Read/review SEPTA\'s 2018 operating budget, as discussed in class. Now, assume t
ID: 1711568 • Letter: R
Question
Read/review SEPTA's 2018 operating budget, as discussed in class. Now, assume that in 2019, SEPTA will receive half of the subsidy it receives now. That is, half of all federal, state and local monies. Prepare a one page essay (500 words) on how you would balance the budget. What services would you cut and why? How would you reduce costs? Increase ridership and revenue. Answer the question: Do you think SEPTA should be required to break even, that is, only operate services equal to the revenue it receives, and why. -or- Read/review SEPTA's 2017-2019 capital budget as discussed in class. Now, assume that SEPTA will receive half of the capital costs it receives now. That is, half of all federal, state and local monies. Prepare a one page essay (500 words) on how you would prioritize the capital needs. What projects would you cut and why? How would you reduce capital spending? Answer the question: Do you think SEPTA capital improvements should be required to be funded n house, that is, without subsidy, and why? one inch margins all around, typed, times new roman font, single space, 12 point font, left justified. One page, no more, no less.Explanation / Answer
SEPTA is the nation’s sixth-largest public transit agency and the primary public transit provider in the greater Philadelphia region. SEPTA’s multimodal network serves a 2,200 square-mile region with a population exceeding four million. SEPTA’s FY 2018 Capital Budget includes $351.72 million in state funds.Sources of funding for Section 1514 are generated by various sources: proceeds of capital bonds; tire, vehicle lease and vehicle rental fees; traffic violation fines; motor license fund fees; and turnpike transfer funds, which will eventually be replaced with sales and use tax revenues.
First and foremost, $ 241.6 M is allotted for vehicle acqusitions and overhauls.Next,$102.9 M is allotted for financial obligations.Next, $ 99.6 M is allotted for modernization of SEPTA's fare payment system.Then,$ 87.7 M is allocated for stations,loops and parking improvements.$ 56.1 M is allocated for maintenance,transportation,shops,offices and roofs.SEPTA's planned trolley modernization project and potential extensions of the Broad street Line or the Norristown Highe speed Line are not included.Capital expenditures show just one half of SEPTA’s spending equation.
SEPTA spends less on its other transit modes than the national average in 2014, the most recent year surveyed by the American Public Transportation Association. Capital spending can be reduced by restoration of old rail services,rehabilitation of transit and regional rail stations and terminals, bus/trolley loop facilities, transportation centers, bicycle facilities, and parking expansions and improvements. Program elements include the replacement or rehabilitation of station and loop facility components, such as station buildings, ticket offices, waiting rooms, passenger shelters, canopies, platforms, crosswalks and overpasses, escalators and elevators, lighting, signage, and accessible paths.
Southeastern Pennsylvania’s share of state highway, road, and bridge investment for capital was determined by examining Delaware Valley Regional Planning Commission (DVRPC) data on “actual” capital funding provided by PennDOT to District 6. 4 Federal funding is included because the federal government pass-through funds present a substantial share for highway and bridge capital investment. Increase in SEPTA funding would actually translate into improved market performance of the Authority.This would be examined by analysis of customer satisfaction, ridership, and capital expenditures over the last ten years.During the years in which SEPTA had a boost in funds for capital investment, it made significant investments in the basic infrastructure of the system and, importantly, to make meaningful improvements for public transit riders. Despite the inherent difficulty of successfully managing a sudden increase in expenditures, SEPTA’s increased capital investment paid off, as reflected in the level of SEPTA rider satisfaction measured by its annual Customer Satisfaction Surveys of the period of FY2010 to FY2012.SEPTA periodically undertakes a rigorous survey of its riders (and a smaller sample of non-riders) to gauge its performance as perceived by current and potential customers. customer satisfaction is correlated with capital investment, and that when SEPTA had the funds to improve the environment within which passengers travel, customers responded favorably. These investments enabled SEPTA to deliver a service that was more reliable, and reliability is highly valued by SEPTA customers as reflected by its consumer satisfaction survey. Indeed, a customer’s options for commuting to work are an important factor in where they choose to live and what private transportation investments he or she makes. Funding continuity therefore indirectly improves rider satisfaction.
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