Boston (MBTA
erating expen
ared to Bosto
and Philadelp
gnificant impa
ew Jersey Tra
4 million, SEP
y Transit ($1.1
Pace) in Chica
A in terms of a
od repair (SG
re responsibl
ankrupted priv
ng have shrun
upgrading ass
PTA could com
n par with MB
)
Fares
Other
Local
State
Federa
ses, 43%
on’s is
phia are
act on fare
ansit, a
PTA’s
15 billion),
ago ($957
age, modal
GR) backlog
le for
vate
nk its
sets,
mpletely
BTA.
Funds
al
EC
Ta
se
ca
Fi
SE
du
fu
av
st
re
re
av
CONOMY LEAGUE OF
Source
able 19 show
ervice (vehicle
apital funding
CH
NE
WA
BO
PH
So
Ne
Tra
igure 15 show
EPTA relies on
ue to SEPTA g
unding is large
vailable to SE
tates that hav
egional sales t
eceives 20 pe
vailable to so
$
$20
$40
$60
$80
$1,00
$1,20
$1,40
$1,60
$ M
illions
F GREATER PHILADEL
e: Massachusett
Transit
s capital fund
e revenue mi
g levels are cl
TAB
AGENCY
HICAGO (RTA)
EW JERSEY (NJT)
ASH. DC (WMAT
OSTON (MBTA)
HILA. (SEPTA)
urce: Massachu
ew Jersey Transit
ansit Database (
ws the share o
n federal sou
getting additi
ely formula‐b
PTA for capit
ve developed
tax and a por
rcent of all st
utheastern P
$1,352
$‐
00
00
00
00
00
00
00
00
LPHIA & ECONSULT S
FIGURE 1
ts Bay Transport
t, SEPTA, Washin
ding levels no
les) from the
early below it
BLE 19: PEER AG
PER PAS
)
TA)
setts Bay Transp
t, SEPTA, Washin
(2011)
of funding sou
rces for 60 pe
onal or high l
based. Rather
tal needs. It is
dedicated, re
rtion of the re
tate sales tax
ennsylvania.
$1
$957
SOLUTIONS, INC. – AP
14: PEER AGENCY
tation Authority
ngton Metropoli
ormalized by m
National Tra
ts peer agenc
ENCY CAPITAL B
SSENGER TRIP
$2.07
$4.36
$2.40
$2.21
$0.92
portation Author
ngton Metropoli
urces that co
ercent of cap
levels of fund
r, the differen
s also importa
egionally‐bas
eal estate tran
from its serv
1,160 $1,152
FY
PRIL 2013
36 | P a g e
Y CAPITAL BUDG
(MBTA); Region
itan Area Transp
measures of s
nsit Database
cies.
BUDGETS NORM
PER PASSE
$0
$0
$0
$0
$0
rity (MBTA); Reg
itan Area Transp
mprise the ca
ital funding. T
ding from the
nce is due to t
ant to note th
ed funding so
nsfer tax ded
ice region. Pe
$1,000 $9
2012 FY 201
GETS (FY2012‐2
nal Transportatio
portation Author
system usage
e. Based on e
MALIZED BY UNI
ENGER MILE
0.34
0.36
0.49
0.49
0.19
gional Transport
portation Author
apital budget
This high sha
federal gove
the smaller am
hat most of SE
ources for the
icated to tran
ennsylvania h
$883
997
3
013)
on Authority (RT
rity (2012‐2013)
e (passenger t
each of these
TS OF SERVICE
PER VEHICLE R
MILE
$6.96
$7.27
$7.75
$9.16
$3.47
tation Authority
rity (2012); Nati
s of SEPTA an
re relative to
ernment. In fa
mount of stat
EPTA’s peer a
eir transit sys
nsit funding. I
has not made
$815
TA); New Jersey
)
trips and mile
metrics, SEPT
REVENUE
E
6
7
5
6
7
(RTA);
ional
nd other peer
other agenci
act, federal tr
te and local f
agencies oper
stems. Chicag
In Boston, MB
these types o
$311 $304
es) and
TA’s
r agencies.
ies is not
ransit
unding
rate in
o has a
BTA
of tools
EC
3SE
re
m
re
pa
Be
th
O
th
sy
SE
ef
se
st
CONOMY LEAGUE OF
.2SEPTA&EPTA has no p
egion it serve
million residen
elies on public
assenger trip
ecause of this
he share of fu
SEPT
ALL
SEPT
Sour
*FY1
One reason fo
hat SEPTA ser
ystems. SEPTA
EPTA received
fficient than t
eries of metri
tate.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
F GREATER PHILADEL
FIGURE 1
&OTHERCOpeer among t
s. The five so
nts, which is n
c transit to an
s – 333 millio
s, SEPTA rece
unding – appr
TABLE
(000)
TA
PA TRANSIT AG
TA SHARE
rce: PennDOT Bu
11‐12 totals una
r this large di
rves the dens
A is able to m
d $1.49 in sta
the average o
cs that, toget
45%
Boston (MBT
LPHIA & ECONSULT S
15: PEER AGENC
OMMONWEAtransit agenci
utheastern co
nearly 32 perc
n extent that
on of 434 mill
eives the majo
roximately 61
E 20: SEPTA SHA
P
ENCIES
ureau of Public T
vailable. This sh
sparity betwe
est region in
maximize prod
ate operating
of all other Pe
ther, show th
45%
TA) Chicago (R
SOLUTIONS, INC. – AP
CY SHARE OF CA
Source: Nat
ALTHTRANSes in the Com
ounties accou
cent of the po
no other part
ion in 2011 –
ority of public
percent – is
ARE OF STATE TR
FY 2
PASSENGERS
333,966
434,250
76.7%
Transportation
are is estimated
een state age
Pennsylvania
ductivity due t
subsidy for e
ennsylvania tr
e relative eff
34%
RTA) New Je(NJT
PRIL 2013
37 | P a g e
PITAL FUNDS BY
ional Transit Da
SITAGENCIEmmonwealth
unt for just 5
opulation of P
t of the state
are taken on
c transit fund
well below it
RANSIT FUNDING
010‐11
TOTAL STAT
FUNDING
$652
$1,060
61
d based on numb
encies in term
a with highly e
to relatively h
each passenge
ransit agencie
iciency of SEP
%
6
erseyT)
Phila.
Y SOURCE (FY20
atabase
ESdue to the po
percent of th
Pennsylvania
e does. More t
n SEPTA each
ing in the sta
s share of pa
G & PASSENGER
TE PASSE
2,750
0,434 NOT A
1.6%
bers from FY200
ms of funding
efficient, high
high passenge
er in FY2010‐
es of $2.66 pe
PTA’s system
60%
(SEPTA) W(W
007‐2011 AVERA
opulation size
he state’s land
. This density
than 75 perce
year.
ate, although
ssengers.
RS (FY2010‐2012
FY 2011‐1
ENGERS T
339,288
AVAILABLE
76%*
08‐2009 through
received and
h‐capacity, an
er loads. On a
2011, more t
er passenger.
compared to
57%
Wash. DCWMATA)
AGE)
e and density
d and are hom
y means that t
ent of the ent
as Table 20 il
2)
12
TOTAL STATE
FUNDING
$ 672,370
$1,106,251
60.8%
FY2010‐2011
service prov
nd heavily uti
a per‐passeng
than 40 perce
. Table 21 pro
o others acros
Local
State
Other Fund
Federal
y of the
me to 4
the region
tire state’s
llustrates,
ided is
lized
ger basis,
ent more
ovides a
ss the
ds
EC
(N
fr
ar
CONOMY LEAGUE OF
Note that the
rom PennDOT
re from the N
SH
SH
ST
So*Cpr
F GREATER PHILADEL
shares of op
T’s Bureau of
National Trans
TABLE 21:
HARE OF OPERA
HARE OF OPERA
TATE OPERATIN
ource: PennDOT,Calculated by divrovided to trans
LPHIA & ECONSULT S
erating budge
Public Transp
sit Database d
OPERATING ME
ATING BUDGET P
ATING BUDGET P
G FUNDS PER P
T, Bureau of Publviding total numit systems exclu
SOLUTIONS, INC. – AP
et provided b
portation and
due to differe
ETRICS FOR SEPT
PROVIDED BY ST
PROVIDED BY RE
ASSENGER
lic Transportatiomber of passengeding SEPTA
PRIL 2013
38 | P a g e
by the state a
d differ slightl
ent reporting
TA VS. OTHER P
TATE
EVENUES
on Annual Reporers served by all
nd by revenu
ly from figure
methodologi
PA TRANSIT AGE
SEPTA
45
42
$1
rt systems by tota
ues in this tab
es used earlie
ies.)
ENCIES (FY2010‐
ALL OTRANSI
.4%
.3%
1.49
al state operatin
ble are based
r in this secti
2011)
OTHER PA T SYSTEMS
50.1%
25.0%
$2.66*
ng funds
on figures
on that
EC
SOTh
ac
ov
an
Se
SE
am
It
SE
ef
Se
4
4W
flu
in
Co
Ta
ap
pe
w
de
la
en
es
re
de
as
28
Deco
CONOMY LEAGUE OF
SECTION4OPERATIOhe purpose o
ctivity within
verall econom
nnual activity
ection 4.1 cov
EPTA operatio
mount of stat
should be no
EPTA direct e
ffects are not
ection 5.
4.1ECONOM
.1‐1METHOD
With the recen
uctuated grea
nvestment by
ommonwealt
able 22 summ
ppropriate. S
ercentages of
well as the typ
epartments a
arge project b
ngineering de
stimate the in
econstruction
epartmental
ssumptions w
This analysis appoepartments, for exould be a noticeab
F GREATER PHILADEL
4:ECONOMONSf this section
southeastern
mic and fiscal
y.
vers the econ
ons; Sections
te tax revenu
oted that the
xpenditures a
t taken into a
MICIMPACTO
DOLOGYnt economic r
atly over the
using a five‐y
th and within
marizes the tr
orting project
f expenditure
pes of services
allocated thei
being carried o
epartments. T
nvestment all
ns and large e
budgets. Whe
were made to
ortions investmentxample. While the le amount of varia
LPHIA & ECONSULT S
MICIMPA
is to analyze
n Pennsylvani
impacts, incl
nomic impacts
4.3, the fisca
e generated
economic an
and do not ca
ccount in sta
OFSEPTAC
recession and
past five yea
year average
southeastern
eatment of S
t spending al
es that go to g
s being perfo
r investment
out by the Co
The spending
location for a
equipment acq
ere project co
place other n
t for the New Vehibudgets of the latance between esti
SOLUTIONS, INC. – AP
ACTOFSE
the breadth
ia and on the
uding the em
s of SEPTA’s c
al impacts of S
by SEPTA inve
nd fiscal impac
apture the cat
ndard econom
CAPITALINV
d the availabil
rs. This analy
of SEPTA cap
n Pennsylvan
EPTA's expen
locations into
geographies o
rmed. Where
based on ind
ommunication
pattern for t
ll projects in
quisitions, we
ontract inform
non‐allocated
icles, Transit polictter three departmmated Commonw
PRIL 2013
39 | P a g e
EPTACAP
of SEPTA’s in
Commonwe
mployment, ea
capital invest
SEPTA’s capit
estment; and
ct estimates p
talytic effects
mic impact m
VESTMENTS
lity of Act 44
ysis levels out
pital investme
ia.
nditures, noti
o industries re
of interest (i.e
e available, la
dustry and ge
ns and Signals
his project, w
these depart
ere also consi
mation or pro
d project cost
e, Vehicle Engineements are low, thewealth and regiona
PITALINV
nvestments an
alth as a who
arnings, and t
ments; Sectio
tal investmen
d Section 4.4,
provided belo
s of transit on
modeling, but
and ARRA fun
t the large ris
ent to determ
ng exclusions
equires detai
e.: southeaste
rge projects a
ography. For
s Departmen
which is know
tments. Other
idered for the
oxies were no
ts within geog
ering & Maintenanere was considerabal activity and the
VESTMENT
nd operations
ole. The repo
tax revenues
on 4.2, the ec
nt and operat
a summary o
ow represent
n overall econ
are addresse
nds, SEPTA’s
ses and declin
mine its econo
s and assump
led contract i
ern Pennsylva
are used to m
example, Po
t and support
wn in detail, w
r large projec
e purposes of
ot available, c
graphies and
nce, and the Informble investment in actual activity.
TS&
s on overall e
ort estimates
associated w
conomic impa
ions, includin
of the three a
t only those r
nomic activity
ed in this repo
capital budge
nes in capital
omic impacts
ptions where
information o
ania and stat
model how
sitive Train C
ted by severa
was used as a
cts, such as st
f allocating
conservative
industry cate
mation Technolognew vehicles and
economic
SEPTA’s
with its
act of
ng the
nalyses.
elated to
y. Catalytic
ort in
et has
across the
on the
ewide), as
ontrol is a
al
proxy to
ation
egories.28
gy therefore
EC
CA
CA
CA
CA
CA
CO
EN
EN
EN
EN
EN
EL
IN
N
N
RE
RE
SA
SE
ST
SU
TR
VE
TO
So
Ta
w
in
Ca
m
CONOMY LEAGUE OF
APITAL BUDGET
APITAL CONSTR
APITAL CONSTR
APITAL CONSTR
APITAL CONSTR
OMMUNICATIO
NGINEERING &
NGINEERING &
NGINEERING &
NGINEERING &
NGINEERING &
LECTRICAL FACIL
NFORMATION TE
EW PAYMENT T
EW VEHICLES
EAL ESTATE
EVENUE & MAR
AFETY AND RISK
ERVICE PLANNIN
TRATEGIC PLAN
UPPLY CHAIN M
RANSIT POLICE
EHICLE ENGINEE
OTAL
ource: SEPTA (20
able 23 show
was associated
nclude repair
REAL EST
PROFESSI
WASTE M
OTHER SE
CONSTRU
MOTOR V
OTHER TR
PUBLISHI
WHOLESA
TOTAL ($
Source: SE
apital investm
more than 2,00
F GREATER PHILADEL
TABLE 22: SEPT
SEPTA DE
TS
RUCTION‐ BLUE L
RUCTION ‐ RAIL F
RUCTION ‐ SPECI
RUCTION ‐ TRAN
ONS
MAINTENANCE
MAINTENANCE
MAINTENANCE
MAINTENANCE
MAINTENANCE
LITIES
ECHNOLGOY
TECHNOLOGIES
RKET DEVELOPM
K MANAGEMENT
NG
NING AND ANA
MANAGEMENT
ERING & MAINT
013), ESI (2013)
s that a majo
d with the con
and general m
TABL
IN
ATE
IONAL, SCIENTIF
MANAGEMENT A
ERVICES
UCTION
VEHICLE, BODY,
RANSPORTATIO
NG INDUSTRIES
ALE TRADE
M)
EPTA (2013), ESI
ment data pro
00 discrete ca
LPHIA & ECONSULT S
TA COMPOSITIO
EPARTMENT
LINE STRUCTUR
FACILITIES
AL PROJECTS
NSIT FACILITIES
‐ ADMIN/FINAN
‐ BRIDGES/ BUI
– COMMUNICA
– POWER
– TRACK
MENT
T
ALYSIS
TENANCE
ority of SEPTA
nstruction cat
maintenance
LE 23: SEPTA CA
NDUSTRY
FIC, AND TECHN
AND REMEDIATI
TRAILER, AND P
ON EQUIPMENT
S, EXCEPT INTER
I (2013)
ovided by SEP
apital expend
SOLUTIONS, INC. – AP
ON OF DEPARTM
ES
NCE
LDINGS
ATIONS & SIGNA
A’s capital inve
tegory, includ
largely assoc
APITAL EXPENDIT
NICAL SERV.
ION
PARTS MFG.
MFG.
RNET
PTA was categ
diture line item
PRIL 2013
40 | P a g e
MENTAL CAPITA
AVERAANNU
INVESTM
$50,29
$97,36
$27,98
$11
$17,52
$6
$39,19
$9,87
ALS $36,05
$10,10
$2,72
$80
$2,14
$4,94
$97,84
$49
$60
$1,69
$3
$
$1
$3,53
$4,08
$407,49
estment with
ding renovatio
ciated with th
TURES BY INDUS
PEN
INDUSTRYSPENDING
($M)
$0.4
$18.6
$1.6
$50.2
$190.0
$9.5
$17.3
$0.2
$0.4
$288.7
gorized and in
ms between
L INVESTMENT
AGE UAL MENT
PA S
90,975 $50,
60,256 $83,
86,835 $23,
17,353 $
27,956 $15,
60,333
97,946 $33,
75,720 $8,
57,810 $30,
05,017 $8,
24,163 $2,
06,586 $
40,775 $
44,806 $
43,267 $23,
91,317 $
00,529 $
90,343 $1,
35,163
$8,146
14,687
32,203 $
84,921 $3,
97,106 $288,
hin the Comm
ons of station
he vehicle flee
STRY (FY2008‐2
NNSYLVANIA
Y G
INDUSTRPERCENTA
49 0
67 6
69 0
29 17
04 65
56 3
39 6
21 0
43 0
78 100
nput into ESI’
FY2008 and F
(FY2008‐2012, A
SHARE SOPA
,290,975 $5
,402,690 $7
,974,642 $2
$100,529
,015,148 $1
$57,678
,578,529 $3
,459,937 $
,888,562 $2
,656,362 $
,333,627 $
$690,954
$214,078
$906,877
,689,472 $1
$491,317
$600,529
,690,343 $
$35,163
$8,146
$1,756
$430,430
,267,937 $
,785,680 $26
monwealth du
ns and faciliti
et.
012, AVERAGE)
SO
RY AGE
INDUSTRSPENDIN
($M)
0.2% $0
6.5% $17
0.6% $1
7.4% $50
5.8% $171
3.3% $9
6.0% $13
0.1% $0
0.1% $0
0.0% $264
’s economic i
FY2012 were
AVERAGE)
UTHEAST A SHARE
INO
50,290,975
75,576,872
21,725,060
$91,096
13,606,251
$483
30,427,798
$7,666,127
27,990,236
$7,844,120
$2,114,658
$626,120
$214,078
$906,877
19,340,882
$491,317
$600,529
$1,690,343
$35,163
$8,146
$1,756
$430,430
$3,267,937
64,947,254 $
ring this time
es. Other cat
OUTHEAST PA
RY NG
INDUSTPERCENT
.49
.90
.69
.29
.32
.56
.04
.21
.43
.94 100
mpact model
sorted into d
NVESTMENT OUTSIDE OF
PA
$0
$13,957,566
$4,012,193
$16,824
$2,512,808
$2,655
$5,619,418
$1,415,783
$5,169,248
$1,448,655
$390,536
$115,632
$1,926,698
$4,037,929
$74,153,795
$0
$0
$0
$0
$0
$12,931
$3,101,773
$816,984
$118,711,426
e period
egories
TRY TAGE
0%
7%
1%
19%
65%
3%
5%
0%
0%
0.0%
l. The
ifferent
EC
gr
de
CONOMY LEAGUE OF
roups based o
epartments in
Nonspen
F GREATER PHILADEL
on the similar
n the analysis
FIGURE 16: ME
n-local, non-snding dropped
LPHIA & ECONSULT S
rity of cost ou
s excluded ou
ETHODOLOGY T
state d out
Expenby
Total cRIMS
SOLUTIONS, INC. – AP
utlays. The fiv
ut‐of‐state an
TO CALCULATE E
Sou
2,166 capititems from
FY
Projects sunique de
Five yearsactivity av
each de
Non-local, costs retaine
mo
nditures appoRIMS II categ
costs aggregaII category aninto the mode
PRIL 2013
41 | P a g e
ve‐year avera
d out‐of‐regio
CONOMIC IMPA
urce: ESI (2013)
al project linem FY2008 to
2012
split into 23 epartments
s of spending eraged from epartment
state project ed in the stateodel
ortioned gory
ated by nd input el
ge capital exp
on investmen
ACTS OF SEPTA’
e
e Lo
retai
penditures fo
nt.
S CAPITAL INVE
ocal, state proned in both s
local mode
Expenditurby RIMS
Total costsRIMS II cat
into t
or each of the
ESTMENTS
ojects state and els
res apportioneS II category
s aggregated tegory and inpthe model
e 23
ed
by put
EC
4To
fr
es
w
Co
Ta
Co
$2
m
th
M
29
30
31
CONOMY LEAGUE OF
.1‐2ECONOMo obtain the f
rom each of t
stimated that
within southea
ommonwealt
able 24 show
ommonwealt
214 million in
million in total
he southeaste
Maryland likely
Much of SEPTA’s cFor more detail onFigures for both th
F GREATER PHILADEL
MICIMPACTESfive‐year dire
he capital bu
t 71 percent o
astern Pennsy
th reach close
s that based
th of Pennsylv
n earnings. W
expenditure
ern Pennsylva
y reduces the
TA
FIVE‐YE
PERCEN
DIRECT
INDIREC
TOTAL O
TOTAL E
TOTAL ESource: E
capital investmentn the breakdown ohe economic and f
LPHIA & ECONSULT S
STIMATESct capital inv
dget’s 23 dep
of SEPTA’s dir
ylvania.29 Exc
e to 85 percen
on these pro
vania yielded
Within southea
s annually, su
ania’s proxim
e in‐state imp
ABLE 24: ANNUA
AR AVERAGE IN
NT SPENT IN GEO
OUTPUT ($M)
CT & INDUCED O
OUTPUT ($M)
EMPLOYMENT (J
EARNINGS ($M)ESI (2013)
t is site‐specific, anof Capital Spendinfiscal impact table
SOLUTIONS, INC. – AP
estment (sho
partments we
rect capital in
luding vehicle
nt.
portions, $28
$673 million
astern Pennsy
upporting 4,0
ity to out‐of‐s
pact of this inv
AL ECONOMIC IM
NVESTMENT
OGRAPHY
OUTPUT ($M)
JOBS)
nd therefore falls ng See Appendix Bs are shown in 20
PRIL 2013
42 | P a g e
own in Table 3
ere aggregate
nvestment occ
e purchases, S
89 million of d
n in total expe
ylvania, $265
079 jobs and $
state neighbo
vestment fro
MPACT OF SEPT
PENNS
in southeastern Pe. 10 dollars.
30 as “Direct
ed and sorted
curs in Penns
SEPTA capita
direct capital
enditures ann
million in dir
$170 million i
oring countie
m even great
TA’S CAPITAL INV
SYLVANIA
$407
71%
$289
$384
$673
5,065
$214
ennsylvania.
Output”), ave
d by RIMS II ca
sylvania, and
l investments
investment (
nually, suppor
rect expendit
in earnings. It
s in New Jers
ter levels.30
VESTMENT31
SOUTHEAST PA
$4
6
$2
$3
$5
4,0
$1
erage expend
ategory. From
65 percent o
s in the
Direct Outpu
rting 5,065 jo
ures produce
t should be no
sey, Delaware
A
407
65%
265
305
570
079
170
ditures
m this, it is
ccurs
t) in the
obs and
ed $570
oted that
e, and
EC
4
4Co
le
To
go
ap
an
re
Th
ap
pu
ex
pr
ad
op
se
of
32
CONOMY LEAGUE OF
4.2ECONOM
.2‐1METHOD
ompared to it
ess than three
o estimate th
oods" approa
pproach is als
nticipated by
esults.
he preponder
pproximately
urchased serv
xpenses are e
roductive (i.e
djustments, it
perations is $
ervices produ
f SEPTA's exp
Inclusive of post‐e
F GREATER PHILADEL
MICIMPACTO
DOLOGYts capital bud
e percent (inf
he economic i
ach, which acc
so warranted
the aggregat
rance of SEPT
y $856 million
vices, and fin
excluded beca
e., do not hav
t is estimated
$1.06 billion, w
uced and payr
penditures, no
employment bene
LPHIA & ECONSULT S
OFSEPTAO
dget, SEPTA's
lation‐adjuste
mpact of SEP
counts for the
because the
te multipliers
TA's $1.23 bill
n.32 The remai
ancing expen
ause they are
e a multiplier
d that the dire
with $166 mi
roll taxes paid
oting exclusio
fits.
SOLUTIONS, INC. – AP
OPERATION
operating bu
ed) each year
PTA’s operatio
e specific out
percentage o
, which mean
lion operating
ining $345 mi
nses. For the p
e both out‐of‐
r effect), such
ect economic
llion 'leaking'
d to the Fede
ons and assum
PRIL 2013
43 | P a g e
S
udget has bee
r since 2007 (
ons, this analy
tlays of dollar
of SEPTA's bu
ns that relying
g expenditure
illion is distrib
purpose of th
‐state and out
h as certain fin
impact (actu
' out of the st
ral Governme
mptions wher
en relatively s
(See Section 3
ysis employe
rs reflected in
udget devoted
g on those mu
e is allocated
buted across
he economic i
t‐of‐region, o
nancing and a
ual operating
tudy area thro
ent. Table 25
re appropriate
stable over re
3.1).
d the more d
n SEPTA’s ope
d to labor is m
ultipliers wou
to labor – an
fuel, materia
impact mode
or they are no
accounting co
expenditures
ough expend
summarizes
e.
ecent years, r
ata‐intensive
erating budge
much higher t
uld yield inacc
n amount of
als, insurance,
l, some of the
ot economica
osts. After the
s) of SEPTA’s
itures on goo
the analysis’
ising by
e "bill‐of‐
et. This
than
curate
,
ese
lly
ese
ods and
treatment
EC
Ta
Th
th
CONOMY LEAGUE OF
able 26 show
here were als
herefore are e
E
TOTAL LABOR C
SALARIES & B
POS
FUEL (GASOLIN
PURCHASED SE
MATERIALS AN
UTILITIES (INCL
INSURANCE AN
PURCHASED TR
MISCELLANEOU
LEASE AND REN
INTEREST, DEP
TOTAL SEPTA O
TOTAL SEPTA A
F GREATER PHILADEL
s that SEPTA'
so 792 capital
excluded here
EXPENSE CATEG
COST
ENEFITS TO CUR
ST EMPLOYMENT
(EXC
NE & DIESEL)
LO
TRUCK TRANS
WH
(EXC
ERVICES
(EXC
ND SUPPLIES
TRUCK TRANS
WH
(EXC
LUDING PROPUL
PRO
(EXC
ND CLAIMS
INS
(EXC
RANSPORTATIO
TRANSPOR
(EXC
US OPERATING
MISCELLANEOU
(EXC
NTAL EXPENSES
ITEMS L
(EXC
RECIATION, AM
(EXC
OPERATION BUD
(TOTAL EXC
ADJUSTED BUDG
LPHIA & ECONSULT S
TABLE 25: SEPT
's operating b
l jobs, which
e to avoid do
ORY
RRENT EMPLOYE
T COMPENSATIO
CLUDED EXPENSE
OCAL PRODUCTIO
SPORTATION CO
HOLESALE MARG
RETAIL MARG
CLUDED EXPENSE
LOCAL SERVIC
CLUDED EXPENSE
SPORTATION CO
HOLESALE MARG
RETAIL MARG
CLUDED EXPENSE
LSION POWER)
OPULSION POW
OTHER ELECTR
HEATING O
OTHER UTILIT
CLUDED EXPENSE
URANCE SERVIC
CLUDED EXPENSE
N SERVICES
RTATION SERVIC
CLUDED EXPENSE
EXPENSES
US LOCAL SERVIC
CLUDED EXPENSE
LEASED IN REGIO
CLUDED EXPENSE
MORTIZATION
CLUDED EXPENSE
DGET
CLUDED EXPENSE
GET
SOLUTIONS, INC. – AP
TA OPERATING E
budget for FY2
are included
uble counting
OPERAEXPENEXCLUS
$855,790,
EES $643
ON $145
ES) ($66,
$42,025,1
ON $32
OST
GIN $7
GIN
ES) ($
$56,436,2
CES $56
ES) ($
$46,962,2
OST $1
GIN $4
GIN
ES) ($41,
$52,995,4
WER $35
RIC $9
OIL $1
IES $7
ES)
$66,266,5
CES $48
ES) ($17,
$67,152,9
CES $67
ES)
$3,559,61
CES $2
ES) ($1,
$2,624,67
ON $2
ES) ($
$38,449,3
ES) ($38,
$1,232,26
ES) ($166,
$1,066,06
PRIL 2013
44 | P a g e
EXPENSES WITH
2012 reports
in the analys
g.
ATING SES & SIONS
117 EXCCOSEMTO
3,637,245
5,812,729
,340,143)
10
FUELOC
2,870,998
$799,373
7,419,988
$580,190
$354,561)
69
PUR6,174,485
$261,784)
33
MAWHLOC
1,173,176
4,079,935
$7,509
,701,612)
70
UTIREFPRO
5,518,542
9,088,836
1,058,154
7,329,937
$0
79
INS8,840,061
,426,518)
31 INCAM
7,152,931
$0
1
MIS2,128,613
,430,998)
0
LEA2,402,670
$222,000)
36 FINACON,449,336)
2,326
,195,881)
6,445
H ADJUSTMENTS
a total headc
is of capital in
CLUDED EXPENSSTS. ALL WORKEPLOYMENT PROCONTRIBUTION
EL COSTS ASSUMCAL REFINERIES.
RCHASED SERVIC
ATERIALS ASSUMHOLESALER, ANDCAL, BUT MATER
LITIES ASSUMESFINERIES, ALL OTOVIDERS.
URANCE NET OF
CLUDES PARATRATRAK.
SCELLANEOUS EX
ASE EXCLUDES RE
ANCING AND ACNSIDERED OUTP
S (FY2013)
count of 8,64
nvestment (S
NOTES
ES ARE PRIMARERS ASSUMED TOOGRAM PAYOUTS.
MES GASOLINE A
CES EXCLUDES C
MES TRUCK TRAND RETAILER (WHERIALS ARE PROD
S FUEL OIL COMTHER UTILITIES T
F RESERVES.
ANSIT AND SERV
XCLUDES FINAN
ENTAL OF TRENT
CCOUNTING COSPUT IN THE MOD
45 operating j
ection 4.1) an
ILY SOCIAL INSUO LIVE IN REGIOTS ASSUMED TO
AND DIESEL COM
CONTINGENCIES
NSPORTATION, ERE APPLICABLEUCED OUT OF S
ES FROM LOCALTHROUGH LOCA
VICES PURCHASE
CING COSTS.
TON STATION.
STS ARE NOT DEL.
obs.
nd
URANCE N. POST‐BE EQUAL
MES FROM
E) ARE TATE.
L L UTILITY
ED FROM
EC
4SE
pl
lo
fu
$1
Ta
an
so
(1
Ta
w
in
se
33
CONOMY LEAGUE OF
.2.2ECONOMEPTA's annua
lus an additio
ocal firms (inc
uel, parts, and
1.06 billion in
able 27 show
nd induced ec
outheastern P
19,971 in sout
able 28 show
worker earning
nduced earnin
ervices gener
For modeling purp
F GREATER PHILADEL
T
ICIMPACTESal operations
onal $145.8 m
cluding insura
d supplies) co
n direct opera
s that in addi
conomic activ
Pennsylvania)
theastern Pen
s that worker
gs are associa
ngs impacts st
ate an additio
poses, this analysi
LPHIA & ECONSULT S
TABLE 26: OPERA
ADMINISTR
SURFACE TR
CONTROL C
CUSTOMIZE
LABOR RELA
TRANSIT PO
RAIL TRANS
VEHICLE EN
VEHICLE EN
CORPORATE
AUDIT, SAF
BUSINESS S
CUSTOMER
ENGINEERIN
FINANCE AN
HUMAN RES
LEGAL, REA
PUBLIC AND
PUBLIC AND
TOTAL DIRESource: SEPTA*Does not inc
TIMATESdirectly supp
million in pens
ance, professi
onstitute an a
ational invest
ition to the 8,
vity is estimat
). In total, SEP
nnsylvania).
TABLE 27: AN
EMPLOYM
DIRECT OPE
INDIRECT &
TOTAL JOBS
Source: ESI
rs that directl
ated with a m
temming from
onal $448 mi
s assumes the pay
SOLUTIONS, INC. – AP
ATING EMPLOYE
HEADCO
RATION
RANSPORTATIO
CENTER
ED COMMUNITY
ATIONS
OLICE
SPORTATION
GINEERING & M
GINEERING & M
E STAFF
ETY, AND INVES
ERVICES
SERVICE AND A
NG, MAINTENAN
ND PLANNING
SOURCE
L ESTATE, AND C
D GOVERNMENT
D OPERATIONAL
ECT JOBS* A (2013), ESI (2013clude Capital Empl
ort 8,645 job
sion and othe
onal services
dditional $27
ment.
,645 jobs dire
ted to suppor
PTA's operati
NNUAL EMPLOYM
MENT IMPACTS
ERATING JOBS
& INDUCED JOBS
S
(2013)
ly benefit fro
multiplier effe
m worker re‐s
llion in earnin
yments out of the
PRIL 2013
45 | P a g e
EE HEADCOUNT
UNT
N
Y TRANSPORTAT
MAINTENANCE (
MAINTENANCE (
STIGATIVE SERV
ADVOCACY
NCE & CONSTRU
CLAIMS
T AFFAIRS
L SAFETY
3)loyees
s earning an
er post‐emplo
s, and utilities
76.6 million in
ectly supporte
rt an addition
ons support a
MENT IMPACTS
PENNSYLVA
8,
S 12,
20,
m SEPTA ope
ct that ripple
spending as w
ngs for worke
post‐employment
T BY DEPARTMEN
OPEREMPL
TION
(BUS)
(RAIL)
VICES
UCTION
aggregate $6
oyment benef
s) and materia
n local direct
ed by SEPTA's
nal 12,022 job
a total of 20,6
S OF SEPTA OPER
ANIA SOUTHEA
645
022
667
erations earn
s through the
well as SEPTA
ers in the Com
t system are equa
NT (FY2013)
RATING LOYEES
12
2,967
103
39
14
268
1,443
891
890
17
17
210
94
1,183
187
153
53
21
83
8,645
643.6 million i
fits.33 Purchas
als from local
investment, f
s annual oper
bs in the Com
667 jobs in th
RATIONS
AST PA
8,645
11,326
19,971
$789 million
e economy. T
A's purchases
mmonwealth
l to current contri
in salaries an
ses of service
l vendors (inc
for an annual
rations, the in
mmonwealth (
he Commonw
per year. The
The indirect a
of local good
($412 million
butions to it.
d benefits,
es from
cluding
total of
ndirect
(11,326 in
wealth
ese direct
nd
ds and
n in
EC
so
w
Ta
m
in
bi
SE
ea
4
4Th
si
bu
th
ac
an
34
th
CONOMY LEAGUE OF
outheastern P
workers in Pen
able 29 show
million in post‐
ndirect and in
illion in south
EPTA annual o
arnings to the
4.3FISCALIM
.3‐1CAPITALhe total econ
gnificant tax
usiness taxes
hat the Comm
ctivity resultin
nd induced sa
Direct Output is those expenditures.
F GREATER PHILADEL
Pennsylvania)
nnsylvania ($1
T
T
S
s that operat
‐employment
duced invest
heastern Penn
T
D
IN
T
T
T
S
operations re
e region, supp
MPACTSON
LINVESTMENTomic activity
revenue to th
, indirect and
monwealth is
ng from capit
ales tax, and $
he total adjusted o. Household spend
LPHIA & ECONSULT S
). Combined,
1.201 billion i
TABLE 28: A
EARNINGS IMP
DIRECT EARNIN
POST‐EMPLOYM
TOTAL DIRECT E
INDIRECT AND I
TOTAL EARNING
Source: ESI (201
tional expend
t benefits) als
ment for a to
nsylvania).
TABLE 29: A
ECONOMIC MP
TOTAL MODELED
DIRECT OUTPUT
NDIRECT & INDU
TOTAL OUTPUT (
TOTAL EMPLOYM
TOTAL EARNING
Source: ESI (2013
epresent an o
porting 20,66
THECOMMO
TSrelated to SE
he Commonw
d induced spe
estimated to
tal investmen
$0.7 million in
operational expending by retirees do
SOLUTIONS, INC. – AP
SEPTA’s oper
n southeaste
ANNUAL EARNIN
PACTS ($ MILLIO
GS TO EMPLOY
MENT EARNINGS
EARNINGS
INDUCED EARNI
GS
3)
itures (Direct
so has an eco
otal of $2.53 b
ANNUAL ECONO
PACTS ($ MILLIO
D EXPENDITURE
($M)34
UCED OUTPUT (
($M)
MENT (JOBS)
S ($M)
3)
output to the
67 jobs.
ONWEALTH
EPTA's annual
wealth of Pen
ending is only
receive appr
nt, comprised
n indirect and
diture less post‐emoes contribute to in
PRIL 2013
46 | P a g e
rations suppo
ern Pennsylva
NGS IMPACTS O
ONS) PENNSY
EES
S
INGS
t Output) of $
nomic ripple
billion in econ
OMIC IMPACT O
ONS) PENNSY
E ($M)
($M)
economy of $
l in‐state dire
nsylvania. Sin
considered f
roximately $1
of $5.2 millio
d induced bus
mployment benefnduced jobs and e
ort a total of $
ania).
OF SEPTA OPERA
YLVANIA SOUT
$644
$146
$789
$448
$1,237
$920.2 million
effect, result
nomic output
OF SEPTA OPERA
YLVANIA SOU
$1,066
$920
$1,613
$2,533
20,667
$1,237
$2.53 billion,
ect capital exp
nce SEPTA itse
for SEPTA’s ca
11.9 million in
on in state inc
siness tax.
its, as there is no dearnings.
$1.237 billion
ATIONS
THEAST PA
$644
$146
$789
$412
$1,201
n ($1.06 billio
ting in an add
t in the Comm
ATIONS
UTHEAST PA
$1,066
$920
$1,586
$2,506
19,971
$1,201
which contri
penditures is
elf is exempt
apital investm
n annual tax r
come tax, $6.
direct economic p
n in earnings f
on net of the $
ditional $1.61
monwealth ($
butes $1.23 b
estimated to
from sales an
ments. Table 3
revenue from
.0 million in in
production associa
for
$145.8
billion in
2.51
billion in
o generate
nd
30 shows
economic
ndirect
ted with
EC
4Ta
th
A
ta
4Ta
4.
CONOMY LEAGUE OF
.3‐2OPERATable 31 show
hem is estima
s with capital
ax revenues, s
4.4SUMMARables 32 and
.3.
F GREATER PHILADEL
TABLE 30: AN
IONSs that SEPTA'
ated to gener
l investment,
since SEPTA it
TABLE 3
RYOFECONO33 provide a
TABLE 32:
DIRECT
INDIRE
TOTAL
TOTAL
TOTAL
TOTAL Source:
TABLE 33: SUM
DIRECT
INDIRE
TOTAL
TOTAL
TOTAL Source:
LPHIA & ECONSULT S
NNUAL FISCAL IM
INCOME
SALES T
BUSINE
TOTAL T
Source:
's annual ope
ate approxim
only indirect
tself is tax‐ex
1: ANNUAL FISC
INCOME
SALES T
BUSINES
TOTAL T
Source:
OMIC&FISCsummary of S
SUMMARY OF
($ MILLION
T OUTPUT
CT & INDUCED O
OUTPUT
EMPLOYMENT
EARNINGS
TAX REVENUES ESI (2013)
MMARY OF SEPT
($ MILLION
T OUTPUT
CT & INDUCED O
OUTPUT
EMPLOYMENT
EARNINGS ESI (2013)
SOLUTIONS, INC. – AP
MPACT OF SEPTA
REVENUE SOUR
E TAX
TAX
SS TAX
TAX
ESI (2013)
ration and th
mately $50.6 m
t and induced
xempt.
CAL IMPACT OF
REVENUE SOUR
E TAX
TAX
SS TAX
TAX
ESI (2013)
CALIMPACTSSEPTA’s econ
SEPTA’S ECONO
NS)
OUTPUT
TA’S ECONOMIC
NS)
OUTPUT
PRIL 2013
47 | P a g e
A’S CAPITAL INV
RCE
he indirect an
million in tax r
d effects are c
SEPTA’S OPERA
RCE
Snomic and fisc
OMIC & FISCAL IM
CAPITAL INVESTMEN
$
$
$
5,
$
& FISCAL IMPA
CAPITAL INVESTMEN
$
$
$
4,
$
VESTMENTS ON
PENNSYLVANIATAX REVENUES(MILLIONS)
$5
$6
$0
$11.
d induced ec
revenue to th
considered wh
ATIONS ON THE C
PENNSYLVANIATAX REVENUES(MILLIONS)
$3
$1
$
$5
cal impacts as
MPACTS ON TH
L NT
OPERATI
$289
$384 $1
$673 $2
,065 20
$214 $1
$12
ACTS ON SOUTH
L NT
OPERATI
$265
$305 $1
$570 $2
,079 19
$170 $1
THE COMMON
A S
.16
.03
.71
.90
onomic activ
he Commonw
hen estimatin
COMMONWEAL
A S
1.8
6.8
2.0
0.6
s described in
E COMMONWE
IONS TOTAL
$920 $1,2
1,613 $1,9
2,533 $3,2
0,667 25,7
1,237 $1,4
$51 $
EASTERN PENN
IONS TOTAL
$920 $1,1
1,586 $1,8
2,506 $3,0
9,971 24,0
1,201 $1,3
WEALTH
ity that result
wealth of Pen
ng sales and b
LTH
n Section 4.1,
EALTH
L
09
97
06
32
51
62
SYLVANIA
L
85
92
77
50
71
t from
nsylvania.
business
4.2, and
EC
SF
5D
co
Co
th
th
Co
cr
co
en
ec
Th
Pe
of
Ec
a
an
in
SE
5(2In
SE
jo
th
ef
Sp
35
Gr36
us
CONOMY LEAGUE OF
SECTION5FUNDINGS
5.1OVERVIEespite the fac
ommunities i
ommonwealt
he Commonw
hat transit pla
ommonwealt
reation, incom
ompetitivene
nvironmenta
conomies:
‐ Transit
(most
‐ Transit
‐ Transit
‐ Transit
marke
‐ Transit
reside
his section wi
ennsylvania e
f reductions o
conomy Leag
proposal to i
nalysis focuse
ncrease the co
EPTA system.
5.2ALOOKB2007)n southeaster
EPTA service
oint report, w
hat transporta
ffects on jobs
pecifically, th
See the The Price reater PhiladelphiaTo estimate impacsed published rese
F GREATER PHILADEL
5–LONG‐SHORTFA
EWct that reduci
n the Commo
th’s ability to
wealth to lowe
ays in sustaini
th’s metropol
me generatio
ess of the regi
l quality, and
t reduces ove
importantly t
t use lowers c
t lowers trave
t service supp
tplace ‐ it is w
t investment
nts—urban, s
ill document
economy and
of SEPTA serv
ue and Econs
ncrease SEPT
es on the long
ost of providi
BACK:IMPA
rn Pennsylvan
provides sign
which examine
ation and tim
s, real estate v
e analysis fou
of Inaction: An Ana in conjunction wcts, the team workearch to assess the
LPHIA & ECONSULT S
TERMIMALLS
ing transit op
onwealth, som
invest in oth
er taxes. This
ing and impro
litan areas an
n, and prope
on and the C
indirectly thr
erall costs of t
travelers’ tim
costs associat
el‐related pol
ports higher r
well establish
allows the re
suburban, and
and quantify
provide estim
vices for jobs,
sult Corporati
TA transit fare
ger run conse
ng transit ser
ACTANALYS
nia, SEPTA’s tr
nificant benef
ed a proposed
me costs for tr
value, and tax
und that with
nalysis of Economicwith Econsult Corpoked with the DVRPe implications of th
SOLUTIONS, INC. – AP
MPACTSOF
erations and
me argue that
er areas (whi
argument is
oving the eco
nd counties. S
rty value in so
ommonwealt
rough transit’
travel by lowe
e);
ted with auto
lution and re
residential an
ed that produ
egion and Com
d ex‐urban. A
the role that
mates of the
and property
ion 2007 repo
es by 30 perce
equences of u
rvice, and ulti
SISOFSEPT
ransit service
fits to riders b
d 30 percent
ransit users an
x revenue in
the propose
c Impacts Associatoration, April 2007PC transportation he reduction in tra
PRIL 2013
48 | P a g e
FSEPTA’S
investment w
t reductions i
ch, they argu
flawed, howe
onomic compe
Specifically, t
outheastern P
th directly be
’s role in supp
ering congest
o travel fatalit
educes negati
d commercia
uctivity is enh
mmonwealth
Additionally, t
t transit plays
impact of SEP
y values. The
ort entitled “T
ent and reduc
underfunding
mately unde
A’SPROPOS
es, along with
but also to dri
fare increase
nd motorists
southeastern
d fare increas
ted With SEPTA’s F7. Reported dollamodel to evaluateansit services for th
SCAPITA
would cause c
in funding for
ue, may have
ever, because
etitiveness an
ransit is nece
Pennsylvania
ecause of its im
porting efficie
tion, which in
ties and injuri
ve externaliti
al densities th
hanced in den
to provide a
transit increa
s in the compe
PTA’s service
e following an
The Price of In
ce transit ser
transit capita
rmine the via
SEDFAREIN
highways, ar
ivers through
e coupled with
increased sig
n Pennsylvani
ses and servic
FY 2008 Operatingr figures are in 200e the travel impache regional econo
L&OPER
considerable
r transit woul
similar econo
e it fails to rec
nd quality of
essary for eco
, public trans
mpacts on tra
ent spatial str
n turn, saves v
ies;
ies of automo
hat are increa
nse environm
variety of loc
ases travel op
etitiveness of
on travel cos
nalysis update
naction” that
vice by 20 pe
al investment
ability of a sig
NCREASES&
re the lifebloo
h congestion r
h a 20 percen
gnificantly and
a and the Co
ce cuts: 36
g Budget “Plan B” 07 dollars. cts of the fare increomy.
RATING
job losses in
ld increase th
omic impacts
cognize the c
life in many o
onomic growt
sit enhances t
avel costs, sa
ructures of re
valuable reso
obile travel;
singly valued
ments; and
cation choices
ptions for hou
f the southea
sts and the im
es and adapts
t specifically e
ercent. The cu
t which will o
gnificant part
&SERVICECU
od of the eco
reduction. Th
nt service cut,
d had large a
mmonwealth
Alternative, Econo
ease and service c
many
he
) or allow
rucial role
of the
h, job
the
fety, and
egional
ources
d in the
s for its
useholds.
astern
mplications
s a joint
examined
urrent
ver time
of the
UTS
nomy.
he 2007
, found
dverse
h.35
omy League of
cuts, and it
EC
5Th
ab
th
se
W
fe
op
of
se
G
tr
in
5Es
ge
Ba
tr
Sp
37
66lowthas
CONOMY LEAGUE OF
‐ Transit
new tr
‐ Driver
‐ The Cit
lose 14
‐ Proper
suburb
‐ State I
‐ Suburb
encou
deprec
5.3ALOOKAhe inadequac
bility of trans
he region. In t
ervices.
While no actua
easible that th
perating a co
f the system w
ervice that wo
iven the mag
ransit to sout
n which public
.3‐1TRANSPOstimates of th
enerated by r
ased on this s
ransportation
pecifically, th
‐ Net co
total $
the co
additio
million
There were 247 m6 percent of those wer than 66 perceere are 2.25 peopsumption, and cos
F GREATER PHILADEL
t users would
ravel costs for
s would incur
ty of Philadel
4,500 jobs an
rty values in t
ban property
ncome taxes
ban counties
rage sprawlin
ciated home v
AHEAD:WHcy of capital fu
it to serve th
the extreme,
al proposal to
he present‐da
mprehensive
will lead to th
ould fundame
gnitude of risk
heastern Pen
c transportati
ORTATIONIMhe economic
removing SEP
simulation ex
n and time co
e elimination
osts for peopl
$581 million.
st of shifting
onal costs of $
n.37 Note that
million linked trips transit trips are m
ent of transit trips,ple per car trip amosts would be subst
LPHIA & ECONSULT S
d shoulder an
r those who o
r extra costs o
phia would lo
d $868.5 mill
the city would
would depre
would fall by
would be les
ng growth pat
values), woul
HATIFTHERunds to main
e needs of th
failure to rein
o completely
ay mobility pa
e network of p
he erosion of
entally chang
k associated w
nnsylvania wa
ion is no long
PACTSconsequence
PTA from DVR
xercise, it is es
osts for driver
n of SEPTA wo
le who curren
This estimate
to other mea
$336 million
t the increase
on SEPTA in 2011
made by car if SEPT, however, becausong this group whtantially higher if s
SOLUTIONS, INC. – AP
additional $1
opt for autom
of $38.9 millio
ose 43,800 jo
lion in net ea
d depreciate
ciate by 6.6 p
y $27 million a
s able to prov
tterns. Such s
ld stretch sub
REWASNOtain the SEPT
e region and
nvest in trans
disinvest in tr
atterns of sou
public transpo
SEPTA’s syste
e the region’
with status qu
s performed
ger available i
es of a lack of
RPC’s regiona
stimated that
rs and forme
ould have the
ntly use trans
e is derived fr
ans of travel.
plus an addit
e in demand fo
. If SEPTA were elTA is eliminated. Te analysis assumeich is 50 percent hsignificant ridesha
PRIL 2013
49 | P a g e
182 million an
mobiles;
on annually in
bs and $1.67
rnings;
by 6.5 percen
percent (net v
and City wage
vide core serv
sprawl, along
burban munic
SEPTA?TA system pos
Commonwea
sit infrastruct
ransit infrastr
utheastern Pe
ortation servi
em over time
s mobility if n
uo funding lev
to examine t
n the region.
public transp
l travel simula
t a region wit
r transit user
following ou
sit but are fo
rom the differ
Former trans
ional $182 m
or parking sp
iminated, this travThe total number oes substantial rideshigher than the typaring does not occu
nnually in ext
n additional t
billion in net
nt (net value
value reductio
e tax revenue
vices as highe
g with fallen p
cipalities fisca
ses a credible
alth, and to t
ture could un
ructure has b
ennsylvania c
ices, the reali
e, gradually re
not addressed
vels, an exerc
he specific ec
portation in s
ation, which
hout SEPTA w
rs totaling $2
utcomes:
rced to shift
rence betwee
sit users who
million in parki
aces would le
vel must be accomof car trips neededsharing amongst fpical 1.5 passengeur.
tra wait times
travel time an
t earnings wh
reduction: $2
on: $4.45 bill
es would fall
er transit fare
property tax r
ally and logist
e threat to tra
he economic
dermine the
een suggeste
ould continu
ity is that stat
esulting in the
d in a meanin
cise to illustra
conomic cons
outheastern
models regio
would experie
2.08 billion an
to other mea
en cost of cur
o choose to dr
ing costs for a
ead to a muc
mmodated by othed to replace the trformer transit rideers per car. This is
s, additional f
nd higher par
hile the region
2.89 billion) a
ion);
by $60 millio
es and lower a
revenue (tied
ically.
ansit services
competitiven
viability of al
ed, nor is it ev
e without SEP
tus quo unde
e sort of elim
ngful way.
ate the impor
sequences of
Pennsylvania
onal mobility p
ence an incre
nnually.
ans of travel w
rrently using S
rive would inc
a total of $51
h higher aver
er modes; analysisansit trips may beers. This analysis asa very conservativ
fares and
king costs;
n would
nd
n; and
availability
d to
, the
ness of
l transit
ven
PTA
erfunding
ination of
rtance of
a scenario
a were
patterns.
ease of
would
SEPTA and
cur
18
rage daily
s shows that e substantially ssumes that ve
EC
5Th
an
ec
fr
re
th
of
To
im
in
im
Th
38
m39
totra40
2041
SE
CONOMY LEAGUE OF
parkin
comm
for priv
that ot
‐ Region
value o
parkin
‐ Additi
increa
.3‐2EMPLOYhe increases
nd undesirab
conomic com
rom inefficien
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o determine t
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he implicatio
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ating SEPTA w
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destroy well
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sus Congestion: Wccident with a fatariate, if conservatix. It is conservatively wasted resourction first develope has updated and t 80 percent of the
LPHIA & ECONSULT S
ated at $25 fo
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LESTATEIMPtion costs ass
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, on the other
SEPTA’s elim
wage tax.
of higher tran
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mination of S
would result
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ll lose more t
impacts repr
would reduce
model, an in
over half of t
ommercial pr
more isolated
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SOLUTIONS, INC. – AP
or the Centra
t services wil
million. These
n spent on SE
dditional cost
ease in gener
n an additiona
nts resulting
ACTSsociated with
nd Commonw
would, excep
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EPTA for the
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resent an agg
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PRIL 2013
50 | P a g e
l Business Dis
l face higher
e added costs
PTA fares.
t of $1.37 bill
ral congestion
al $134 millio
in fatalities a
the complet
wealth econo
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rate revenue
rspective, the
osts on the re
ed with the e
ed recently u
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jobs. Based
regate loss of
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ers alike. The
es more diffic
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strict. Former
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s are partially
lion. These c
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on associated
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omy. Increase
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egional econo
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updated prop
basis for the e
onal econom
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in the City by
gnitude assoc
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bridge Systematic
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percent affect the
r transit users
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n of transit wo
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ieve producti
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estimates.40
my are extrem
bs in the City
at roughly tw
ervatively, the
ncomes for th
in city earnin
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ciated with th
ecting the we
lue is harmed
around and a
cs, November 2011
whether city or sch as police, fire, a he first Philadelph
suburbs. This bas
s who choose
ng to addition
vings of $439
$1.19 billion i
he impact of
nts. As drivin
ould result in
tion costs affe
etween highe
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ve objectives
than doubling
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ometric mode
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y.41 Since the c
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he city and re
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he elimination
ealth of indivi
d because City
access jobs an
1. AAA estimates
uburban residentsand sanitation, inc
hia Tax Reform Com
sically reflects the
e to
nal costs
million
in the
higher
ng
dramatic
ects
er costs
y lost—
s. To put
g the City
ed the
re an
els of the
city is far
he job loss
gion,
billion in
Based on
n of SEPTA
dual
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nd other
s a cost of $6
s are subject creases in
mmission in
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he City of Phi
his density is
igh density ur
ransportation
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ty, and each
or housing, an
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owering the d
This based on reseat city employmenfect on suburban conomics, Vol 27 n
F GREATER PHILADEL
ating SEPTA w
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line of city em
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a significant e
atically and ne
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MPACTSPTA would ha
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monwealth in
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upt the City.
ban property
ate is based o
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IMPACTSnt or eliminat
dents regardl
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costs.
ladelphia, an
enabled by p
rban environm
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he city into th
with the acco
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nd many mor
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ensity of the
earch examining thnt growth positivehouse values. Seeno. 4 pp621‐48 (1
LPHIA & ECONSULT S
would reduce
at suburban p
mployment.42
n property va
employment
egatively affe
house values
struction in th
ave correspon
ne in earnings
ncome and sa
line by $207
and property
tax would de
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ess of wheth
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e Philadelphia
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SOLUTIONS, INC. – AP
e suburban p
property value2 While the C
alue that is de
center. With
cts suburban
s would declin
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ndingly sever
s and propert
ales tax reven
million and sa
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cline by $49 m
perty tax colle
useholds or b
ons on existin
ty value loss a
ated with new
would lead t
er they are SE
nd changes in
ghway netwo
Center City, is
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ss of open spa
of land, there
reets, shoppi
City, more of t
mishing its att
etween suburban pan house values (a"The Suburban Ho45.
PRIL 2013
51 | P a g e
property valu
es relatively n
City’s impact o
ependent on
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property val
ne by over $5
urbs as emplo
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ty value woul
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businesses. Re
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and a 1.5 per
w developme
to significant
EPTA riders. T
n quality of lif
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ply put, it is n
portation. A s
ess desirable
This relocatio
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ng centers, a
the land wou
tractiveness.
property values annd decline negativousing Market: Eff
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near the City
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people choo
decline in city
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50,000. Note,
oyment shifts
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ecline by $40
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$1.2 billion. W
property tax c
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evenue declin
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rcent effective
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indirect effec
These impact
fe, and would
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ot possible to
significant de
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xample, 100,0
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nd other sup
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nd city and suburbvely affects value)fects of City and Su
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, however, th
from the City
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affect wage a
09 million an
ecline by $202
Wage tax reve
collections wo
nce the City w
nes of this ma
would decline
e property ta
n communitie
cts on the reg
ts include land
d also increase
pled with an
the rest of th
o create or m
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000 families r
nearly 80 squ
pporting uses.
e devoted to
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cent). Publish
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cations becau
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communities
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enue would d
ould decline b
would no long
agnitude wou
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ax rate, offset
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gion, which w
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e the need fo
increase in ro
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maintain a high
mination of p
ding to a sign
al of land dev
relocated out
uare miles) co
. To the exte
parking and s
growth. This reseaemployment grow
ment Growth," Rea
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use the
es
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uburbs.
and the
axes, sales
me tax
decline by
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h quality,
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44
CONOMY LEAGUE OF
ense develop
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ravel costs an
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o absorb thos
ompensate fo
5.4SEPTA’SEPTA faces a
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007.43 On the
f good repair
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ommonwealt
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F GREATER PHILADEL
pment also fa
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the most har
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SIMPENDINdifferent kind
creases, the i
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The shortag
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ses in the fut
ONTRANSITStem is a majo
nts of asset va
ed to increase in FYmore details.
LPHIA & ECONSULT S
cilitates the i
markets. Thes
duals and firm
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GCAPITALCd of financial
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, SEPTA has in
ospect that u
ge of capital fu
tended perio
osts from poo
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SOLUTIONS, INC. – AP
nteraction an
se benefits giv
ms can be rela
conomies are
imination of
eel the econom
ransit users d
e, increase co
other employ
s would be fo
ould pay.
CRISIScrisis in 2013
perating adju
nsufficient ca
ltimately will
unds poses th
d of time. It
orly maintaine
le of transit s
returning the
ure asset who
are, for example, i
PRIL 2013
52 | P a g e
nd interchang
ve rise to wha
atively more p
e those that a
public transit
mic ripple eff
divert to drivi
osts at local re
yees would e
orced to reduc
than it did in
stments are n
pital funds re
have even m
hreats to sout
is expected th
ed equipmen
service; and
system to a s
ose replacem
is rising 12.5%, fro
ge of ideas, sh
at are called
productive in
are currently i
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fects. Travel t
ng on the reg
estaurants by
either absorb
ce the quality
n 2007. While
not near the
equired to ma
more severe c
theastern Pe
hat the capita
t;
state of good
ent cost is ro
om $2.00 to $2.25
haring of prod
“agglomerati
dense areas.
in the City. Th
times would i
gional road ne
y making it m
those costs,
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magnitude of
aintain the cu
consequences
nnsylvania’s e
al shortage w
d repair.
ughly $21 bil
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ductive and in
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etwork. The i
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o
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17 displays
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46
47
CONOMY LEAGUE OF
he need to m
apid Transit S
otaled $500 m
many passeng
Moreover, tran
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ound that the
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illion.47 SEPTA
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he failure to m
ashion can lea
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unning the tra
American Public TSEPTA (2013). SEPTA (2013).
F GREATER PHILADEL
FIGURE
make significan
System (BART
million per yea
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nsit is not uni
AECOM for th
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mong asset cl
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ains could res
Transportation Ass
LPHIA & ECONSULT S
E 17: REPLACEM
nt infrastruct
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ar. It should
PTA system.45
ique in requir
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per year was
ted for that p
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7, SEPTA own
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PTA’s 1,390 b
ars.46 Rail cars
verliner V cars
0 years old an
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be replaced.
d capital impr
igher future c
the station af
sult in the com
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ST
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ENT VALUE OF S
Sourc
ure investme
investments
be noted tha5
ring significan
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needed to ke
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ntain highway
s a variety of
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buses, whose
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nd need to be
rail and 159
ovements on
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mplete loss o
blic Transportatio
TATION AREAS$2651.4
RACK708.0
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PS, YARDS & QUIPMENT$1248.6
PRIL 2013
53 | P a g e
SEPTA’S ASSETS
ce: SEPTA (2013)
ents is not uni
needed to ac
at BART is a n
nt capital rein
t examined a
eep the Metro
report estima
ys in a SGR wo
f types of asse
differ. For ex
replacement
d to last long
han $300 mil
e replaced at a
trolley vehicl
n bridges, tun
ample, delay
fails. Failure
f train service
n Fact Book, p. 8
BRIDGES$3135.4
S
S ($ BILLIONS, CU
)
ique to SEPTA
chieve and m
newer system
nvestment in
ll forms of tra
opolitan High
ated that the
ould range fro
ets. Different
ample, buses
cost is nearly
er, as long as
llion. SEPTA h
an estimated
es, a large nu
nels, track, p
in replacing t
to make imp
e when the ag
COMMUNIC& SIGNA$1657
VEHICLE$3906.6
TUNNELS$3721.4
URRENT DOLLAR
A. A 2012 stud
aintain a stat
m that carries
infrastructure
ansportation
hway System
e net present
om $18.7 to $
t asset types d
s are typically
y $1 billion, m
s 40 years. SE
has another 2
d cost of appr
umber of whi
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the roof on a
rovements o
ging equipme
CATION ALS.4
ES6
S
RS)
dy of the Bay
te of good rep
roughly one t
e. A 2013 rep
in Massachu
in a SGR, but
value of (at 7
$30.0 billion i
depreciate at
y designed to
must be repla
PTA’s most re
231 regional r
oximately $1
ch are approa
ations in a tim
station may
n the power s
ent stops wor
y Area
pair (SGR)
third as
port
setts
only $400
7 percent)
if
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last 12
ced
ecent
ail cars
.3
aching
mely
result in
systems
rking.
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Fi
CONOMY LEAGUE OF
elayed capita
urrently facin
f $33.8 millio
ndertaken.
ased on the c
million per yea
illion in 2032
eplacement o
work off the en
pproximately
ransit Admini
n the long‐run
perations sign
eyond its use
Moreover, as i
osts increase
nformation to
uses by vinta
igure 19 show
PHYSICAL CONDITION RATING
F GREATER PHILADEL
al improveme
g this particu
n in repairs, b
continuation o
ar), the backlo
. The pace of
of its assets at
ntire backlog
y $452 million
istration’s pro
FIGURE
n, underfundi
nificantly. At
eful life by 203
nfrastructure
as the capita
o bear on the
ge. It is thus p
ws maintenan
3.2
3.4
3.6
3.8
4.0
FY2010
FY2011
LPHIA & ECONSULT S
ents on a brid
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but is estimat
of the curren
og of capital n
increase in th
t current SGR
of SGR need
n per year abo
ojections for i
18: U.S. TRANS
ng transit inf
current fund
32, over time
e depreciates
l stock depre
issue. SEPTA,
possible to tr
nce costs per
FY2012
FY2013
FY2014
FY2015
SOLUTIONS, INC. – AP
ge may requi
now on the N
ted to cost $2
t level of cap
needs, which
he backlog ris
‐programmed
in 20 years, S
ove current le
increases in S
IT INDUSTRY PR
Source: National
rastructure in
ing levels, SEP
leading to an
, the cost of d
ciates is not u
, for example
ack the incre
mile of SEPTA
FY2015
FY2016
FY2017
FY2018
FIS
COND
OVER
PRIL 2013
54 | P a g e
re complete
Norristown Hi
260 million to
ital funding p
currently tot
ses because S
d funding lev
SEPTA would
evels. SEPTA’s
SGR backlogs
ROJECTED STATE
l SGR Assessment,
nvestment wi
PTA estimate
n elimination
delivering ser
universally un
keeps detaile
ase in mainte
A’s hybrid bus
FY2019
FY2020
FY2021
FY2022
SCAL YEAR
ITION FORCAS
AGE FORECAST
bridge replac
igh Speed Lin
o replace if th
programmed
tals $4.7 billio
SEPTA fundam
els: approxim
need to inve
s projections
nationally, as
E OF GOOD REPA
2010, FTA.
ill force SEPTA
es that 40 per
of related tra
rvice increase
nderstood, bu
ed informatio
enance costs
s fleet by age
FY2022
FY2023
FY2024
FY2025
ST
T (%)
cement in the
ne (NHSL) whe
e capital imp
for SGR (appr
on, will contin
mentally cann
mately $200 m
est $652 millio
are consisten
s shown in Fig
AIR (FY2008‐20
A to reduce t
rcent of the sy
ansit service.
es. The extent
ut it is possib
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that result fro
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FY2026
FY2027
FY2028
FY2029
e future. SEPT
ere a bridge i
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nue to grow t
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million per yea
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he scale of its
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FY2029
PER
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CONOMY LEAGUE OF
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F GREATER PHILADEL
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‐
0.20
0.40
0.60
0.80
1.00
1.20
1.40
MAINTENANCE COST PER
MILE ($)
LPHIA & ECONSULT S
FIGURE 19:
s increase sha
tenance costs
tive, they con
mes increasin
FSTATUSQU
OSTSomic impacts
the extent to
ervice pattern
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transit servic
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h $8.5 billion,
40 percent of
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ental impacts
ust account fo
40 percent se
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0
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0
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SOLUTIONS, INC. – AP
SEPTA’S MAINT
Source: S
arply with age
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ause they are
ad uses scena
e and, ultima
on SEPTA’s es
or roughly 4
f the system w
cts for a 40 pe
a from the 20
of increased
or the fact tha
ervice cut wil
ecause transit
stion increase
9
PRIL 2013
55 | P a g e
TENANCE COST P
SEPTA & ESI (20
e, even amon
ybrid bus are
mon sense no
e to operate
FUNDINGOF
with underfun
apital shortfa
he impact on
not directly c
arios to mode
ately, regiona
stimate of SG
0 percent of
would ultima
ercent service
007 study, wh
service reduc
at small cuts h
l have more t
t service beco
es rapidly as r
4AGE OF B
PER MILE VS. BU
013)
ng buses that
one third of t
otion that all
and maintain
SEPTA’SC
nding SEPTA’s
all will result i
ridership and
connected w
el the long‐te
l travel costs.
GR at current
SEPTA’s $21
tely be elimin
e reduction sc
hich featured
ction levels to
have proport
than double t
omes increasi
roads reach c
3 2US
US AGE
are not beyo
the cost of a
infrastructur
n. Ultimately,
CAPITALNEE
s capital need
in reduced tra
d congestion.
ith any specif
rm impacts o
.
levels of prog
billion asset b
nated if there
cenario was n
a 20 percent
o model the p
tionately sma
the impact on
ngly unattrac
capacity as a r
2 1
ond their desi
10 year old b
e wears out o
, it becomes t
EDS
ds would requ
ansit services
. Because SEP
fic changes in
of SEPTA’s ove
grammed fun
base. Over th
e were no add
not available
service redu
potential imp
ller negative
n travel costs
ctive as servic
result of tran
gn life.
bus. While
over time,
too costly
uire a
s, then use
PTA’s
n service
erall state
nding. In
e very
ditional
for this
ction, and
act of a 40
impacts
than a 20
ce
sit riders
EC
sh
re
re
Ba
tr
re
w
to
48
adpr
CONOMY LEAGUE OF
hifting to auto
esulting from
egional travel
FIGU
ased on the c
ravel costs by
esponse to in
will bear. Thes
otal $4.4 billio
The regional travedditional travel on rior additional car.
F GREATER PHILADEL
omobile trave
increasingly
costs and SE
URE 20: ANNUAL
curve shown i
y $488 million
adequate cap
se are display
on.
el costs increase earoads is exponent
0
500
1000
1500
2000
2500
TRAVEL COSTS ($ M
ILLIONS)
LPHIA & ECONSULT S
el. Mathemat
severe cuts to
EPTA service e
L INCREASE IN R
in Figure 20, a
. Assuming t
pital funding,
yed in Figure
ach year as servicetial in nature. In o
0
0
0
0
0
0
0 5
10
SOLUTIONS, INC. – AP
tically it is pos
o SEPTA servi
elimination.
REGIONAL TRAV
Sou
a 40 percent
that SEPTA m
it is possible
21. The cumu
e is reduced. The other words, as roa
15
20
25
30
35
PERCENT O
PRIL 2013
56 | P a g e
ssible to fit a
ice.48 Figure 2
VEL COSTS FROM
urce: ESI (2013)
elimination o
oves graduall
to show the
ulative travel
cost increases becads become more
35
40
45
50
55
OF SEPTA SERV
curve that re
20 displays th
M INCREMENTAL
of SEPTA serv
ly to the 40 p
increasing an
cost increase
come larger each e crowded, each ad
55
60
65
70
75
VICE ELIMINAT
eflects the inc
he estimated
L SEPTA SERVICE
vice would inc
percent servic
nnual travel c
e for all years
year because congdditional car creat
75
80
85
90
95
ION
creasing trave
relationship b
E ELIMINATION
crease total re
ce reduction b
osts that the
through 203
gestion associatedtes more time loss
100
el costs
between
egional
by 2032 in
region
2 would
d with s than the
EC
5Th
id
co
U
$1
Pe
va
Th
ec
gr
pu
5In
Th
se
CONOMY LEAGUE OF
.3‐2ECONOMhese increase
dentified for t
omponents o
nder this sce
14 billion (14
ennsylvania w
alue, as some
he Commonw
conomically p
rowth would
ublic transpo
.3‐3FISCALCncreases in tra
he same cate
ervice elimina
F GREATER PHILADEL
FIGURE
MICCOSTSes in travel co
the 100 perce
f impact for t
TABLE 34: LO
CITY
REGIO
Sourc
nario, the Cit
percent) of it
would lose clo
e City busines
wealth would
productive re
likely occur o
rtation would
COSTSavel costs and
egories of fisca
ation scenario
0
100
200
300
400
500
600
TRAVEL COSTS ($ M
ILLIONS)
LPHIA & ECONSULT S
21: PROJECTED
osts can be us
ent service cu
the 40 percen
ONG‐TERM ECO
AREA OF ANAL
OF PHILADELPH
ONAL/COMMO
ce: ESI (2013)
y would lose
ts property va
ose to 25,000
ses and resid
lose nearly $
gion. Loss of
on the urban f
d fuel a new r
d associated e
al impacts ide
o. Results are
FY2013
FY2014
FY2015
FY2016
SOLUTIONS, INC. – AP
ANNUAL INCRE
Sou
sed to calcula
t (SEPTA elim
nt service elim
ONOMIC LOSSES
LYSIS
HIA JO
EA
PR
NWEALTH JO
EA
PR
close to 60,0
alue resulting
0 jobs, $96 mi
dents relocate
$100 million in
household w
fringe, at the
round of regio
economic imp
entified for th
shown in Tab
FY2016
FY2017
FY2018
FY2019
PRIL 2013
57 | P a g e
EASE IN REGION
urce: ESI (2013)
te the same c
mination). Tab
mination.
FROM 40 PERC
IMPACT
OB LOSS
ARNINGS LOSS
ROPERTY VALUE
OB LOSS
ARNINGS LOSS
ROPERTY VALUE
000 jobs, $289
g from a mass
llion in tax re
e to the subur
n income and
wealth from pr
expense of t
onal decentra
pacts have im
he no‐SEPTA s
ble 35. The C
FY2020
FY2021
FY2022
FY2023
FISCAL YEA
AL TRAVEL COS
categories of
ble 34 display
CENT SERVICE EL
40SERVIC
$
E LOSS $(1
$
E LOSS $
9 million in an
s migration fr
evenue, and m
rbs, but many
d sales tax rev
roperty value
the City and in
alization.
mportant fisca
scenario were
ity’s losses of
FY2024
FY2025
FY2026
FY2027
AR
TS THROUGH 20
economic im
s the magnitu
LIMINATION SCE
0 PERCENT CE ELIMINATION
(59,458)
$(2,355,277,338)
14,295,992,490)
(24,772)
$(1,631,078,911)
$(8,443,067,700)
nnual tax reve
rom the City.
more than $8
y leave the re
venues from a
e declines wo
nner‐ring sub
al implication
e modeled fo
f an estimate
FY2028
FY2029
FY2030
FY2031
032
mpacts that w
ude of the va
ENARIO
N
)
)
)
)
)
)
enues, and m
Southeastern
billion in pro
egion entirely
a gridlocked a
uld be pervas
burbs, as the l
s for municip
or the 40 perc
d $289 millio
FY2032
ere
rious
more than
n
operty
y.
and less
sive. Some
lack of
palities.
cent
on in tax
EC
re
in
$9
In
ne
re
of
de
as
de
qu
CONOMY LEAGUE OF
evenues woul
ncreases. Sub
99 million, wo
n suburban co
eeds. Inner‐ri
evenue losses
f this propert
ecentralizes i
ssociated wit
ecentralizatio
uantified in th
F GREATER PHILADEL
ld pose seriou
urban proper
ould also req
TABLE 35:
C
S
C
S
ommunities, i
ing suburbs t
s from decline
ty tax revenue
n response to
h the cost of
on of the regi
his report.
LPHIA & ECONSULT S
us budget pro
rty tax losses,
uire a fiscal re
LONG‐TERM FIS
AREA OF ANA
CITY OF PHILAD
SUBURBAN
COMMONWEAL
Source: ESI (201
mpacts woul
hat are histor
es in property
e decline may
o the reductio
building new
on and the en
SOLUTIONS, INC. – AP
oblems that w
, estimated at
emedy.
SCAL IMPACTS F
ALYSIS
DELPHIA CITY W
SALES
PROP
TOTA
PROP
LTH INCO
SALES
TOTA
3)
d vary based
rically more t
y value (assum
y be offset by
on in transit s
w infrastructur
nvironmental
PRIL 2013
58 | P a g e
would require
t $96 million,
FROM 40 PERCEN
IMPACT
WAGE TAX LOSS
S TAX LOSS
PERTY TAX LOSS
AL LOSS
PERTY TAX LOSS
ME TAX LOSS
S TAX LOSS
AL LOSS
on transit or
ransit depend
ming that pro
y new develop
service. The fi
re, schools, a
l impacts asso
e significant c
, and Commo
NT SERVICE ELIM
40 PERSERVICE ELI
S $(8
$(1
S $(18
$(28
S $(9
$(5
$(4
$(9
rientation and
dent would li
operties are re
pment in exu
iscal impacts
nd other pub
ociated with t
cost‐cutting o
onwealth tax r
MINATION SCEN
RCENT MINATION
88,558,428)
11,776,387)
88,707,101)
89,041,915)
96,250,972)
50,074,123)
48,932,367)
99,006,490)
d anticipated
ikely see sign
eassessed to
rban commu
for these exu
blic services to
the loss of op
r destructive
revenues, est
NARIO
future infrast
ificant prope
market value
nities as the r
urban commu
o support furt
pen space, are
tax
timated at
tructure
rty tax
e). Some
region
unities
ther
e not
EC
A
A
CONOMY LEAGUE OF
APPENDIC
APPENDIX
R3 MEDIA
BSS GIRAR
CROYDON
DARBY TRA
MALVERN
R5 SIGNAG
CATENARY
AIRPORT L
ROOF REPL
NORTH WA
GWYNEDD
FOX CHASE
BRIDGE RE
BRIDGE 12
TULPEHOC
CHW STAT
GERMANTO
MSHL PAIN
MSHL CWR
MSHL ‐ GRA
MHSL RT. 1
RT. 101 WA
SECTIONAL
NHSL RT. 1
OVERHAUL
FERN ROCK
69TH ST. T
CBTC UPGR
40 HYBRID
PHILMONT
LANGHORN
STATION B
ELWYN PA
TOTAL PRO
Source: Fed
F GREATER PHILADEL
CES
A:SEPTA
LINE ROADBED
D & SPRING GA
STATION REHAB
ANSIT CENTER R
STATION PARKI
GE ‐ 17 LOCATIO
Y POLES ‐ FRAZER
INE ROW FENCI
LACEMENT (3: LA
ALES STATION R
D CUT
E STATION BUILD
HABILITATION P
.81
KEN STATION &
ION ‐ RETAININ
OWN/WISTER &
NTING ‐ OVERHE
R BRUSH CUTTIN
ADE CROSSINGS
101/102 ‐ POWE
ARNING DEVICE
LIZATION TO RT
100 POWER CON
L NORRISTOWN
K YARD
ERMINAL RESTR
RADE
BUSES
T ‐ REHAB STATI
NE ‐ STATION BU
BUILDINGS (3: M
RKING
OJECT COSTS
deral Transit Adm
LPHIA & ECONSULT S
PROJECTSF
STABILIZATION
RDEN STATIONS
BILITATION
RENOVATION &
ING & RELATED
NS
R YARD
NG
ANSDALE SUBST
RENOVATION
DING
PROGRAM (4: 1
& CH WEST STAT
G WALLS
& CH EAST STAT
EAD STRUCTURE
NG
S
ER CONTROL & P
E RECONFIGURA
S.101/102
NTROL & PASS. I
SUBSTATION
ROOMS
ON BUILDING
UILDING
MORTON STATIO
ministration (201
SOLUTIONS, INC. – AP
FUNDEDBYAPROJECT T
(2: RETAINING
S REHABILITATIO
SITE EXPANSION
IMPROVEMENT
TATION, WARM
3.04; 18.87; 8.3
TION AMENITIES
ION AMENITIES
ES & CATENARY
PASS. INFO SYST
ATION
NFO SYSTEM (F
ON; FOLCROFT ST
13)
PRIL 2013
59 | P a g e
ARRATITLE
WALLS/SLOPE F
ON
N
TS
MINSTER STATIO
8; 20.25)
S
S
POLES
TEM "FIBER"
IBER OPTIC)
TATION; CLIFTO
FAILURE & CATE
N, GLENSIDE ST
ON‐ALDAN STATI
ENARY STRUCTU
TATION)
ION)
TOTAL
URES) $10,48
$30,30
$8,05
$2,17
$10,96
$2,46
$3,78
$2,39
$74
$1,06
$5,71
$1,76
$6,90
$15
$3,36
$72
$3,45
$59
$16,92
$10,58
$3,75
$3,02
$3,91
$1,77
$6,09
$18,50
$61
$4,45
$20,54
$49
$1,80
$1,90
$1,37
$190,89
COST
83,393
05,809
57,387
73,742
61,568
62,235
87,938
97,573
47,716
68,265
14,504
61,962
05,904
53,056
61,097
23,766
52,134
95,053
22,263
82,988
53,736
23,836
19,447
72,688
93,751
05,431
17,875
50,165
48,675
98,492
03,199
07,248
78,321
91,217
EC
A
CAP
CAPSTR
CAPFAC
CAPPRO
CAPFAC
COM
ENGADM
ENGBRI
ENGCOM
ENGPOW
ENGTRA
ELE
INF
NEW
NEW
REA
REV
SAF
SER
STR
SUP
TRA
VEHMA
Sou
CONOMY LEAGUE OF
APPENDIXDEPARTME
PITAL BUDGETS
PITAL CONSTRUCRUCTURES
PITAL CONSTRUCCILITIES
PITAL CONSTRUCOJECTS
PITAL CONSTRUCCILITIES
MMUNICATIONS
GINEERING & MAMIN/FINANCE
GINEERING & MADGES/ BUILDING
GINEERING & MAMMUNICATIONS
GINEERING & MAWER
GINEERING & MAACK
CTRICAL FACILIT
ORMATION TECH
W PAYMENT TEC
W VEHICLES
AL ESTATE
VENUE & MARKE
FETY AND RISK M
RVICE PLANNING
RATEGIC PLANNIN
PPLY CHAIN MAN
ANSIT POLICE
HICLE ENGINEERIAINTENANCE
urce: SEPTA (2013
F GREATER PHILADEL
B:SEPTAENT NAME
CTION‐ BLUE LINE
CTION ‐ RAIL
CTION ‐ SPECIAL
CTION ‐ TRANSIT
S
AINTENANCE ‐
AINTENANCE ‐ GS
AINTENANCE – S & SIGNALS
AINTENANCE –
AINTENANCE –
IES
HNOLGOY
CHNOLOGIES
ET DEVELOPMENT
MANAGEMENT
NG AND ANALYS
NAGEMENT
NG &
3), ESI (2013)
LPHIA & ECONSULT S
CAPITALBU
OTHER SER
E CONSTRUCTECHNICALNON‐COMM
CONSTRUCTECHNICALNON‐COMM
CONSTRUCTECHNICALNON‐COMM
T CONSTRUCTECHNICALNON‐COMM
CONSTRUCTECHNICALNON‐COMM
CONSTRUCTECHNICALNON‐COMM
CONSTRUCTECHNICALNON‐COMM
CONSTRUCTECHNICALNON‐COMM
CONSTRUCTECHNICALNON‐COMM
CONSTRUCTECHNICALNON‐COMM
CONSTRUCTECHNICALNON‐COMM
PUBLISHINGNON‐COMM
CONSTRUCAND SCIENCOMMONW
MOTOR VEMANUFACTTRANSPOR(18%), NON
REAL ESTAT
T CONSTRUC
WASTE MA
PROFESSIOSERVICES (1
IS PROFESSIOSERVICES (1
WHOLESAL
WHOLESAL(20%)
MOTOR VEMANUFACT(20%)
SOLUTIONS, INC. – AP
UDGETDEPACOMMONWEA
RVICES (100%)
CTION (78%), PROL, AND SCIENTIFICMONWEALTH (14
CTION (78%), PROL, AND SCIENTIFICMONWEALTH (14
CTION (78%), PROL, AND SCIENTIFICMONWEALTH (14
CTION (78%), PROL, AND SCIENTIFICMONWEALTH (14
CTION (78%), PROL, AND SCIENTIFICMONWEALTH (14
CTION (78%), PROL, AND SCIENTIFICMONWEALTH (14
CTION (78%), PROL, AND SCIENTIFICMONWEALTH (14
CTION (78%), PROL, AND SCIENTIFICMONWEALTH (14
CTION (78%), PROL, AND SCIENTIFICMONWEALTH (14
CTION (78%), PROL, AND SCIENTIFICMONWEALTH (14
CTION (78%), PROL, AND SCIENTIFICMONWEALTH (14
G INDUSTRIES, EXMONWEALTH (90
CTION (4%), PROFTIFIC SERVICES (1WEALTH (82%)
EHICLE, BODY, & PTURING (6.5%), OTATION EQUIPMN‐COMMONWEA
TE (100%)
CTION (100%)
ANAGEMENT & RE
ONAL, TECHNICAL100%)
ONAL, TECHNICAL100%)
LE TRADE (100%)
LE TRADE (80%), N
EHICLE, BODY, & PTURING (80%), N
PRIL 2013
60 | P a g e
ARTMENTALALTH OF PA
OFESSIONAL, C SERVICES (7.5%4.5%)
OFESSIONAL, C SERVICES (7.5%4.5%)
OFESSIONAL, C SERVICES (7.5%4.5%)
OFESSIONAL, C SERVICES (7.5%4.5%)
OFESSIONAL, C SERVICES (7.5%4.5%)
OFESSIONAL, C SERVICES (7.5%4.5%)
OFESSIONAL, C SERVICES (7.5%4.5%)
OFESSIONAL, C SERVICES (7.5%4.5%)
OFESSIONAL, C SERVICES (7.5%4.5%)
OFESSIONAL, C SERVICES (7.5%4.5%)
OFESSIONAL, C SERVICES (7.5%4.5%)
XCEPT INTERNET 0%)
FESSIONAL, TECH14%), NON‐
PARTS OTHER ENT MANUFACT
ALTH (75.5%)
EMEDIATION (10
L, AND SCIENTIFIC
L, AND SCIENTIFIC
NON‐COMMONW
PARTS ON‐COMMONW
LEXPENDITU
OTHE
%), CONSAND S(23%)
%), CONSAND S(23%)
%), CONSAND S(23%)
%), CONSAND S(23%)
%), CONSAND S(23%)
%), CONSAND S(23%)
%), CONSAND S(23%)
%), CONSAND S(23%)
%), CONSAND S(23%)
%), CONSAND S(23%)
%), CONSAND S(23%)
(10%), PUBLINON‐
NICAL, CONSAND S(82%)
URING
MOTO(6.5%MANU
REAL
CONS
00%) WAST
C PROFESERVI
C PROFESERVI
WHOL
WEALTH WHOL
WEALTH MOTO(80%)
URESBYIND5 CO
R SERVICES (100%
STRUCTION (70%)SCIENTIFIC SERVI)
STRUCTION (70%)SCIENTIFIC SERVI)
STRUCTION (70%)SCIENTIFIC SERVI)
STRUCTION (70%)SCIENTIFIC SERVI)
STRUCTION (70%)SCIENTIFIC SERVI)
STRUCTION (70%)SCIENTIFIC SERVI)
STRUCTION (70%)SCIENTIFIC SERVI)
STRUCTION (70%)SCIENTIFIC SERVI)
STRUCTION (70%)SCIENTIFIC SERVI)
STRUCTION (70%)SCIENTIFIC SERVI)
STRUCTION (70%)SCIENTIFIC SERVI)
ISHING INDUSTRIREGIONAL (90%)
STRUCTION (4%), SCIENTIFIC SERVI)
OR VEHICLE, BOD), OTHER TRANSPUFACTURING (13
ESTATE (100%)
STRUCTION (100%
TE MANAGEMENT
ESSIONAL, TECHNCES (100%)
ESSIONAL, TECHNCES (100%)
LESALE TRADE (1
LESALE TRADE (8
OR VEHICLE, BOD), NON‐REGIONAL
DUSTRYGROUNTY REGION
%)
), PROFESSIONALCES (7%), NON‐R
), PROFESSIONALCES (7%), NON‐R
), PROFESSIONALCES (7%), NON‐R
), PROFESSIONALCES (7%), NON‐R
), PROFESSIONALCES (7%), NON‐R
), PROFESSIONALCES (7%), NON‐R
), PROFESSIONALCES (7%), NON‐R
), PROFESSIONALCES (7%), NON‐R
), PROFESSIONALCES (7%), NON‐R
), PROFESSIONALCES (7%), NON‐R
), PROFESSIONALCES (7%), NON‐R
IES, EXCEPT INTE)
PROFESSIONAL, CES (14%), NON‐
DY, & PARTS MANPORTATION EQU3%), NON‐REGION
%)
T & REMEDIATIO
NICAL, AND SCIEN
NICAL, AND SCIEN
00%)
0%), NON‐REGIO
DY, & PARTS MANL (20%)
OUPING
L, TECHNICAL, REGIONAL
L, TECHNICAL, REGIONAL
L, TECHNICAL, REGIONAL
L, TECHNICAL, REGIONAL
L, TECHNICAL, REGIONAL
L, TECHNICAL, REGIONAL
L, TECHNICAL, REGIONAL
L, TECHNICAL, REGIONAL
L, TECHNICAL, REGIONAL
L, TECHNICAL, REGIONAL
L, TECHNICAL, REGIONAL
RNET (10%),
TECHNICAL, ‐REGIONAL
NUFACTURING IPMENT NAL (80.5%)
N (100%)
NTIFIC
NTIFIC
ONAL (20%)
NUFACTURING
EC
A
ATh
es
ba
de
re
di
H
to
pr
m
in
w
Th
D
Co
th
in
Pa
w
in
ex
sp
co
ex
re
In
di
ec
ATh
It
ES
in
to
Th
th
49
us
CONOMY LEAGUE OF
APPENDIX
A.1ECONOMIChe methodolo
stimating suc
ased on the a
escribed in te
egion sells $1
irect expendi
owever, the e
o that industr
roduce the $1
meet their incr
ndirect expen
will, in turn, be
hese are refe
irect expendit
ommerce’s Bu
hen produces
nitial direct ex
art of the tota
which the mod
ndustry of the
xpenditure br
pending and le
omponent of
xpenditures a
equired to pro
n short, the in
irect demand
conomic activ
A.2FISCALIMPhe RIMS II mo
does not, how
SI has constru
ncreases in sta
otal economic
he RIMS II mo
he defined reg
In the input‐outpusually referred to a
F GREATER PHILADEL
C:ECONOM
IMPACTMOD
ogy and input
ch expenditur
assumptions (
erms of the to
million of its
tures.
economic imp
ry have also b
1 million in go
reased needs
ditures requi
e spent in par
rred to as ind
tures are fed
ureau of Econ
a calculation
penditure effe
al expenditure
del can separa
input‐output
reakdown of t
eakages from
the total econ
ffecting the v
oduce this out
nput‐output m
d for the good
vity attributab
PACTMODELodel provides e
wever, estima
ucted a model
ate and local t
c impact of a n
odel provides e
gion. The ESI f
ut model, the estimas person‐years of
LPHIA & ECONSULT S
MIC&FISCAL
DELt‐output mod
re impacts, an
(including dat
otal output ge
goods, there
pact on the re
been called up
oods sold. Fu
s as well. The
re workers, a
rt on goods an
duced expend
into a model c
nomic Analysis
of the total ex
ect, as well as
e effect is actu
te from the e
model. Impa
he national in
personal taxe
nomic impact
arious industr
tput.49
model estimat
ds or services
ble to the exp
estimates of t
ate the fiscal i
that takes th
tax collections
new project th
estimates of d
fiscal impact m
mate of increased employment. As
SOLUTIONS, INC. – AP
LIMPACTM
del used in th
nd the results
ta) used to ge
enerated from
e is a direct in
egion does no
pon to increas
urther, suppli
ese are referre
and these wor
nd services p
ditures.
constructed b
s through its R
xpenditure ef
s the ripple (in
ually the incre
xpenditure es
acts of this ind
nput‐output ta
es and savings
attributable t
ries and trans
tes the total e
of various ind
penditures as
the economic
mpact of the
e output from
s that arise fro
hat is often ign
direct, indirec
model combin
employment will such, these estim
PRIL 2013
61 | P a g e
ODELMETH
is economic i
s are typically
enerate the im
m every dolla
fusion of $1 m
ot stop with t
se their prod
ers of these s
ed to as indir
rkers must be
roduced loca
by ESI and are
Regional Input
ffect on the re
ndirect and ind
ease in total w
stimates. Dire
dustry are esti
able and are a
s. The direct, i
to wages and
lates this estim
economic act
dustries. This
ssociated with
impact of a n
increased eco
m the RIMS II m
om the new pr
nored in conv
t, and induced
nes the RIMS I
always be in termates cannot be int
HODOLOGY
mpact analys
y recognized a
mpacts. In ge
r of direct ex
million into th
that initial dir
uction to me
same supplier
ect expenditu
e paid for the
lly, engender
based on dat
t‐Output Mod
egional econo
duced) effects
wages and sala
ect payroll est
imated using
adjusted to ac
indirect, and i
salaries. Final
mate into an
tivity in a regi
s type of app
h various type
new project or
onomic activit
model and ge
roject. Those
ventional econ
d expenditure
I output with
ms of the employmterpreted as speci
sis are consid
as reasonable
eneral, any ec
penditures. I
he region. Th
rect expendit
et the needs
rs must also i
ures. In addit
eir labor. The
ring another r
ta provided by
deling System
my. This tota
s described.
aries (usually r
timates are fe
the personal
ccount for reg
induced earni
lly, the model
estimate of th
ion that can b
roach is used
es of spendin
r program on
ty on state an
enerates detai
revenues are
nomic impact
es, earnings, a
U. S. Census
ment required for aifying permanent j
ered standar
e and plausibl
conomic activ
If an industry
hese are refer
ure. Regiona
of the indust
ncrease prod
tion, these di
se wages and
round of imp
y the US Depa
(RIMS II). Th
al effect includ
referred to as
ed into the “ho
consumption
gional consum
ings represen
l calculates th
he total labor
be attributed
d to estimate
ng in the regio
the regional e
d local govern
led estimates
in fact a part
analyses.
and employm
Bureau Count
a given level of projobs.
d for
e effects
vity can be
y in a given
rred to as
al suppliers
try to
duction to
rect and
d salaries
acts.
artment of
e model
des the
earnings),
ousehold’
mption
t a
e total
(or jobs)
to the
the total
on.
economy.
nments.
s of the
of the
ent within
ty Business
oduction,
EC
Pa
th
ea
ea
Ph
Pe
m
Pe
CONOMY LEAGUE OF
atterns data t
he 2000 Censu
ach county wi
arned income
hiladelphia, th
ennsylvania st
most recent da
ennsylvania D
F GREATER PHILADEL
o produce est
us “Journey to
ithin the regio
e taxes by cou
he model can
tate business
ata on average
Department of
LPHIA & ECONSULT S
timates of the
o Work” data
on, regardless
nty and for th
differentiate
and sales taxe
e sales tax bas
f Revenue.
SOLUTIONS, INC. – AP
e distribution
on commutin
of where the
he state as a w
between resi
es, as well as
se per employ
PRIL 2013
62 | P a g e
of additional
ng flows are ut
ey work. The f
whole resultin
dents and non
business taxe
yee by major i
employment
tilized to estim
fiscal model ca
g from the ne
nresidents an
es in Philadelp
industry, as co
and earnings
mate income e
an then estim
ew project. Fo
nd apply the p
phia, are estim
ontained in pu
by county. In
earned by res
ate the increa
or complex cas
roper wage ta
mated based o
ublications fro
addition,
sidents of
ase in
ses, like
ax rate.
on the
om the
EC
A
CONOMY LEAGUE OF
APPENDIX
MULTIP
EXTENT
ECONOM
FISCAL I
DIRECT
EXAMPL
RENOVA
OPERAT
DIRECT
DIRECT
EXPEND
INDIREC
EXAMPL
EXPEND
INDIREC
INDIREC
INDIREC
TOTAL E
TOTAL E
TOTAL E
F GREATER PHILADEL
D:GLOSSAR
PLIER EFFECT –
THAT DIRECT EX
MIC IMPACTS –
IMPACTS – LOCA
EXPENDITURES
LES: ONE‐TIME
ATED FACILITY,
TING ACTIVITY.
EMPLOYMENT –
EARNINGS – TH
DITURES.
CT EXPENDITUR
LES: VENDORS
DITURES, WORKE
CT EMPLOYMEN
CT EARNINGS –
CT EXPENDITURE
EXPENDITURES –
EMPLOYMENT –
EARNINGS – THE
LPHIA & ECONSULT S
RYOFECON
THE NOTION TH
XPENDITURES LE
TOTAL EXPEND
AL AND/OR STAT
S – INITIAL OUT
UPFRONT CO
ANNUAL EXP
– THE FULL TIM
HE SALARIES AN
RES – INDIREC
INCREASING
ERS SPENDING D
NT – THE FULL TI
– THE SALARIES
ES.
– THE SUM TOTA
– THE SUM TOTA
E SUM TOTAL O
SOLUTIONS, INC. – AP
OMICIMPAC
HAT INITIAL OU
EAD TO INDIREC
ITURES, EMPLOY
TE TAX REVENU
LAYS USUALLY A
NSTRUCTION A
ENDITURES ASS
E EQUIVALENT J
D WAGES EARN
CT AND INDUC
PRODUCTION
DIRECT EARNING
ME EQUIVALENT
S AND WAGES
AL OF DIRECT EX
AL OF DIRECT EM
F DIRECT EARNIN
Sou
PRIL 2013
63 | P a g e
CTANALYSIS
UTLAYS HAVE A
CT AND INDUCED
YMENT, AND EA
ES GENERATED.
ASSOCIATED WI
AND RELATED E
SOCIATED WITH
OBS ASSOCIATE
NED BY EMPLOY
ED OUTLAYS R
TO MEET NEW
GS ON VARIOUS
T JOBS ASSOCIA
EARNED BY EM
XPENDITURES AN
MPLOYMENT AN
NGS AND INDIRE
urce: ESI (2013)
STERMINOL
RIPPLE EFFECT
D EXPENDITURES
ARNINGS GENERA
ITH THE PROJEC
EXPENDITURES
H ONGOING F
ED WITH THE DIR
YEES AND CONTR
RESULTING FRO
W DEMAND A
PURCHASES WIT
ATED WITH THE I
MPLOYEES AND
ND INDIRECT EX
ND INDIRECT EM
ECT EARNINGS.
LOGY
ON A LOCAL E
S.
ATED.
CT OR ACTIVITY
ASSOCIATED W
FACILITY MAINT
RECT EXPENDITU
RACTORS AS PA
OM THE DIREC
ASSOCIATED W
THIN THE LOCAL
INDIRECT EXPEN
CONTRACTORS
XPENDITURES.
PLOYMENT.
CONOMY, TO T
BEING MODELE
WITH A NEW
TENANCE AND/
URES.
ART OF THE DIRE
CT EXPENDITUR
WITH THE DIRE
L ECONOMY.
NDITURES.
AS PART OF T
THE
ED;
OR
/OR
ECT
RES;
ECT
THE