Committee Hearing, November 15, 2004

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON TRANSPORTATION AND PUBLIC UTILITIES - - - Room 400, City Hall Philadelphia, Pennsylvania Monday, November 15, 2004, 2:20 p.m. - - - Resolution 040821 - Resolution authorizing the Council Committee on Transportation and Public Utilities to hold hearings on the importance of public transportation to the Philadelphia and the Southeastern Pennsylvania region, to evaluate the need for increased dedicated state funding for public transit, and to review strategies to enhance coordinated and comprehensive transportation policy and planning. PRESENT: COUNCILMAN MICHAEL A. NUTTER, Chair COUNCILMAN DARRELL L. CLARKE COUNCILMAN JACK KELLY COUNCILWOMAN DONNA REED-MILLER - - - V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2 040821 - Transportation/Pub.Utilities - 11/15/04 - - - P R O C E E D I N G S - - -

Good afternoon, ladies and gentlemen. We're about to start the Committee on Transportation and Public Utilities public hearing on Resolution Number 040821. We have a number of witnesses for today, and we'll to try to work through this process. Ladies and gentlemen, we're trying to conduct a hearing. Could we please have a little quiet in the room. Thank you. We have a couple witnesses with us this afternoon, one of whom is the Chairman of the Board of SEPTA, along with two other board members. They have a time constraint, and I committed to try and get them out as quickly as possible, not because they don't want to spend time with us, but they'd like to spend time with some friends of ours in Harrisburg to further work on funding issues. So with that, please identify 3 040821 - Transportation/Pub.Utilities - 11/15/04 yourselves for the record, and introduce... There are two other board members with us.

Certainly, Chairman. My name is Pat Deon, Chairman of SEPTA. And also with me is board member Jettie Newkirk and Christian DiCicco, along with our general Manager Fay Moore.

Please proceed with your testimony.

I just came today. I'm heading to Harrisburg now. I didn't have time to prepare any formal testimony.

I understand.

But the only testimony that I'd like to get out is very simple. The authority has a $62 million shortfall this year. Over the last seven years we have managed to close up our shortfalls by various means, including becoming more efficient. We have -- We are probably 1800 workers less now than we were when I got on the board seven years ago. We have close to $420 million in savings over that time period. 4 040821 - Transportation/Pub.Utilities - 11/15/04 We're at the point now where we've made all fixes that we think we can get in efficiencies. And now we're going to start cutting into the bone, for lack of a better word. And we're going to have to go through layoffs and drastic draconian service cuts. About a year ago we went up to Harrisburg, and we went through this process of which the... If you go back a little time when we had a tax called the Perta tax, we enjoyed about $35 million in revenue, roughly, which has disappeared. So, a lot of these issues where people are saying that we're inefficient and we're not managing, we've had money actually pulled from our budget in various shapes and forms over the last, you know, five, six years. So when we went to Harrisburg last year, we asked the Governor and the legislature to come up with a permanent fix. We got from the Governor's office, we have to look into the efficiencies of your system and how we look at it. 5 040821 - Transportation/Pub.Utilities - 11/15/04 And transit all over. The whole state's in trouble with transit. It's not just Philadelphia. They sent in a woman I think you guys are very familiar with, who's Arlene Freiner who used to be -- work for City Council and did the budget, and then also went off to work for Amtrack as a CFO. She spent about three or four months in our building, went through all of our budgets, all of our stuff, came back with a glowing recommendation that we deserved to have dedicated funding, we deserved the funding we need to have the system run. So I think that the issues of putting aside anybody's ill feelings towards SEPTA, I think we've done a great job of at least getting this authority into a financially dedicated mode. We do the right things. We try to be responsive every day. And I think we deserve to get this done. It's really been a fight.

Mr. Deon, I'm also aware, if you want to put on the record, haven't there been others or at least one 6 040821 - Transportation/Pub.Utilities - 11/15/04 other study or analysis from a financial standpoint of SEPTA's operations? And what did that show?

There was a mandated study that we go through for our financing for Act which was completed about a year 8 ago, which basically came back with executive 9 summary of we're probably the third or fourth 10 most efficient authority in the country, that 11 we really deserve to have this kind of 12 funding set forth with us. 13 And the other study was done about 14 three months ago. Representative Perzel, 15 Speaker Perzel, put together a committee 16 study, airports, and included transit 17 authorities in it. 18 They came out studies again, and 19 came back with the same recommendations that 20 we should be adequately funded on the -- from 21 Harrisburg. 22

So the focus at 23 this point, again, putting aside any of the 24 day-to-day engagements that riders may have 25 with the system -- And everyone will have 7 040821 - Transportation/Pub.Utilities - 11/15/04 their story. But I think what's critically important -- and I won't hold you up from your mission this afternoon. What's critically important is a unified message, I think, out of Philadelphia, Bucks, Chester, Delaware and Montgomery Counties, which is what SEPTA is. It's not just the transit system for Philadelphia. It's Southeastern Pennsylvania Transportation Authority. That we need a dedicated funding source in order to maintain the current system; if not, make improvements, continue efficiencies, and work together to have a unified transit system. And is that what you're seeking to do?

Exactly. What I have today with me are two of the city board members, that come from the city, who are very good at making sure the city is represented well on this board and that we do the right things. But the flip side of that is that we are a five-county regional board. The 8 040821 - Transportation/Pub.Utilities - 11/15/04 reverse commuting, the schools, the hospitals all depend on this system every day. And to lose service on weekends, to lose the service after 8:00 p.m. will cut into the hospital work, the nursing homes. To lose 1,400 jobs of our great people -- we have great people that work for SEPTA. We got great unions. They do a good job every day. We move a million people. So really, the issue today is, we've all got to work together: Unions, management, the region, to get some dedicated funding for SEPTA, and to make transit in the state of Pennsylvania a priority.

Thank you.

Thank you. I'm going to head up to see our Governor and ex-mayor.

Drive safely.

Thank you very much, Councilman.

And don't exceed the speed limit. Don't exceed the speed limit. 9 040821 - Transportation/Pub.Utilities - 11/15/04

Thank you.

Thank you. Miss Newkirk or Mr. DiCicco, would you like to make any comments as well?

Good afternoon, Councilman. Thank you --

Good afternoon.

-- for the opportunity. As you know, Councilman, I was appointed back in '92. See how things move along when you're having fun.

Absolutely.

And so, I have seen and heard all the complaints against SEPTA, and been there and made some of those complaints myself. I have seen three general managers, three board chair, and been back and forth in terms of Harrisburg, trying to get that dedicated funding. In 1991, if you recall, we thought we had succeeded.

Right. 10 040821 - Transportation/Pub.Utilities - 11/15/04

Then Harrisburg said, well, you know, if you stop begging and make yourselves streamlined and efficient, we will give you the money. And SEPTA did that. It laid off hundreds of employees, and got rid of others through attrition, streamlined its work force, and went through all of those things in terms of becoming financially sound and well managed. A part of becoming that was its present general manager, who at that time was brought abroad as the treasurer, and who helped to bring SEPTA into sound financial footing. So I think that I can say, from the viewpoint of the city, and as a board member, that SEPTA has listened to all of the detractors -- (Councilman Clarke entered the Council hearing room.)

Hello, Councilman. In terms of making itself a well-managed system, it has cut out the fat. 11 040821 - Transportation/Pub.Utilities - 11/15/04 There is no more fat. It has gotten rid of, I think, too many employees. Of course, I get blamed for saying that by some of my suburban colleagues who think that there's no such thing. But in order to run a transportation authority, you need bodies. And I think we need bodies. So, I think we have done all the management things that can be done. If you recall the episode with the Phoenix audit, which talked about performance issues, and equipment, and all of that. So, it's been through every kind of management audit we can think of. It has done the employee breaks, and now it's time for brunch. I'd like to respond just briefly to some of the things I have been hearing, one of which is that SEPTA is threatening once again. SEPTA is mandated or management is mandated by law to present a balanced budget as you know, as is City Council, as is the Mayor, all of us. 12 040821 - Transportation/Pub.Utilities - 11/15/04 And in doing that, it has to have public hearings. And the basis for those public hearings have to be the testimony and presentation of the plan that it will use to balance its budgets. So what has been rolled out is not a threat. It is a proposal and a plan, a proposal to the board, and a plan of what would have to happen in order to balance the budget if the money is not forthcoming. It is not something that management wants to do. And it certainly is not something that board members want to do. Nobody in this city or on the board wants to see a cessation of weekend service. I think it would be disastrous not only for SEPTA, but for the entire region, its riders. So that is not something that non-compassionate suburban board members have presented that they want to do in order to threaten the riders. It is a proposal by management to tell the board members that this is what would have to happen in order to come up with 13 040821 - Transportation/Pub.Utilities - 11/15/04 the balanced budget if the money does not come for dedicated funding, or as they are now talking about, a quick fix from Harrisburg. And so, SEPTA is not threatening. And I would hope that the riders, the constituents, your constituents, SEPTA's constituents, would understand that on this issue, SEPTA, its union, are on their side; that all of us are in this boat together, and if it sinks, we'll all go down together. And so that the animosity against SEPTA can be temporarily put aside. I know I would dare not hope for permanency in this, but temporarily put aside, so that we can all pull forward and work on this funding issue together. And then we can go back to fighting about bus drivers or whatever. Thank you so much, Councilman.

Thank you very much, Ms. Newkirk. Mr. DiCicco, do you have a comment? MR. DiCICCO: Just briefly. Good afternoon, Councilman. 14 040821 - Transportation/Pub.Utilities - 11/15/04 I probably couldn't add much to what Mr. Deon and Ms. Newkirk has said, but I would take this last opportunity to make one last passionate plea to our riders, and to the Governor, and the majority in control in the legislature. These problems are real at SEPTA. The Governor's report by Miss Reiner show the problems at SEPTA, and SEPTA has addressed those problems. The Governor's report -- or Miss Reiner's report about SEPTA concludes that SEPTA has cut the fat, as Miss Newkirk has explained. But it is now up to the Governor to come through with his promise to find a long-term fixed funding source for SEPTA, so that we -- this city, as well as the five counties, finally puts this animal to rest, and we don't have to go back to our riders to bear the cost of public transportation. Thank you.

Thank you. Let me note for the record that 15 040821 - Transportation/Pub.Utilities - 11/15/04 Councilman Clarke is in attendance. And Councilman, any questions? Miss Moore has not testified yet. To Commissioner Deon, who is not here, and Miss Newkirk, and Mr. DiCicco, and then we'll have the General Manager, Fay Moore, I would only say that the presentation that you've made and will make, I think, bring a great clarity to what the issues are and what they are not. My hope is that out of some of this crisis and hysteria, we would be in a position -- and working along, again, with our unions -- to lay out a better case to the general public, and certainly to the riding public, that mass transit is critically important to this region. We will all have, again, our day-to-day issues and contact. It's not just a Philadelphia problem. It's not just a five-county problem. But it is a statewide problem, an issue that is affecting many other transit agencies across the Commonwealth. 16 040821 - Transportation/Pub.Utilities - 11/15/04 Now, we only read about, generally in our papers, about SEPTA, and in many instances we may only care about SEPTA in our region. But I think the issue of mass transit and its importance as an issue, we could all probably stand a lot more education and information around that issue and figure out how we rally around our own transit agencies, and the many others across this Commonwealth that are facing the same kind of problem. So, with that, General Manager Faye Moore, please identify yourself for the record and proceed.

Good afternoon, Councilman Nutter, Councilman Clarke. I am Faye Moore, General Manager of the Southeastern Pennsylvania Transportation Authority, lovingly referred to as SEPTA. Thank you for the opportunity to speak today on the issue of transit funding policy. Utilities - 11/15/04 supporting the economic growth and strength of the region, and the need for dedicated funding, there are a few SEPTA facts that I'd like to share. SEPTA is a public not-for-profit transit operation created in 1964 by the General Assembly in Harrisburg. We were formed from the assets of bankrupt private transit companies. Today our operation includes some 200 routes served by 3,000 vehicles, and we employ approximately 9,000 people. 3 billion. 70 percent of the individuals employed by businesses in Philadelphia central business district use SEPTA to get to their jobs. The Philadelphia International Airport, center city hospitality industry can attract and retain employees in part because SEPTA gets people to their jobs. We get them there for early morning, late night and weekend work schedules. Utilities - 11/15/04 People ride SEPTA to shop, dine, attend events at the sports complex. And all of these activities add and help support our local economy. I would venture to say the customers I just described believe the money they put in the fare box more than pays for all the costs associated with delivering that ride. So they might be a little surprised to learn that their fares, our customers fares, only cover about 50 percent of the cost. The remaining 50 percent comes from state and local subsidy support. Of that, Harrisburg provides the majority of the funding, at 72 percent versus 15 percent for all five counties combined. Although the state is the single largest funding source, the amount of subsidy SEPTA receives from dedicated funding is low, especially compared with other major transit operations across the country. 75 percent of its subsidy from dedicated sources. Unfortunately, the lack of a viable dedicated funding program is not the only issue impacting transit. We have also been affected by the pattern of flat appropriations from the state's annual operating budget. While the subsidy we receive from Harrisburg has many components, only one, the base operating grant, has the potential for annual increases. And the grim reality is, this grant has not increased in six of the last eight years. Had the state operating subsidy grown an average of 3 percent over the last 12 years, a rate lower than inflation, I wouldn't be speaking to you today because there would be $500 million in funding available for transit. Utilities - 11/15/04 so some of you might be wondering what happened. When the current program was passed, it was projected to provide $200 million in funding for public transit by 1992. Unfortunately, it has never reached that expectation some years later. 9 Had dedicated funding achieved 10 anticipated levels and grown 3 percent each 11 year, I wouldn't be appearing before you 12 today, because there would have been an additional $912 million available for transit statewide. Without a stable predictable source of funding, every fiscal year SEPTA faces the daunting task of balancing our operating budget. This process has become highly publicized and frequently criticized, but an increasing sad story nevertheless. Utilities - 11/15/04 for diesel fuel, health care and pensions, and an annual cycle of escalating budget shortfalls. Without a stable, predictable source of funding every year, the authority must hope that Harrisburg provides sufficient general operating budget funding, and that we can identify enough one-time measures to balance our budget, as we have done over my short but long lifetime at SEPTA of nine years. Unfortunately, we do not have any more one-time fixes, and SEPTA is now faced with implementing a contingency plan to close our $62 million deficit.

The contingency plan, which was a subject of public hearings in October, calls for eliminating all weekend service, raising fares by percent, reducing Monday through 21 Friday services by 20 percent, and reducing 22 the associated SEPTA staff. Utilities - 11/15/04 who don't use transit. These reductions will create significant economic consequences for this region. Less transit service will mean more cars on area roadways, especially during rush hour. It will mean more air pollution and greater use of energy resources. Reduced or no service will impact local businesses, especially those with weekend and second and third shift work operations. Employees will not be able to get to work. Shoppers will not be able to get to area retailers or malls. Finally, SEPTA is not just a transit provider. We are a business that spends in excess of half a billion dollars each year buying goods and services. Many of our purchases are with local and Pennsylvania businesses. But with drastically reduced levels of service, SEPTA will be buying fewer supplies, and products, and services. Utilities - 11/15/04 be laid off from SEPTA and forced into a challenging job market. Many might not be readily employed, and could end up requiring social service support, after having gainful employment. If you will recall, I mentioned the authority's assets came from bankrupt private companies. Transit is not a money-making venture and it never has been. Ironically, we are now doing the very things that cause the private companies to falter: Raising fares, and reducing services, until ridership levels could no 15 longer support the service demands. As we are told every day, SEPTA is not perfect. We cannot satisfy every demand or expectation the public may express about public transit in the city or the region. But wouldn't it be wonderful if over the next several years SEPTA was able to devote its full efforts towards running the system and trying to satisfy the public's demands and expectations, and spend less time begging for transit funding? Utilities - 11/15/04 Thank you, Councilman Nutter, for your individual efforts to help our transit. And thanks to you and members of the committee for the opportunity to present this information. Your support of public transit is greatly appreciated, and I do thank my board members for rearranging some very critical times to appear with us today.

Well, thank you very much, Miss Moore. And I think, again, your board members are demonstrating their... not only their regular commitment to SEPTA, but also to mass transit and public funding, but also giving this Council certainly a direct sense of their commitment and support by being here with us. We have been joined by two other members, Councilwoman Donna Reed-Miller, as well as Councilman Jack Kelly, who has committed to staying in the chamber all day long. And if anyone wants to have another hearing, Councilman Kelly will be glad to be 25 040821 - Transportation/Pub.Utilities - 11/15/04 here for that into the evening. Any questions for Miss Moore? Councilman Clarke.

Thank you, Mr. Chairman. Good afternoon. This may not be necessarily a question for you, but you have the mike. With respects to contributions, do we get any federal contributions for SEPTA or to the state beyond capital improvements? Do we get any operational federal contributions?

At one point in time our transit agencies did get federal operating -- direct federal operating assistance. Part of the reason for the 1992 and the 1997 efforts to get additional money to transit is the federal government stopped making direct contributions or subsidy allocations to transit. There is the opportunity for us to get some type of preventive maintenance, but that is definitely part of our capital program. But there is no direct operating subsidy provided to mass transit. 040821 - Transportation/Pub.Utilities - 11/15/04

Why was that stopped?

I'm not really sure why the federal government stopped it. It stopped. I think it was also an effort to push transit and transit concerns back into the states. But it was definitely stopped.

So, has the contributions been redirected or did it simply cut off the line item, no more federal contributions to the states for mass transit, or was it done in a different way?

There was absolutely no 15 direct operating subsidy, and I think we stopped it in about 1997?

'92

'92.

'92?

So as of '92 there was no more direct operating subsidies.

I think there was a Democrat in office then, wasn't it? I'm going to follow up, actually, on some questions that I had maybe a year ago. 27 040821 - Transportation/Pub.Utilities - 11/15/04 And I'm not sure I got any information relating to that. The revenue generated on a county-by-county basis by the various transit divisions -- You have the Philly Transit Division, and you have the transit divisions for individual counties. Do you have information on the revenue generated by those counties? Like Philadelphia, although I know we do have some inner mobile transportation and intercounty transportation. But by and large, a substantial amount of Philly's operations are internal, i.e., the buses and the subways. Do other counties have similar types of operations internally, bus lines that are essentially in that particular county?

We don't necessarily do things... It just so happens that City Transit Division does include mostly City Transit vehicles or vehicles within City Transit. We do most of our accounting by 28 040821 - Transportation/Pub.Utilities - 11/15/04 division. So, the City Transit Division. There's a Frontier Division. Then there's a Victory Division. There is some parallel to where they reside. So, Frontier and Victory would be more in the suburban areas. City Transit is more city focused. Then there's regional rail. But it's not necessarily each by five counties.

So the Frontier could be across county lines.

Could be.

All right. When I asked that question last year, I had asked for a county-by-county basis. And I never got that information. Is it because...

Because there is no 19 county by county. We do it by division.

In the period of a year is there a reason why anybody couldn't have done an analysis on that?

I'm not so sure -- I'd have to go back, but I'm not so sure we understood it to be county by county, as 29 040821 - Transportation/Pub.Utilities - 11/15/04 opposed to division. But even then, I'm not so sure we'd ever be able to give you county by county, the revenue that was generated by county. If you're asking by subsidy, I thought we had provided that information to you.

Well, that's the second part of the question.

Okay.

Because I'm trying to get a sense of the revenue generated on a county-by-county basis. And actually, if you don't have that, I guess you could look at Philadelphia versus the other divisions which are all suburban short term, but I really would like to get the county-by-county information.

Well, again, we don't do anything in terms of revenues generated by county. We do it by division. And, again, you can draw some parallels with those divisions in the counties that represent -- But we don't do 30 040821 - Transportation/Pub.Utilities - 11/15/04 anything county by county, in terms of revenue.

I understand. I'll ask the question again, and probably won't get an answer again. But I'm going to keep asking the question every time you come here. With respects to the subsidy contributed to the counties... And I'm assuming you don't have that on a county-by-county basis, since you don't know. Or do you?

Yes, sir.

So, we have -- we understand the subsidies that go to each county, but we don't understand the revenue generated by each county.

Because in some areas we have the ability to cross bill between divisions. It's still not driven by county, but it's driven by the divisions. So we, can give you that. We can tell you which county --

How do you 31 040821 - Transportation/Pub.Utilities - 11/15/04 determine how much subsidy each county gets?

It's by the division. So we look at each division that would have -- We look at the projected deficits of each one of those divisions, and then --

But you just said -- I asked you did you have it on a county-by-county basis, the subsidy contributed to each county.

No, sir. You asked me by revenue.

All right. Second part of the question was --

Okay. All right.

-- do you have on a county-by-county basis the subsidy that's contributed by the state. And you said yes. But if you're saying that you didn't misunderstood [sic] me, then fine.

Let me just make sure I'm understanding what you're asking. We can tell you how much subsidy is given to us by each one of the five county areas. We can 32 040821 - Transportation/Pub.Utilities - 11/15/04 tell you how much subsidy is provided to us by the state of Pennsylvania. Is that what you're looking for?

Yes.

Okay. We can give you that.

Yes. That's what I'm asking.

Okay. All right.

But you can give me the revenue generated by Philadelphia versus the other divisions.

I can give it to you by division. I just can't give it to you by county.

Okay. But Philly versus other divisions.

City Transit versus Frontier versus Victory versus regional rail; yes, sir, I can give you that.

Okay. All right. How long do you think it will take?

As soon as we get back and can fax it to you. 33 040821 - Transportation/Pub.Utilities - 11/15/04

Okay. I'll look forward to that.

Okay.

You've already answered my next question. With respects to the counties, you say that some of the other counties do have internal operations similar to Philadelphia?

There are some divisions that can be more closely aligned to some of the counties, but we don't have -- with the particular exception of Philadelphia.

What would it take for us to do a county-by-county analysis?

A total realignment of our accounting system.

How difficult would that be?

Enormous and costly.

So, I'm trying to understand how you can determine the subsidy on a county-by-county basis, but yet you have no sense of the revenue generated on 34 040821 - Transportation/Pub.Utilities - 11/15/04 a county-by-county basis. And I would think that the revenue generated would have some correlation to the subsidy that you provide. If this particular county was providing more revenue, maybe they should get back more subsidy.

It is definitely... Revenue by revenue we cannot. But again, we do all our accounting by division. The subsidy is based on a predetermined formula. And activity in each one of those divisions is sort of -- certain level of activity is assumed by each one of the counties.

I hear you. You made yourself quite clear.

Okay.

It kind of makes me get a sense that you don't really want to know how much revenue is generated on a county-by-county basis.

Again --

But yet you can -- I'm just getting a sense that if I 35 040821 - Transportation/Pub.Utilities - 11/15/04 have a particular county, and I'm providing the majority of the revenue, then I probably should be getting back, you know, substantial share of some of the subsidies, right?

Well, it's deficit driven. So if...

If you can't ever determine how much revenue is generated on a county-by-county, then you can't really determine, you know, how much subsidy I should get, in a real sense.

When we get back we will also send you the formula. But the formula is predetermined, and it goes hand in hand with the degree of service or expected deficit expected from each one of the divisions and spelled out by county. So we'll fax you that, too.

So that's by county.

By county, by division. But not by county.

You just said... Wait a minute. 36 040821 - Transportation/Pub.Utilities - 11/15/04

Not by county revenue.

Did you say...

The county is only by the subsidy level. It is not by the revenue generated by each county.

I understand that. You made that clear. I just can't understand how you can determine what the subsidy should be on a county basis but you don't have a sense of what the revenue is on a county basis.

If you look -- When we --

If I may, the formula comes from the state, not from SEPTA.

I understand that.

So that determination is not a decision that SEPTA can make in order to do that figuring. It's the state formula which tells how much the state is going to give. And then based on all these factors, that Ms. Moore has put in, then what the 37 040821 - Transportation/Pub.Utilities - 11/15/04 counties will also put in in terms of subsidy.

I understand that.

So, that is not under the control of SEPTA, in terms of making that determination.

I understand. I mean, there are a lot of things that are not under my control, but I can access the information.

Just a point of clarification. There are two formulas.

Let me tell you where I'm going with this. And I think you probably know. I just have a concern that, you know, the City of Philadelphia's Transit Division is probably creating -- generating more revenue on a per capita basis than the other counties. That's just my belief. But as it relates...

Okay. I wouldn't necessarily agree. I mean... 38 040821 - Transportation/Pub.Utilities - 11/15/04

How do you know that? You're an accountant.

Because again, it's by division. So...

Miss Moore... But Miss Moore, you're telling me that you don't know what you're generating on a county-by-county basis. I tell you what my feelings are. And you say, no, that's wrong. You said you don't know. So how are you going to refute what I'm saying, if you don't know?

Could you tell us in what counties the different divisions operate within?

I think I have somebody here that can give us that detail. And actually, we can mark the places and we can leave copies before we leave of the information that you requested.

You can draw that line around the counties. You can do an overlay.

I didn't say that one, 39 040821 - Transportation/Pub.Utilities - 11/15/04 now.

Good afternoon, Councilman.

Good afternoon.

My name is Joe Casey. I'm Chief Financial Officer for SEPTA. City Transit Division primarily is in the City of Philadelphia. However, there are some routes that enter Bucks County and also Montgomery County.

Right.

Victory Division is primarily in Delaware County. Some of that service also operates in Montgomery County, and some in Chester County. Frontier Division operates in Bucks County, Chester County and Montgomery County. And the regional rail operates throughout the system, throughout the five-county area. I will tell you there was some questions on where the revenue comes from, what county. We do not ask our customers what counties they reside in. City Transit Division includes the 40 040821 - Transportation/Pub.Utilities - 11/15/04 Market-Frankford. A large part of that revenue is generated through Delaware County residents entering through 69th Street. All that revenue is associated with the City Transit Division, even though we know a great deal of those customers, if you will, are residents of Delaware County.

Okay.

Okay. So, we don't we don't know -- In all those revenues are attributable --

I didn't ask you where the people that ride the system live. I just asked you...

But that's what you're asking, as far as the revenue, what county generates the revenue. We don't ask our customers what county they're from. All we know is the City Transit Division. And we know what revenue is generated through the City Transit Division.

In the division.

That's correct. 41 040821 - Transportation/Pub.Utilities - 11/15/04

Right. I didn't ask you where the people live.

Okay.

I thought you asked --

Did you hear me?

If I live in Delaware County, I could very easily board at 69th Street. And that's on the -- It's across the county line, so it's in Delaware County. However, that revenue is recorded in City Transit Division. So, when you were saying that, you know, City Transit might generate a lot of the revenues, that's one of the things that Mr. Casey was pointing out, that while it's attributed to City Transit, if you really looked at it --

And I'm assuming that there are things the exact opposite of that, where a person is boarding somewhere else.

Absolutely, which is why we --

It's attributable to another county. So, at the 42 040821 - Transportation/Pub.Utilities - 11/15/04 end of the day, it may balance out which is why I'm only dealing with the specifics of the county. In this case also happens to be a division, and that revenue generated within that division, all right, and the other divisions. And what I'm simply saying, I'm concerned when I hear that you understand, you know, how much subsidy on a county-by-county basis the county should get, but you don't have a sense of, you know, how much revenue the counties are generating. And you also made reference to the fact that the SEPTA doesn't generate this program, that it's done on a state requirement.

Well, that's where I want to make -- Because there are two formulas. The one that Miss Newkirk was referring to is the matching required for our base operating grant. But then there is another formula, and we'll leave you copies or we're actually -- before we leave, where the 43 040821 - Transportation/Pub.Utilities - 11/15/04 formula is percentages established. And that's how we recognize the subsidy needs for each one of the counties within the divisions.

So, at the end of the day, as an elected official who represents Philadelphians, how could I feel comfortable that Philadelphia is getting its share, Philadelphia County is getting it's share of subsidy, as it relates to the amount of revenue that it generates, on a fair and equitable basis? Because I think that as a lay person and, you know, guy living in North Philadelphia, talking to people, most people believe that the Philadelphia Division generates the majority of the revenue. And a lot of this has to do with, you know, simple visuals. You know, they see a train going to the suburbs, riding the suburbs, four or five people on it. And they see the 48 going down 29th Street, people standing up like sardines, you know. They have to start another bus at 29th and Girard 44 040821 - Transportation/Pub.Utilities - 11/15/04 because by the time the bus gets to 29th and Girard from 29th and Allegheny, it's filled. So the people that live south of 29th and Girard can't get a seat, let alone any place to stand. They see this. But they see in a lot of the suburban counties the level of density is much less that the level of density on the vehicles that are in Philadelphia. So from a layman's perspective, we get the sense that we're spending the bulk of the money, but yet we're not getting, you know, an equitable share of the subsidy coming back into the city. And I don't have -- I don't have an answer. I've been trying to get that answer: It's a fact or it's not a fact. And I don't -- It doesn't seem like I'm going to get it again this year.

I will tell you what we will give you. We'll leave you the formula. When you look at the formula, if you can still make that statement, give us a call and 45 040821 - Transportation/Pub.Utilities - 11/15/04 we'll come back. Because the formula clearly indicates that a significant percentage of the subsidy does, indeed, come into City Transit Division. While it generates a lot of the revenue, it also generates a significant portion of the expenses.

I don't discount that.

It does generate a nice deficit.

Is it done on an equitable basis? That's my question.

And it's by formula. And again, you need to look at the formula. The formula has been in place --

You can achieve whatever you want to achieve...

The formula has been in place for a long time. The formula requires the consensus of the five counties to change the formula.

But if, in fact, the formula is weighted towards the other 46 040821 - Transportation/Pub.Utilities - 11/15/04 counties --

But it is not.

-- then it's likely they'll change the formula.

We'll leave you a copy of the formula. The formula has a significant percentage coming into the City Transit Division.

Will you also leave me a copy of the map, indicating where the divisions are, the City Transit Division, and Frontier, and the Victory?

Well, why don't we leave you this formula? And if you need additional information... Because this might answer the question --

Why can't you leave me a map showing me where the counties are -- where the divisions are?

Because we don't -- Sir, I'm sorry, but we don't walk around with the maps.

Right.

Yeah. We'd have to give 47 040821 - Transportation/Pub.Utilities - 11/15/04 you a system-wide transit map.

I'm sure you'll give the Councilman all the information he needs. Right?

Yes.

Thank you, Mr. Chair. I'll come back.

Okay. Councilwoman Miller.

Thank you, Mr. Chair. Good afternoon. I have a couple questions. What was the gas tax for a few years back for SEPTA? Was that some form of dedicated funding?

First of all, SEPTA cannot benefit from the gas tax. We are prohibited from the State Constitution from benefiting from the gas tax. We received dedicated funding in 1991. It was a series of how we describe it as nuisance tax; in addition to the electric, I guess the real estate taxes on public utilities. That was the biggest piece. That 48 040821 - Transportation/Pub.Utilities - 11/15/04 was -- That was dedicating a nice percentage of dedicated money. But in 1997-'98, we went through deregulations. And the utility portion -- related utility portion dropped from maybe $30 to $40 million. We're getting less than $1 million from it this year.

Can you tell me what Senator Greenleaf's bill and Representative John Taylor's bill is all about, what it actually will do or won't do?

The essence, because I don't have it in front of me, but the essence of it would be to take about three percent of the sales tax and move it as a dedicated source for mass transit.

Okay. Both bills are basically...

Pretty much the same thing, yes, ma'am.

Okay. Because, I mean, you've said it in your testimony, I mean. The cutbacks and the elimination of weekend service would be a 49 040821 - Transportation/Pub.Utilities - 11/15/04 drastic negative impact on the economy here in this city and the surrounding suburban counties. So... What is SEPTA doing? When are these bills going to be introduced? I mean, what's the status? What's going on? I guess that's what I need to know.

I think they have, indeed, been introduced. At this stage in the game we don't know much more than we did before. This is the lame duck session. We are hoping that sometime during this session we will get some type of dedicated funding. From all reports we're hearing, maybe not dedicated funding. This time maybe another one-time fix. So, unfortunately, we'll be back having these types of conversations more than likely next year. I look so forward to them. But we do have people. Taylor -- Senator Greenleaf, who is also a SEPTA board member, that have introduced it. I'm just not sure at this stage of the game whether there's enough time for dedicated funding 50 040821 - Transportation/Pub.Utilities - 11/15/04 bills to be passed.

All right. Thank you.

Councilman Kelly.

Just to follow up, Miss Moore, what is your drop-dead date, as far as the anticipated cuts that you want to make in services? When is it -- In other words, you're saying that the legislature right now may not even get to this until next year.

Right. Right.

But what are you planning to do before this? Or do you still anticipate making those cuts? And if so, how do they affect the senior citizen population and also the disabled population in the city? You mention in your testimony, but I'd just like to know basically what they're anticipating here.

Okay. I can tell you first and next steps. We presented a financial briefing to the board last 51 040821 - Transportation/Pub.Utilities - 11/15/04 Thursday. They have asked us to come back this coming Thursday at a board meeting to give them some idea of other options available. The options will include, if we put weekend service -- If we take it off the table and, you know, keep weekend service, what type of additional fare increases or service reductions might that mean from Monday through Friday. So that's the next thing that we have to do Thursday. If we don't get dedicated funding or some type of fix between now and November 29th, then there is a special board meeting being scheduled for December 2nd, where we will ask the board to consider our recommendations to close the $62.2 million of deficit. The recommendation as it now stands would be the contingency plan.

When would that be put into effect?

The effective date for the fare increase would be the 1st of 52 040821 - Transportation/Pub.Utilities - 11/15/04 January, and the -- Right now the expected time line for the service reductions would be January 23rd.

January 23rd?

Yes.

Thank you.

Any questions? Miss Moore and members of the board, thank you very much.

Thank you, sir.

I don't know what your schedule, Miss Moore, is like. Maybe if you could possibly spend a few more moments with us -- I don't know if any other questions will come up. But I know you have a transit system to run. So, you'll let me know. You'll let me know what your time situation is.

But I will also let you know that in the event I do have to leave, there are staff people that I feel very comfortable can answer questions.

Thank you.

Thank you, again. 53 040821 - Transportation/Pub.Utilities - 11/15/04 UNIDENTIFIED VOICE: I have a question. I'm a SEPTA union local 234 bus operator who got hurt driving a SEPTA bus because the brakes and the steering failed. The accident happened in 1984.

Ma'am. UNIDENTIFIED VOICE: They took away my work disability, and...

Ma'am, you'll have a full opportunity -- UNIDENTIFIED VOICE: I want to know where the money went. Similarly, my workers' comp -- And those things that you're talking about, Mrs. Moore, are those divisions that we're talking about.

Ma'am, you'll have a full opportunity to come up to the table and express yourself. We don't have question and answer back and forth between the two witnesses. If you have a statement that you want to put on the record, you'll do it at the table, like all the other witnesses. Thank you very much. 54 040821 - Transportation/Pub.Utilities - 11/15/04 UNIDENTIFIED VOICE: When will I be able to do that, sir?

When we get through our witness list, ma'am. Mr. Jeff Brooks, President of Transport Workers' Union, Local 234. Congratulations to you and welcome to City Council. Please identify yourself for the record.

My name is Jeffrey Brooks, Senior President of Transport Workers' Union, Local 234 of Philadelphia. I represent City Transit Division and suburban divisions such as Frontier and Red Arrow Division, newly elected and vehemently [sic] involved in the dedicated funding base for SEPTA, as well as the community, as well as our members. Thank you for having me here. And one of the things that wasn't mentioned, and the question wasn't asked, was the fact of the people who will be displaced which are my members, which are obviously your 55 040821 - Transportation/Pub.Utilities - 11/15/04 constituents.

Very much so.

We have an interest from day one, from October 3rd, when my staff was sworn in, as well as myself, to make sure that there will be a dedicated funding base. I've been with SEPTA years. 19 9 of them I've been actively involved in this 10 union. So, I also am aware of 1991 when the 11 dedicated fund was provided for SEPTA. I 12 rode SEPTA's buses up to Harrisburg, as well 13 as my staff and members did so also last 14 week. 15 We have been making every effort to 16 secure our actual legislators in the State of 17 Pennsylvania, secure their commitments for 18 the purpose of a dedicated funding base. 19 One of the things that becomes clear 20 to me is, just tomorrow they're scheduled for 21 all labor leaders in SEPTA to meet with Faye 22 Moore and her staff in reference to possible 23 budget crisis. Although they are anticipating 1400 members to be displaced, furloughed, laid 56 040821 - Transportation/Pub.Utilities - 11/15/04 off, we in fact could very well bear the brunt of this, being the largest union within SEPTA. As myself being representative of close to 5100 members, we understand how vital this is, and not only to ourselves, but because not only are we union members, but also we wear many hats in the community, I myself being a Democratic committeeperson in Olney. But our members also are spread apart in the five counties, not just Philadelphia. Although I was born and raised in Philadelphia, I understand that our members have decided to move elsewhere. But our employment has been a sound employer for quite some time. Our biggest problem in this has been that we viewed that the riding public and some legislators has not taken this seriously. As I said, I've been involved in this union and been employed in this company 57 040821 - Transportation/Pub.Utilities - 11/15/04 for some years. So as a result, I have seen every facet of SEPTA's rise and fall, when it comes to budgetary issues. More so that we also have seen as our operators of vehicles, mechanics and other trades, we have also seen how we, the front line, in essence the front line managers, in the sense of the individuals who service the riding public are the first ones who will be accosted by those same individuals if there's a fare increase. We will be the same ones who will be held accountable, especially in the sense that we have a contract that expires in March of next year. We will not bear the brunt of that with this crisis. But in going to Harrisburg, I've heard certain individuals make statements that were derogatory against our employer. Although we have a history -- And you will recall back in 1998 we filled these halls.

I do remember 58 040821 - Transportation/Pub.Utilities - 11/15/04 that.

Under a 40-day strike. I was the recording secretary at that time.

Yes.

And although we have a history with SEPTA, I understand that we are bound to them, no different than a marriage. Marriages... There are ups and downs. We are seeking counseling at this time. So as a result, to keep a little levity in this, I believe there's nothing else that we have an interest, but our interest, I have made clear to every legislator that I have met with -- And there's been numerous ones.

Mm-hmm.

-- as well as individuals who have proposed bills. We will without question continue to fight, even though there's only a Band-Aid put on this problem. It's a small amount of money, in the sense of how SEPTA does business and the crisis that they face, if there's only a 59 040821 - Transportation/Pub.Utilities - 11/15/04 small amount to fix this problem for the -- for the short term. We are looking or we will proceed on and go forward to make sure that a dedicated funding base occurs, so in fact we are not here year in and year out again wed with our partner with hat in hand. So, at this point, I have members who are calling me every day, in reference to the possibility of a layoff, and that's real. And we're trying to impress upon each and every person who will listen that with our 5100 members, there are votes. And we will, although I stated I'm a Democratic committeeperson, I've made this perfectly clear to every legislator who will listen, I'm bipartisan as president of this local. I will do for those who do for us, period. So, if nothing else, what we ask behind you is to use your influence to make sure that we do secure funds. And my partners in other parts of the state I have been talking to numerous times. And the transit system in the state 60 040821 - Transportation/Pub.Utilities - 11/15/04 of Pennsylvania is not a SEPTA problem. It's a state of Pennsylvania problem. It's a transit problem for all the riders of Pennsylvania. And we are... Without question, we are not going to leave the community and the riding public behind. So, we thank you for this time, and we ask your help in any way possible. Unfortunately, I cannot stay. I have other engagements. I am going on the radio, for one, to beat the drum.

I understand.

But I thank you.

Thank you.

If there's any questions, I'm more than open to it.

Thank you very much. Thank you for your testimony and your commitment. I wish you well in your service. And it's definitely better seeing you this time, without about 1,000 members, to talk about a very serious issue. I appreciate your leadership. 61 040821 - Transportation/Pub.Utilities - 11/15/04 Thank you.

Thank you. Thank you all.

Our next panel will talk about public transit and the potential impact on the center city economy. Paul Levy, Valerie Ferguson, and Joseph Zuritsky, if you could come to the witness table. Denise Early from the Greater Philadelphia Chamber of Commerce had planned to be with us this afternoon. She is unable to be with us, but has left testimony which will be incorporated into the record as if it were read. I'm sure the three of you have had some time to chat. We appreciate your being here. And you will determine among yourselves which will go first, which will keep me out of trouble.

Thank you, Councilman Clarke -- excuse me -- Councilman Nutter. I'm already in trouble. See that.

Miss Ferguson, 62 040821 - Transportation/Pub.Utilities - 11/15/04 would you like to go first? (Laughter.).

My name is Paul Levy. I'm here on behalf of Central Philadelphia Development Corporation, the Transportation Management Association, Center City District. And I'm joined, as you noted, by Valerie Ferguson from the Loew's Hotel, representing the perspective of the hospitality industry. And really a surprising person to join us, but Joe Zuritsky is not only the Chair of our Board; he's the head of a major parking company, and will talk about the impact. I will be very brief because I want to echo I think a lot of what was said by other speakers. But very quickly, this year SEPTA did have a choice to continue to pass on to the public the sort of steady drip, drip, drip of slow cutbacks or to frankly force this issue. Utilities - 11/15/04 strategy, I compliment them because they have really put on to the public agenda. And I compliment Council on putting on to the public agenda the central issue; because, frankly, this is not simply about the importance of jobs or the importance of people getting to work. This is about the competitiveness of the city's economy and the region's economy. It is very, very clear that SEPTA is really essential in bringing together a skilled work force with employers in the downtown. SEPTA's essential in the effort to link residents without opportunity, since it enables those people without cars to get to jobs in the suburbs. SEPTA is essential to our education and health care institutions, since it brings together students and teachers, patients and doctors. Just a few numbers, and then I'll move on very quickly. And I brought copies of my testimony with a map. Utilities - 11/15/04 perspective, for center city: Employers in downtown office buildings pay residents of the region over $5 billion in salaries each year. 7 billion a year out of the office sector is paid to residents of every sector of this city. And the attached map simply shows the salaries generated in the neighborhoods across the city. Over 100,000 people work in downtown office buildings. 70 percent of them take public transit to get to work. The second map and Valerie will address this more, focuses on the hospitality industry. But the hospitality industry generates $368 million per year in salaries to residents of Philadelphia neighborhoods. 90 percent of people in that industry, 90 percent of 55,000 workers, take public transit to work every day. Utilities - 11/15/04 of half the private sector jobs in this city, off from the people in our neighborhoods? What happens to the economy of center city when 120,000 workers a day who are riding transit have a much harder time to get here? What happens when the expressways are filled with the 40 percent surge in traffic? What happens when all those cars try to find their way into 52,000 downtown parking spaces? Realize, too, that in all the efforts that the city, PIDC, and we recently engaged in to retain 82 out of 83 major employers in the downtown. The number one competitive advantage they all cited to being in downtown was public transit and its ability of public transit to bring skilled workers to them. In the efforts to attract new businesses to Philadelphia, this is an essential part of our competitive advantage. Utilities - 11/15/04 leaders, labor leaders, environmentalists, business people, all have come together to support SEPTA's basic proposition. With dedicated funding they can serve us all much better. With dedicated funding, they may have more research and information to provide answers to people in Council. With dedicated funding they could be investing in information technology. With better funding, they could be investing in customer service, all of the things that those of us who occasionally criticize SEPTA are not doing as well as they should. But without dedicated funding all they can do, as Faye Moore said, is go hat in hand each year worrying about day-to-day operations, not planning ahead. 75 percent of SEPTA's funding comes from a dedicated revenue source.

Utilities - 11/15/04 transit systems. New York City Transit gets 30 percent of its revenue. That's three times almost what SEPTA's getting from dedicated transit. 2 percent from dedicated transit. And Boston is 49 percent. If we want to compete with these cities on a level playing field, we need to fund SEPTA accordingly. I think the message that can come from Council, from labor leaders, from business leaders, and from residents, we're all together, and this is not only about Philadelphia. This is the competitiveness of the region as a whole. Thank you.

Thank you.

Good afternoon. Thank you for allowing me to be here today. My name is Valerie Ferguson. I'm the Regional Vice President and Managing Director of the Loew's Philadelphia Hotel. The Loew's Philadelphia Hotel is an 68 040821 - Transportation/Pub.Utilities - 11/15/04 architectural landmark that we were proud to open and restore in the year of 2000. We are proud to be part of the revitalization of the East of Broad, Center City Area. Suspending public transportation on the weekends and dramatically increasing the rates would devastate our businesses and our community. This city does not close down on the weekends. Our hotels are open 365 days a year and hours a day. We don't lock our 12 doors. 13 We are part of an industry which is 14 vital to the economic well-being of the City 15 of Philadelphia and to the direct 12,000 16 employees of the hospitality industry. 17 80 percent of our staff relies on 18 public transportation. 50 percent of the 19 employees of the Loew's Philadelphia have 20 been here since we have opened in 2000. They 21 will be fully vested next year after five 22 years of employment. 23 They will receive benefits that are 24 beyond what their expectations were when they joined us five years ago. 69 040821 - Transportation/Pub.Utilities - 11/15/04 percent of our employees came directly from welfare rolls. Their starting pay ranged between $10 and $12 at that time, plus a benefit program and an employer funded pension plan. Where will they go when they are unable to work due to transportation challenges? We have worked hard and tirelessly to cultivate and build our weekend business in conjunction with the Greater Philadelphia Tourism and Marketing Corporation, and the Philadelphia Convention and Visitors Bureau. We have worked hard to build a world-class city. As a result of those efforts, our occupancy rates have thankfully increased and we are hosting more people from the surrounding areas. Our area attractions between hotel rooms, great shows at the Convention Center, and the historical sites host upwards to 20,000 people on the weekends, and they rely on public transportation. 70 040821 - Transportation/Pub.Utilities - 11/15/04 We have worked to improve our city and our service. We cannot allow this to compromise the lives that have been so positively affected by sustaining a good job with good benefits and long-term growth. Please do not compromise the infrastructure. It's so desperately needed to support economic growth in the community well-being of center city. As my grandparents used to say, we need to make a way out of no way. We all understand the dilemma that's before you and before the legislature in Harrisburg. These are difficult decisions that equate to the measure of those talented individuals and their leadership. Let's continue to move this city forward to the world-class status it so richly deserves.

Thank you. Please identify yourself for the record.

Joe Zuritsky, Chairman of the Center City district, and Chairman and CEO of Parkway Corporation. 71 040821 - Transportation/Pub.Utilities - 11/15/04 Good afternoon, Councilman Nutter, and committee members. I have many good reasons, both civic and financial, to support a dedicated funding source for SEPTA throughout the Commonwealth. I can, however, only speak with knowledge and authority on the impact of SEPTA on center city Philadelphia. It must be clearly understood that the continued economic health and vitality of center city Philadelphia is directly tied to SEPTA's existing services and to its future upgrading. The vast majority of people visiting and working in Philadelphia utilize SEPTA. My own employees, at least 80 percent, come in. And we're open hours a day. I come 19 in using SEPTA. 20 Reducing or eliminating those 21 services would create a huge disruption for 22 all Philadelphia businesses that could not be 23 remedied by any other means of 24 transportation. Therefore, there is no doubt in my 72 040821 - Transportation/Pub.Utilities - 11/15/04 mind that the Philadelphia tax base is directly tied to maintaining SEPTA's existing services. You might think it strange that an officer of a parking company would be so strongly in support of public transportation, but as an owner of real estate and as an operator of parking facilities, I have over the years witnessed short-term disruptions in SEPTA's service that have kept people and business out of the city, and then created chaos in the city streets when they finally came back. Those disruptions have had a negative impact on Philadelphia businesses. So, I strongly urge our Mayor and our City Council to not only continue to support SEPTA, but specifically to help set up a stable and predictable funding source that would allow SEPTA to properly plan and execute its vital functions both now and into the future. Thank you.

Thank you. 73 040821 - Transportation/Pub.Utilities - 11/15/04 Any questions? (No response.)

Thank you very much. Appreciate it. The next panel will talk about public transit and its connection with neighborhood economic development. Andy Toy, Farrah Jiminez, and Suzanne B. Miller. And there was a previously scheduled panelist who was a little under the weather, Richard Voight who is transit consultant and expert. Miss B. Miller, I understand that you also have his testimony which you'll read into the record.

Yes, I do.

Great.

Would you like me to start with his testimony?

That would be fine.

Why don't we? Okay. Thank you, Councilman Nutter. Utilities - 11/15/04 you mentioned, Richard Voight was extremely sorry he couldn't be with you or all of us today. He is an economist with E-Consult and a former SEPTA board member. And I'd like to read his testimony into the record. And I believe you have copies of it. And there's some charts that I'll refer to along the way. SEPTA has periodically faced serious budget challenges, as have all public transit authorities in Pennsylvania. SEPTA currently expects a $62 million operating shortfall in its FY 2005 annual budget. This crisis this year threatens to change public transit in the city and the region as we know it. Dramatically lower service levels, no weekend service, virtually no evening service. These changes will undermine the very viability of the city as a place to live and work. Utilities - 11/15/04 the funding process for public transportation within the region and across the state. But the problem is still our problem. For years financial problems at SEPTA have been viewed as SEPTA's problem, but SEPTA is a creation of the state with the support of regional leaders. The failure to resolve the current budget crisis would be a giant step backward for the region and its leadership. Public subsidies for transit should balance two competing public objectives. Sufficient funding to support a strong public transportation system, with its attendant regional economic benefits, coupled with enough restraint on the growth of those subsidies, to assure that the public systems run efficiently and provide good return on public investments. For the last nine years, spending restraint has dominated public transit funding decisions. This restraint is now threatening not only the viability of SEPTA but the whole region. Utilities - 11/15/04 Rather than depend on uncertain swings of the policy pendulum, funding for public transit should be in a long-term predictable basis that grows at least as rapidly as the rate of inflation. This approach would assure the maintenance of existing service, yet still impose operational cost discipline on the transit authority. If new transit services are needed to preserve the region's quality of life and economic vitality, the base of operating funding must increase to accommodate the new services. Attempts to solve the current budget shortfalls through weekend service elimination, service cuts, and large fare increases are short-sighted for at least four reasons. First, households and businesses have made long-term location choices based on continuation of existing transportation services. Utilities - 11/15/04 negative impact on job access, business vitality and real estate values. The proposed changes will immediately put us in the category of a third-class city. Second, we have a huge investment in public transportation infrastructure, especially rail rights of way which should be -- which should have more service than today, not less. Other regions are literally spending billions of dollars to create a fraction of what we currently have. Third, service reductions inevitably result in declining ridership, resulting in a downward spiral of declining fare revenue and the subsequent need for additional service reductions. Fourth, SEPTA, compared with other public transit providers, is relatively efficient, as is shown in the information below. And I'll refer to some of the charts that are -- that are in his testimony. In order to understand the budget crisis, Richard Voight outlines some key considerations. Utilities - 11/15/04 performance. He notes that SEPTA is among the highest in the nation, in terms of covering its costs with fare revenues, a key indicator of operating efficiency. And as the chart of operating ratios indicates, SEPTA and PATCO have operating ratios that are among the highest of the nation's large systems. 8 percent. And SEPTA comes in at 50 percent. The second consideration is sub-city support.

SEPTA's budget problem has evolved and deepened over several years, primarily because federal subsidies are no longer available for operations, which was noted previously. 6 percent annually. And again, there's a chart that indicates that. Utilities - 11/15/04 Dedicated funds for transit capital, public transit assistive funds have not met initial legislative expectations. Transit capital funds have grown even more slowly than the liquid fuels tax fund that supports highways. And the highway fund has grown relatively slowly. C. And as the Council members will note, Philadelphia is at the bottom of those operation subsidies. Finally, transit's role in the regional growth. Public transportation enhances a competitiveness of metropolitan areas, as Mr. Levy indicated in his previous testimony. Surveys indicate that quality public transportation is one of the business attractions for the Philadelphia metropolitan area. Utilities - 11/15/04 And despite current state budget concerns across the nation, most large metropolitan areas are investing in new services, recognizing that tie between economic vitality and public transportation. And indeed, you'll see a map of the United States on the final page of testimony that indicates various locations where states and regional authorities actually making very substantial subsidy -- or investments in public transportation, and mostly in fixed rail operations. Mr. Voight concludes by stating that public transportation is a key ingredient for the larger goals of Philadelphia. Public transportation provides mobility for all residents of the region. It is crucial for the continued vitality of older cities and towns, and essential for limiting the excessive sprawl and congestion which is so rampant in parts of our outer counties. And finally, it does improve the air quality in this region. Thank you. Utilities - 11/15/04

Thank you for adding Mr. Voight's testimony to the record. Now, you each have your own. Let the record note that Ms. B. Miller has relinquished the mike. Tired of speaking. Please identify yourself for the record.

, which is a community development corporation in Northwest Philadelphia. A. is a community-based non-profit that uses real estate development as a vehicle for neighborhood revitalization. And we've developed more than 25,000 square feet of office space along Germantown Avenue in Mount Airy, and have plans for 2005 to develop another 15,000 square feet along the Avenue, and to reach ground floor and upper floor condominiums. I testify today also as the Chair of the Transportation Committee for Philadelphia's Historic Northwest Coalition. Utilities - 11/15/04 And this coalition is a collaborative effort of member organizations from Chestnut 4 Hill, Mount Airy and Germantown. 5 And we are joined in efforts to 6 enhance visitation and tourism in Northwest 7 Philadelphia. And part of meeting that 8 mission includes working on efforts to 9 enhance transit access, and to protect our 10 transit assets, including the northwest's 11 historic Route 23 streetcar line. 12 In my testimony today I join the 13 leadership of SEPTA, the TWU, and my 14 colleagues in calling upon the Governor and 15 the state legislature to commit the necessary 16 resources to ensure the dedicated funding support for Philadelphia's transit system. But today as a community activist and a real estate developer, I also argue for this commitment, not a stopgap funding, for an agency that many of you as charged with simply moving people from point "A" to point "B," but as an investment in an economic development vehicle that has been grossly under utilized in Philadelphia. Utilities - 11/15/04 From the people's perspective -- and this is something, interestingly enough, people haven't spoken to today -- even when it's moving people from point "A" to point "B," transit is an economic development vehicle. And it can be viewed as an important implement in the welfare to work toolbox. According to the Surface Transportation Policy Project, transit-related costs are second... second only to housing as a percentage of the American household budget. The majority of workers spend approximately percent of their income on 17 transportation, mostly auto-related expenses. 18 And that's high. 19 But the lowest wage earners have a 20 more grim story to tell. It is estimated that low income families spend an average of 40 percent of their household budget on transportation costs. Utilities - 11/15/04 Association, 50 percent of transit trips were from households earning less than $20,000. And we heard today that 70 percent of Philadelphia's work force rides transit. Most of these households did not enjoy alternate means of transportation. And without transit, it is estimated that 9 percent of these families would be unable to 10 travel to work or to access important 11 services. 12 Without access to transit we will 13 have a work force that, while ready to work, 14 will not be able to access quality employment 15 opportunities. 16 And the results of this reality will 17 fall heavily on the state and the city, in 18 the form of probably invisible but certainly long-term subsidies. One of the questions that Councilman Clarke had had earlier was regarding how much the city's revenue... how much of the revenue SEPTA generated was a result of city riders. And I don't know -- I don't remember what the numbers are. Utilities - 11/15/04 memory that I understand that the Philadelphia subsidy, in terms of the per rider subsidy, is higher than the suburban ridership. I believe in the suburban -- for the Philadelphia rider it's 50 percent that they pay towards the cost of their ride, while the suburban rider pays closer to 30 percent. And I think it's probably a question that Council should ask more directly of SEPTA and the state, just to show the regional equity that happens with our low income riders and our city riders who are heavily underwriting the cost of our transit system.

From an economic development perspective, Mount Airy, Chestnut Hill and Germantown are some of the luckier neighborhoods. We are currently well served by public transit, with two regional rail lines, the Route streetcar line, and some 23 other cross lines. Utilities - 11/15/04 well served by transit, is that our neighbors are constantly vigilant on all matters of transit. Several months ago, with the first threats of transit cuts, advocates collected thousands of postcards and petition signatures in protest to what were prepared to be cuts to level of service for our regional rail, and the exclusion of one regional rail line altogether. The Historic Northwest Coalition is organizing efforts to protect our transit assets and have volunteers and staff engaged in related efforts. Of course, the other reason that we are well served may be due in part to our community's understanding and dedication to our origins as a streetcar suburb. The Northwest was first home to summer estates for the wealthy, and the community later evolved into a city suburb with the advent of private rail companies, and the real estate development owners. Utilities - 11/15/04 the connection between transit access and increased home values. During the last threat to reduce service to the Northwest regional rail lines, private developers that were poised to spend several million dollars building luxury housing along a rail stop, halted their development project. This transit-oriented development project was viewed as risky without the selling point of its proximity to an active rail line. And most recently an abandoned brick factory sold to a developer intending to build several homes, mainly because of its proximity to a regional rail line. The Mount Airy, Upsal and Gowan Stations have all been rehabbed and converted to retail, providing riders with coffee, food, and in one instance housing options near transit. Utilities - 11/15/04 streetcar line, where Mount Airy has concentrated all of its commercial real estate development efforts. You should note that the regional -- that Route street car line alone in the 7 Northwest carries 23,000 riders daily. 8 Over the past five years more than 9 $20 million in private investment has come to 10 the Avenue, with another $7 million planned 11 for the next year. And we've attracted more 12 than 24 new businesses in the last two years, 13 with another six scheduled to open by mid 14 2005. 15 Clearly, the Mount Airy renaissance 16 is afoot, but so much of it is dependent and 17 predicated on the strengthening of the Avenue 18 and the return of its active streetcar line. 19 In the Mount Airy Neighborhood Plan 20 recently developed by the Delaware Valley 21 Regional Planning Commission and the City 22 Planning Commission, circulation issues, 23 including the preservation of the regional rail and the restoration of the Route 23 line are considered project priorities. Utilities - 11/15/04 And with the state's dedicated funding, we certainly hope for increased investment in these types of initiatives that will ensure transit continues to be an element of the city's economic development agenda, and that we in the northwest will see millions of dollars, of the like that are being seen in Girard Avenue with the return of its Route streetcar line. 11 Finally, while I didn't include this 12 in my testimony, I have a strong suspicion 13 that part of the problem with a lot of us who 14 are testifying is that we feel very strongly 15 about how important it is to bring resources to our transit agency. But there's a lot of ill-will between community groups and the agency as it's currently constructed. Utilities - 11/15/04 them together with SEPTA to start thinking about transit beyond moving riders, to think of it more as an economic development engine for Philadelphia.

Good afternoon, Councilwomen and men, and Councilwoman. I am Andy Toy, and I'm here to testify in support of additional public dedication of funding for the SEPTA system. I'm here representing the Local Initiative Support Corporation which is a nationwide funder and supporter of community development, that helps non-profit community development corporations or CDC's transform distressed neighborhoods into healthy communities of choice and opportunity, good places to work, do business and raise children. While understanding that no system is perfect, we must also understand that public transportation in the densely populated cities such as Philadelphia has an enormous community and neighborhood economic development impact. Utilities - 11/15/04 LISC's experience in Philadelphia, and in many other cities, clearly demonstrates that investments and support for public transit reap tremendous benefits. In Oakland, California, for example, LISC worked with the community and transit agency, BART, to support the construction of a mixed use, quote unquote, transit village as part of a BART station, instead of a stand-alone parking garage. What was created is a vibrant mixture of housing shops, offices, a library, a child care facility, a pedestrian plaza, and other community services all around the BART station. The project is expected to reduce traffic and pollution in and around Fruitvale, the community, because community residents will have access to a range of goods and services within easy walking distance of the transit station. This project has been hailed as a model for other predominantly minority communities across the country. Utilities - 11/15/04 In Chicago nine years ago, the transit authority planned the demolition of the elevated Green Line, citing under utilization. However, community opposition helped to change the decision in support of $350 million repair program that would clean up the elevated and make it user friendly. A local non-profit, Bethel Newlife, was able to capitalize on the investment with its own investment in a new 23,000 square foot commercial property that connects directly to the renovated station. Ridership at this station continues to increase at over 3,000 per day, and the first 50 of 250 new houses have already been built nearby to capitalize on this investment. Studies and surveys clearly show demographic changes and tastes are driving, no pun intended, more people to live in communities with good transit options. S. and that regions with extensive transit systems like Philadelphia will reap the greatest benefit. In Philadelphia LISC has joined a partnership with 50 other stakeholders and 7 diverse neighborhoods, the Girard Coalition, 8 tied together through SEPTA's reinstitution 9 of the historic Route 15 trolley. 10 The Empowerment Zone, Girard 11 College, North Philadelphia Health Systems, the Zoo, our elected officials, and others, recognized that the trolley would play a key role in bringing neighborhoods and organizations closer together, and that this investment would attract many new riders and investment. How did we know that? Well, the experience in San Francisco was that both residents and tourists loved our historic trolleys that were sold to them for $10,000 each some years ago. Utilities - 11/15/04 communities and the economy more competitive, not to mention making a cleaner environment, fewer auto accidents, and less wasted time due to congestion. And that's why the Route is where it is today or coming to where it 7 is today, where we hope it will be. 8 A look at what kinds of private, 9 public and non-profit leveraging the Route 10 15, $56 million investment, has already 11 helped to stimulate includes well over half a 12 million dollars in funding and in kind 13 services from the Delaware Valley Regional 14 Planning Commission, the William Penn 15 Foundation, Empowerment Zone, and LISC beginning with the community planning and envisioning procession.

2 million to begin making the Avenue more pedestrian friendly to match the trolley ambiance. And the state has pledged an additional $4 million match to extend the improvements further along Girard Avenue. million as well, to upgrade traffic signals along Girard Avenue. The real proof of faith, though, is that the public investment taking place along the Avenue, in part due to the trolley investment, has increased greatly. 500 units planned near 33rd and Girard, 32 new loft condos on 4th Street off of Girard, the rebirth of the Schmidt site into a mixed use vibrant part of the Avenue, an effort underway to attract a supermarket to 27th and Girard, a great connection to the zoo and its million visitors per year. These are just a few of some of the big investments that are taking place on Girard Avenue. And we can safely say that there's a tie-in to the trolley being reintroduced. And the glue that binds this all together is the investment and commitment to public transportation. Utilities - 11/15/04 in, public transportation plays a major role. We need to find more stable funding, not less, for this extremely valuable asset to our communities. Thank you.

Thank you very much. Miss B. Miller.

Good afternoon, Mr. Chairman, members of Council, and especially our Councilwoman, Donna Reed-Miller, who represents Chestnut Hill neighborhood.

All righty. Brings her own cheering section.

My name is Susan B. Miller, and I'm the Executive Director of the Chestnut Hill Business Association, and the Chestnut Hill District, a newly formed neighborhood improvement district. The CHBA is an umbrella organization for more than 200 retailers, restaurants and corporations doing business in or near Chestnut Hill. While Farrah and Andy have spoken 97 040821 - Transportation/Pub.Utilities - 11/15/04 today about transit-oriented development kind of prospectively, I thought it would be helpful to describe for you how fixed rail transportation built Chestnut Hill in the 19th and early 20th century. Just as was reported in last week's Philadelphia Business Journal -- and I have a copy of that article here -- that the new $1.1 billion river line is on track to leverage up to $4.4 billion in private investment, so, too, did 19th century investments in fixed rail lead to privately financed developments in the neighborhoods of Northwest Philadelphia. Indeed, the Chestnut Hill neighborhood exists as it is today because of three 19th century developers, who all had the vision to understand the important connection between fixed rail service and economic development. In 1854, the Chestnut Hill Railroad, which later became the Reading, and is now the R-7 regional SEPTA line, began operations. And almost immediately two men, 98 040821 - Transportation/Pub.Utilities - 11/15/04 Samuel Austin and Charles Taylor, built and sold magnificent homes near the train station. Wealthy individuals loved the village-like setting of Chestnut Hill, and the convenience of commuting by train to center city. And as a result, the east side of the Hill rapidly developed, increasing its population from only 255 residents. In 1884, Henry Houston brought another train line to Chestnut Hill, the Pennsylvania Railroad. Houston, too, built houses along the route of what is now the R-8 line and the west side of the hill was soon populated. Needless to say, Houston understood what SEPTA today seems to not, namely, that the east sides and west sides of the Northwest neighborhoods cannot be served by only one rail line. Equally important to developing these neighborhoods was the Germantown Avenue trolley which ran right through the heart of Northwest Philadelphia. 99 040821 - Transportation/Pub.Utilities - 11/15/04 This trolley started running in 1859 as the Germantown Passenger Railroad with horse cars running on iron rails. These were replaced by electric trolleys starting in 1894. And as it was pointed out to me by Jim Jordan of SEPTA earlier, Chestnut Hill protested that change. So, we're on track. The Chestnut Hill Business District grew up around this trolley line and flourished as a result. Access to public transportation -- and by this I mean fixed rail systems -- continues to play just as important a role today in sustaining the viability of neighborhoods like Chestnut Hill, Mount Airy, Germantown and East Falls. People move to the Northwest because of access to the regional rail lines and the convenience those lines provide. Many residents choose to ride -- to use the R-8 or the R-7 for their daily commutes. They could opt to drive, but they prefer to ride. According to our report issued last year by the Central Philadelphia Development 100 040821 - Transportation/Pub.Utilities - 11/15/04 Corporation, the residents of these communities of the communities served by the R-8 collectively earned $197 million per year working in center city's office district. Do you want to...

Yeah. Just one piece of housekeeping. I need to note for the record the presence of Councilman David Cohen. Thank you.

Thank you.

Please continue.

For these mostly white-collar, higher-than-average-income riders, public transportation is not a ride of last resort. And if service declines, they can vote with their cars, as it were. Although SEPTA did not choose to follow through with its threat last year to shut down the R-8 line, it did elect to cut service dramatically. SEPTA eliminated morning and evening rush hour trains, reducing service to every half hour. Utilities - 11/15/04 center city and Northwest Philadelphia during off-peak hours. If you miss the train, you'll have to wait an hour until the next one. On the weekends, it's even worse, with 90 minutes between trains. These service cuts create inconveniences for daily commuters. And I personally know more than one -- more than a few downtown workers in Northwest who choose to drive now instead of take SEPTA, creating burdens on the roads, not only in the neighborhoods, but also Lincoln Drive and the Schuylkill Drive. The cuts not only create these inconveniences; however, they place tremendous burdens on shift employees at places like the Chestnut Hill Hospital, these employees who work around the clock and on weekends. And the burdens also are on school children who use the R-8 during off-peak hours to travel to and from the many public, magnet, charter and private schools in Northwest Philadelphia and center city. Utilities - 11/15/04 SEPTA's currents threats to eliminate all weekend service would present an overwhelming problem for employers like the hospital which have many employees who use public transportation to get to and from work. The result of the schedule changes and threatened service cuts, of course, is that fewer people in the Northwest will choose to travel by SEPTA. Just as when SEPTA turned the Germantown Avenue trolley into a bus, and ridership decreased by nearly 9,000 passengers a day, ridership almost certainly will decrease on the regional rails because of SEPTA's continued service cuts. And frankly, the roads of Chestnut Hill, Mount Airy, Germantown and East Falls were not designed to accommodate all the traffic that has already resulted and will continue to be created. Utilities - 11/15/04 because of the increased vehicular traffic tearing through residential neighborhoods during morning and evening commutes. With additional service cuts, that traffic will only get worse, harming the ambiance of our pedestrian-oriented shopping district and tree-lined neighborhoods. Reducing service on the very rail lines that helped to create these beautiful residential neighborhoods in the late 1800s is shortsighted and could destroy the fabric of the northwest. SEPTA needs additional funding from the state, and that funding needs to be sustainable. We as a region cannot afford to go through these exercises every single year. And I support SEPTA's efforts to obtain this needed money, as I hope Council will. But I would be extremely disappointed if SEPTA, with money in hand, continued business as usual. Utilities - 11/15/04 want and need those rail systems. If the state provides SEPTA with additional funding, then SEPTA must restore service on the R-8 and the R-7 to every to 6 20 minutes during peak hours, and every half 7 hour during off peak. 8 SEPTA must remove the buses that 9 damage historic Germantown Avenue's 10 character, not to mention the road itself, 11 and to return the Route 23 trolley to 12 service. 13 Neighborhoods like Chestnut Hill and 14 Mount Airy and Germantown developed and 15 thrived because of decisions made by men who understood the link between fixed rail transportation and economic vitality. Let us not permit Northwest Philadelphia, nor the region, to decline because of decisions made by officials who fail to understand that fixed rail is just as important and necessary to those neighborhoods today as it was 150 years ago. Thank you.

Councilwoman 105 040821 - Transportation/Pub.Utilities - 11/15/04 Miller.

Thank you, Mr. Chair. Just want to thank my constituents for coming in and supporting economic stability here in this city. And I also like to thank you too, Mr. Toy. I don't want to leave you out. But we -- But we realize the value of SEPTA and the maintaining of good schedules and weekend schedules and the impact. We already have a problem in Mount Airy, Chestnut Hill, and that's the fact that the Cresham Valley Drive is closed, which has already put the need for more four-way stops, for additional cars we don't need, and traffic jams. We don't need any more with an elimination of service. So, again, I just want to thank you. Thank you for your interest, and thank you for coming in.

Councilman Kelly.

I just have one 106 040821 - Transportation/Pub.Utilities - 11/15/04 question. Thank you, Mr. Chairman. That Route 23, was that a trolley when it first -- when they first originated?

Yeah. It was a horse-drawn trolley.

Was that converted to a bus later on?

Yes. Yes.

It's a bus now. Has the ridership been increased or decreased since the conversion to a bus route?

In 1992, SEPTA decided that it needed to fix the infrastructure on three streetcar lines: The Route 15, the Route 23, and the Route 56, 56 being the northeast, Krajewski's District. The Route 15 was reactivated, and the Route 23, which is still in question. It is still in the SEPTA books listed as a streetcar or a trolley line which is temporarily being operated by buses. The agreement that SEPTA made with SEPTA -- SEPTA made with the city and the 107 040821 - Transportation/Pub.Utilities - 11/15/04 Mayor in 1992 was that they would take five years to improve the infrastructure, and within that five years after 1997, at least, they would be restoring all those lines back as streetcars. We are now in 2004. And it is my understanding that we are in the budget, and you'd have to confirm this with SEPTA, for 2012.

When were they supposed to do that?

They were supposed to do it in 1997 at the latest. It was a five-year agreement. And there is -- and I can share with you testimony in a hearing --

The three routes or just one?

All three.

All three?

All three.

Well, they've repaved Torresdale Avenue, I believe, so I don't know how they could do that.

Yes. That district 108 040821 - Transportation/Pub.Utilities - 11/15/04 has -- SEPTA's spent $1 million to remove all the rail --

Right.

-- and the overhead wire. The Route 23, the reason this coalition, the Historic Northwest Coalition exists is, we're organized around transit as an economic development tool. And we recognize that Toronto and San Francisco, and even the new museum in Allentown have all taken our old PCC cars, restored them, and have made them historical assets. In Allentown what they did is, they used it as a matching grant for federal dollars to create their streetcar museum, a community that didn't really have a streetcar history. And instead, in Philadelphia we've given them away free or at nominal dollars, with the exception of the few that have been restored for the Route 15. It's a real story of the fact that 109 040821 - Transportation/Pub.Utilities - 11/15/04 rail lines and fixed rail are viewed as valuable assets, so long as they serve to take people out on the Schuylkill Valley Metro. But here where we have an existing infrastructure, we undervalue that, and we chose to run buses. When SEPTA changed it from street -- street car lines to bus routes, we now have 23,000 riders. We used to have closer to 32,000 riders.

So, it's a decrease. You lost.

Big decrease. And I can also provide you with actual figures from the American Public Transportation Association, that shows that riders that have options, which tend to be those that are not locked into taking public transit, tend to choose rail transit at a higher percentage. So that... I think it was something like 80 percent or maybe 90 percent of the bus riders tend to be low-income wage 110 040821 - Transportation/Pub.Utilities - 11/15/04 earners, while only percent of families making over $80,000 choose that, while there is a greater percentage of rail transit riders when they're higher income. So, we're also losing them as a population of riders.

Interesting. 8 Thank you, Mr. Chair.

Thank you. Just to mention, Miss Jiminez, your comments and recommendations with regard to a task, force. Excellent recommendations, and I will follow up on those. Appreciate it. Thank you. Thank you very much. The next panel will talk about public transit and its ridership. Jennifer DePaul and Raoul Acosta. Pedro Rodriguez, Peter Javsicas and Aeriel Ben-Amos. And we do have testimony from Jennifer DePaul and Raoul Acosta from the United Spinal Association. That testimony will be added to the record in its entirety. Gentlemen, please identify 111 040821 - Transportation/Pub.Utilities - 11/15/04 yourselves for the record and proceed.

My name is Pedro Rodriguez, P-e-d-r-o; Rodriguez, R-o-d-r-i-g-u-e-z. I'm the Executive Director of the Action Alliance of Senior Citizens of Greater Philadelphia.

My name is Peter Javsicas, J-a-v-s-i-c-a-s. And I am the Director of PennTranS, that's the Pennsylvanians for Transportation Solutions, Incorporated. And I'm also a member of the Philadelphia Transit Campaign.

My name is Ariel Ben-Amos, B-e-n hyphen A-m-o-s. And I serve on the board of Young Involved Philadelphia.

Mr. Chairman, thank you for this opportunity to address City Council on the matter of SEPTA. Philadelphia is home to approximately 260,000 people over the age of 60, those making the City of Philadelphia the largest city in the country with the largest percentage of people over 60 who reside in it. Utilities - 11/15/04 Philadelphia seniors live in every community around the city, including center city, with the largest concentration being in the Northeast part of the city. Philadelphia seniors are more likely to depend on public transportation to get to the doctor's appointment, for shopping, for entertainment, and to visit friends and relatives. Many of them use public transportation to attend senior centers and participate in the life of the city. As a whole, they add a tremendous wealth to the fabric of Philadelphia, not only with their spending on health care related products, but also by volunteering in hundreds of organizations, and by being symbols of history and wisdom in our communities. As evidence of the senior's dependence on public transit, when SEPTA faced a similar budgetary situation, as they do today, and SEPTA proposed the elimination of the C Bus line along Broad Street, thousands of seniors mobilized to oppose it. Utilities - 11/15/04 The stakes this time are a lot greater. We believe that SEPTA's financial situation is truly a calamity, and that only dedicated funding from the state will solve the long-term financial situation of the transit agency. Action Alliance believes that we need to reorder our priorities in the state. SEPTA, we believe, is extracting the maximum that it can from its riders. Proposals that ask for additional contribution from riders by raising fares or eliminating services will only undermine the ability of the agency to operate efficiently in the long run, by deepening a vicious cycle of higher fares and less services, until it becomes irrelevant to the transportation needs of the community at large. Philadelphia elected officials have an obligation to address the situation in a united front, that asks of the state to come up to the plate and meet its obligation. Utilities - 11/15/04 such. I wanted to add that we have had long-standing differences with SEPTA's operation or the paratransit, or the share-a-ride program in the past. And we continue to be critical of how the services are offered to our seniors and disabled individuals in the City of Philadelphia. But we, however, remain committed to the existence of mass transit in Philadelphia and to the good health of SEPTA. Action Alliance has joined with SEPTA and other organizations to make sure we have a viable transit system in the region for now and for generations to come. And let me add that City Council has an additional obligation to come up with a number of ideas to help SEPTA. For example, we believe that City Council should be able to initiate a discussion on helping SEPTA save money on its health care program. Utilities - 11/15/04 prescription drugs imported from Canada. This is an idea that will save hundreds of thousands of dollars to the SEPTA Health and Welfare Fund, and at the same time relieve some pressures on one of the most principal elements, with the rising costs of health care for workers and for people in general in the United States and in Philadelphia in particular. In addition to that, I think City Council has been a little bit way behind the curve in leading the fight for mass transit in Philadelphia in making the case on the state level. The Philadelphia delegation to Harrisburg has not heard sufficiently and has not heard vigorously for elected officials of the city about this crisis. I think mass transit is in crisis in Philadelphia, and I believe that elected officials here in the city have an obligation to speak up and speak with one voice. Thank you.

Thank you. 116 040821 - Transportation/Pub.Utilities - 11/15/04 Please proceed.

I am a SEPTA rider. And as the SEPTA crisis looms over us, I am here today among the many who are looking to City Council for leadership. And thank you, Councilman Nutter and Council members, for holding these hearings. I am the Director of PennTranS. org. And for more than two years this group, made up mostly of engineers, architects and construction contractors, has worked statewide for increased dedicated public transportation funding in Pennsylvania. Why are they doing it? Because their experience working on transit around the world tells them that it's the right thing to do, because they're good at it, at what they do, and because they can make money doing it. And they deserve it. They help create jobs and boost the economy of Pennsylvania. But we at PennTranS have always known that we can't do it alone. Utilities - 11/15/04 current SEPTA crisis has brought together the broad spectrum of stakeholders represented here today. I think everyone here wants to save our transit, save our jobs, save our economy, save our environment, and save our quality of life. I said SEPTA crisis. This is no 10 SEPTA crisis. It's a Philadelphia crisis, it's a Montgomery County crisis, a Chester County crisis, a Delaware County, Bucks County, New Jersey and Delaware crisis. It's also a Southeastern Pennsylvania and Commonwealth of Pennsylvania crisis. If you only drive a car, if you only walk, if you never leave your house, you still depend on the public transportation that keeps our cities and towns going, helps keep the roads open for the cars and trucks, cuts down on air pollution, and provides mobility for people who can't drive. Does public transportation pay for itself? No, it doesn't, not anywhere in the world. Utilities - 11/15/04 transportation, even if we don't use it? Yes, we have to, just like we pay for schools, streetlights, sidewalks and sewers. No one says, gee, the streetlights aren't bringing in enough money. Let's turn them off. You just know that you simply have to have them so that everything else can go on. With still another threat of service cuts and fare increases, more and more of the public is waking up to this understanding, and we need not just the PennTranS group, but all these individuals, all these stakeholders, all these advocates. com. Utilities - 11/15/04 workers, seniors, school children and teachers. Did I leave anyone out? Yes. Everybody else. Whether you are a member or not, everybody else is represented by the Philly Transit Campaign, because the life of this city and all the surrounding counties depends on reliable, accessible, affordable, user-friendly public transportation. In June of this year, the Philadelphia Transit Campaign sponsored its first public rally here in town at the state office building. About 40 people came, including the TWU 234. In October, the Philadelphia Transit Campaign staged its first Harrisburg rally. 100 Philadelphians got on the buses and came to Harrisburg. Utilities - 11/15/04 and union members from Philadelphia and Pittsburgh filled the Capitol Rotunda with the biggest pro transit rally Harrisburg has ever seen. Organizations who helped with the November 10th rally include the Greater Philadelphia Urban Affairs Coalition; the Transport Workers Union, Local 234; the Save Transit Coalition; the Greater Philadelphia Hotel Association; Project HOME; PennTranS; Action Alliance of Senior Citizens; IBE Local 98; the Philadelphia Black Clergy; Young Involved Philadelphia; Brother Rob on WURD AM 900; the Hero Program; the City Lights Network; and other individuals and smaller organizations. So, I'm proud to say that in addition to being part of PennTranS I'm an active member of the Philadelphia Transit Campaign. And from that group, I would like to particularly thank Greg McKinley, who has helped involve many critically important community and church groups. Utilities - 11/15/04 The Philadelphia Transit Campaign mailing list has grown from a few hundred to over 3,000 names.

The rallies and other activities have stimulated thousands of letters, phone calls and e-mails to our political leaders here and in Harrisburg. These people are mobilizing. These people are sending a message to SEPTA, to members of City Council, to Mayor Street, Governor Rendell, Representative Perzel, and to all our Southeastern Region Senators and Representatives in Harrisburg. Please encourage your colleagues who are trying to address this problem once and for all. Listen to Senator Stewart Greenleaf. Listen to Representative John Taylor, and their many co-sponsors, both Republican and Democratic, who have signed on to legislation that would provide adequate, reliable and dedicated funding for public transportation. Utilities - 11/15/04 testified here today. We don't need to just save public transportation. We need to make it better. Is SEPTA good enough the way it is? I don't think so. Do you? Public transportation needs to be a first choice, not a last resort. Riding a bus should not be your punishment for not driving. The proposed new funding should not be the end but the beginning of better service, better management, better governance, better accountability, and real engagement of the ridership in the SEPTA policy-making process. For the economic, social, cultural and environmental health of Philadelphia and all of Pennsylvania, we need a new pass, a new pass for public transportation. So, funding or no funding, stopgap, band-aid or permanent funding, groups like the Philadelphia Transit Campaign and PennTranS are going to keep working for better public transportation. Utilities - 11/15/04 We urge all here to join with us in the effort. org. But right now I say to City Council, please help us get the money. The riders need it. The transit agencies, and the unions need it. The business community needs it, and everyone in Pennsylvania needs it, whether they realize it yet or not. Get Philadelphia and Pennsylvania that ticket to ride into a better future. Thank you.

Thank you very much. Please proceed with your testimony.

Thank you. My name is Ariel Ben-Amos. I am a recent graduate of the University of Pennsylvania, a transportation planning consultant. And I serve on the Board of Young Involved Philadelphia. And I just want to thank you, Councilman Nutter, for inviting us.

You're welcome. 124 040821 - Transportation/Pub.Utilities - 11/15/04

Earlier this year, Young Involved Philadelphia rallied to save the Real World Philadelphia, popular MTV TV show, and has hosted public forums to educate our citizens on issues ranging from public health to what was in July a public forum on today's SEPTA budget crisis. For four years Young Involved Philadelphia has worked to act as a voice of the new generation of Philadelphia citizens. And I am here today because our membership recognizes that the long-term health of the city rests on that of SEPTA. We at Young Involved Philadelphia believe that if the Governor and the legislator do not work together to provide dedicated funding for this crucial resource, then it will do serious harm to the city's recent commendable efforts to reverse the brain drain. Courting young professionals is not simply a matter of creating one big campus, but is ensuring that our city, which pulses with excitement and is accessible at all 125 040821 - Transportation/Pub.Utilities - 11/15/04 hours of the night. The city's flourishing restaurant scene, its diverse artistic and cultural offerings and vibrant nightlife all contribute to Philadelphia's top ranking 7 in Forbes Best Cities for Singles, and could 8 not flourish if SEPTA is forced to carry out 9 its proposed cuts, eliminating nights and 10 weekend services. 11 But whether or not stopgap funding 12 is provided to prevent SEPTA from initiating 13 these harrowing cuts, it is a fact that 14 cities that are the most successful at luring 15 young professionals provide significant 16 dedicated funding. 17 Boston, which according to urban 18 economic -- urban economist Richard Florida's 19 landmark study, the Rise of the Creative 20 Class, has the country's third-largest population of young creative professionals, and has a transit system that receives almost one-half of its operating budget from dedicated sources. Similarly, San Francisco, fifth on 126 040821 - Transportation/Pub.Utilities - 11/15/04 Florida's list, receives nearly one-half of its funding from dedicated sources. And Minneapolis, which is sixth on the list, receives a third of its operating budget from dedicated funding sources. These cities recognize that transit is fundamental to a dynamic lifestyle which appeals to the young professional. Creative cities, as Richard Florida would call them, are exciting, accessible and inviting. But it does not matter how exciting Philadelphia is, if we do not have a transit system that is struggling to maintain capacity. We cannot pretend to be accessible when routes are cut, and we cannot pretend to be inviting if our fares grow ever more prohibitive. Dedicated funding removes the budgetary burden of financing the transit system from the consumer, and makes it easier to get on the bus and head downtown. A stable SEPTA is crucial to young and old Philadelphians alike, and I urge 127 040821 - Transportation/Pub.Utilities - 11/15/04 Council to work both with the transit authority and its colleagues in Harrisburg to assure that SEPTA has the dedicated funding that it desperately needs to provide quality service to strengthen the city and the region.

Thank you very much for your testimony, and for taking the time to come out and speak on such and important issue. And I appreciate the perspectives that you have shared with us. Thank you very very much. Thank you. Our consumer advocate, Lance Haver.

Thank you very much, Councilman. It's been a long day for you, and I have with me all of the numbers that your staff -- Miss Chapman asked me to supply. I'm not going to read them into the record. You've heard enough words. The fundamental question is, what do we do? This is -- In some ways what's happening is almost beyond words. SEPTA has a proposal that will eliminate service for 128 040821 - Transportation/Pub.Utilities - 11/15/04 the overwhelming majority of Philadelphians. We have to recognize, I believe, that the City of Philadelphia is going to be under attack for the next four years. And if we don't use this as an opportunity to learn, to build, to fight back, to get the things that we need, we will be constantly in the same position. I don't want to belabor the point. I know that you are doing the right thing. I know that your heart is in the right place. But simply adding to all of the other words that have been said this afternoon isn't going to change the fundamental fact. Until we can get committeepeople, ward leaders, Council people, the Mayor, everyone involved, we're going to really be suffering.

Let the record note I don't think Mr. Haver ever delivered such a short message. I don't even know what to do at this point. You've been clear. You've made sense. You didn't read your testimony, so I can't attack it. I mean, you 129 040821 - Transportation/Pub.Utilities - 11/15/04 have completely disarmed me here. I may need to call a recess just to get myself together. (Laughter.)

But in any event.. No. Seriously, I appreciate your testimony. You know that while today's hearing was primarily focused on the need for dedicated funding, and an avoidance of many of the drastic situations that you've laid out, I would certainly like to suggest the opportunity to work closer with your office -- and we have our City Planning Commission Director coming up in a second -- to work on long-term issues about transit, standards of service, many of the things that were mentioned earlier by Miss Jiminez and Miss B. Miller. And I think a more than appropriate role, of course, for the consumer advocate is to be an advocate for consumers. And consumers in Philadelphia are certainly a significant portion of what goes on with 130 040821 - Transportation/Pub.Utilities - 11/15/04 SEPTA. We utilize the service. And so, I think that the brevity of your comments, I think, bring to clarity the importance of what's going on. And you've had the benefit of listening to all the other -- all the other comments. But I look forward to working with you on long-term issues.

Thank you. If I may be so bold, would it be possible to ask --

You will be anyway.

Yes.

Regardless of what I say. So, go ahead.

Perhaps you could ask each of the Council people, especially the Republican-at-large Council people, to send letters to their ward leaders, to make sure that they understand how horrible this will be for the average SEPTA rider, that -- I only wish there were some words because you've heard them all. You understand it, I 131 040821 - Transportation/Pub.Utilities - 11/15/04 know. And it's somewhat foolish for me to be addressing it to you. But it's just beyond belief that this is what we're faced with: No weekend service, no evening service, fare increase that's in such large proportions that it will be the end of SEPTA, and we're not mobilized to fight back. Thank you.

Thank you. Thank you very much, Mr. Haver. Our City Planning Commission Director, Maxine Griffith.

I assume you have my 100 pages of remarks which I'm going to read in total.

Absolutely. I will insist that you read it all into the record. (Laughter.)

Good afternoon, Councilman Nutter, and members of the City Council. Utilities - 11/15/04 Director of the City Planning Commission and Secretary of Strategic Planning. Thank you for the invitation to present testimony on the importance of public transit to the city and the region, and to provide information on the administration's involvement in public transit planning issues. As I'm sure you know, the Office of Strategic Planning presently incorporates many of the functions of the former Mayor's Office of Transportation. In addition, the Planning Commission's policy staff undertakes numerous transportation plans and studies. We coordinate our work at both the staff and cabinet level, and with the full range of city agencies and offices, most especially with the Commerce Director, Housing Secretary and Managing Director. The City Planning Commission and the City's Office of Strategic Planning are actively engaged in both local and regional transit planning. Utilities - 11/15/04 We represent the Mayor on the Delaware Valley Regional Planning Commission and as the area's Metropolitan Planning Organization, must review and approve all federal transportation funding for the Philadelphia region. We also take part in a number of DVRPC transit-related subcommittees and working groups. For instance, we serve along with the Streets Department as members of the DVRPC's Regional Transportation Committee. This committee reviews and makes technical recommendations regarding the use of federal, state and local funding for transportation projects in the nine-county Southeastern Pennsylvania and Southern New Jersey region. We have also been awarded several federally-funded transit planning grants for studies over the past several years. And what you see in italics -- And Mr. Councilman I suggest that due to the lateness of the hour, perhaps I won't enumerate. Utilities - 11/15/04 SEPTA's bi-monthly city-county committee meetings, at which a variety of transit-related issues and targets are discussed. The Central Philadelphia Transportation Management Association, and the Mayor's Commission for People with Disabilities both have transportation committees in which city staff participates. We also are members of the steering or advisory committees for numerous public transportation studies sponsored by other entities. At present we are involved in an advisory role on the Delaware River Port Authority's Routes 55 to Philadelphia Corridor Transit Study, and on SEPTA's 52nd Street City Branch Connector Study which is just getting under way. Now I would like to focus on the specific critical transit issue at hand. Utilities - 11/15/04 effective and comprehensive transportation system that can move people and goods quickly and efficiently. Our current transit infrastructure provides the basis for what could be a significant competitive advantage for our city. However, a fiscally sound and operationally effective regional transit system is critical to secure this advantage and to promote a healthy economic future for the city and the region. 2 million operating budget deficit by increasing fares up to percent 19 and reducing transit services across the 20 board by 20 percent. 21 Furthermore, it is our understanding 22 that these cutbacks would include the 23 suspension of all weekend transit, regional 24 rail and paratransit services. Utilities - 11/15/04 our city and for the regional economy, and the negative consequences would reverberate statewide. In addition to the benefits of a healthy and efficient transit system, we must also consider the negative impact of an ailing one. With a high proportion of transit-dependent households, the City of Philadelphia accounts for 30 percent of SEPTA's regional rail division ridership. In West Philadelphia, workers who transfer daily at 54th Street and City Line Avenue between suburban lines and SEPTA's Number 52 and 65 Bus would suffer. Students and faculty who travel to and from St.

Joseph's University to area restaurants and retail stores would suffer, and so would the businesses they frequent. If there are cutbacks on the C Bus or the Broad Street Line, how would elderly patients gets to the Philadelphia Geriatric Center? Utilities - 11/15/04 indirectly by limiting this service. And what would happen to the students of Olney High School if service is cut on the Bus? 6 Transit infrastructure provides a 7 lifeline to the young, the poor, and the 8 elderly. And although we are here to consider a dollars and cents issue, the negative impacts of draconian cuts in transit service would be felt in human terms. Service cuts are also harmful to long-term ridership patterns, thus reducing revenue. History shows us that steep fare increases, like the proposed percent 16 increase, will cause many individuals to 17 abandon public transit altogether, 18 exacerbating a negative spiral of decline. 19 This administration, therefore, 20 joins with civic and business leadership and 21 with the residents of Philadelphia in the 22 belief that what is needed is adequate and 23 predictable state operating assistance for 24 public transit in Pennsylvania. Utilities - 11/15/04 States of Massachusetts, New York and Illinois all provide substantial assistance to public transit in their major cites. Their contributions to transit authority budgets from dedicated state funds range from to as much as 50 percent. 8 Pennsylvania currently does not 9 provide any dedicated funding for transit. 10 Rather, annual appropriations for this 11 purpose are made by the General Assembly. 12 This lack of predictability requires 13 Pennsylvania transit authorities to engage in 14 an annual crisis management effort to close 15 budget gaps. 16 Clearly, a permanent, dedicated 17 funding source is needed. This 18 administration will continue to advocate for 19 affordable and efficient transit, operating 20 for the benefit of residents and in support 21 of commerce. Utilities - 11/15/04 the Commonwealth forge ahead into the 21st century. Thank you, and I would be happy to respond to any questions you have. I'm also accompanied by Gary Jasib, our Director for Strategic Planning and Policy. And he also coordinates our transit and transportation activities.

Thank you very much for your testimony. I only have one issue I'd like to raise which is kind of a bit of reconciling between some statements. In your testimony you made reference to... In the sentences, Pennsylvania currently does not provide any dedicated funding for transit. And in Miss Moore's testimony she makes reference to a number of other cities. And then says, by comparison SEPTA only receives 13.75 percent of its subsidy from dedicated funding. Can you maybe reconcile those two statements?

Maybe Gary can. 140 040821 - Transportation/Pub.Utilities - 11/15/04

Mr. Jastrab, please identify yourself for the record.

I'm Gary Jastrab. I'm Director of the Strategic Planning and Policy Division at the Planning Commission. In talking about dedicated funding, I think what we're referring to is a source of funding that will provide reliable, predictable -- and a predictable source of funding for transit agencies across the state. Currently I believe that there are some state acts that had been passed in years past, primarily for capital purposes. Some of the funding for those acts have been used for operating purposes. And the need to close this budget deficit, this operating budget deficit, is clearly an operating budget related issue. Sources of funding for assisting the operating budget of SEPTA are clearly needed and what we are attempting to address in this testimony.

Okay. Well, I 141 040821 - Transportation/Pub.Utilities - 11/15/04 mean, I heard your response, but I'm just trying to make sure I understand. Are you saying that there's no 5 dedicated funding for operating, and that the SEPTA testimony with regard to 13 and three-quarter percent of its subsidy is on the capital side? I just want to make sure that the record is clear on the issue.

I think it may have to do with the definition of the word dedicated. But since the speaker is here, perhaps...

Let's get a SEPTA person up.

Yeah. There's always a SEPTA person around when you need one.

Always. Always. Always. (Laughter.)

Do you still have that saying we're getting there, SEPTA? Oh, you're there already. Okay. All right.

Good afternoon, Councilman Nutter. My name is Richard 142 040821 - Transportation/Pub.Utilities - 11/15/04 Burnfield. I'm Budget Director at SEPTA.

Great.

I'm speculating on the difference here. There was dedicated funding that was passed back in 1991 by the state.

Right.

The intent of that dedicated funding was to use that for the capital budget.

Okay.

SEPTA, at its option, can use some of those funds for the operating budget. We do so. And that's the 13 percent that is used for -- of dedicated funding that's used for the operating budget. But it means that we could have used it for capital dollars which was the initial intent.

And so we don't really consider that to be dedicated funding, since it was dedicated with regard to capital, rather than operating. And I think that's what Gary was saying in perhaps more 143 040821 - Transportation/Pub.Utilities - 11/15/04 words.

Okay. So, just so I'm clear, SEPTA receives certain dollars for capital purposes. And it has the authority, as given by the state, to dedicate a portion of that to operating. And you have taken the position... And is 13.75 the percentage that you always take or utilize?

The percent is 12 the current portion of our operating budget 13 that is used for balancing the budget. The dollars that we have used have been part of the one-time fixes to help balance the budget. Two years ago we transferred $37 million of dedicated funds from the capital budget to the operating budget to help balance the budget. So, we use it -- We have been using it for the last couple of years.

Okay. And so, therefore, the statement that the Commonwealth of Pennsylvania does not have presently a dedicated source of regular and 144 040821 - Transportation/Pub.Utilities - 11/15/04 renewing funding solely for operating costs of the transit system; is that correct?

That's correct.

Okay.

If I can add, Councilman, with my capital program and budget hat on, it also means that --

Are we going to have another capital program hearing? I mean, is that where we're going, Miss Griffith?

I so enjoy it, Councilman.

Yes, I see. You seem to not to want to get away from it.

It means that the city's contribution to capital could indeed be lessened, if the state capital funding could be used for what it was originally intended for.

Okay. You know, I mean, so, therefore, we wouldn't have had that fight at the last capital budget hearing because they'd have their money and we could 145 040821 - Transportation/Pub.Utilities - 11/15/04 have done our thing.

Councilman, we never fight. We only discuss.

We have engaging discussions, yes. Okay. That was the only... I just wanted to make sure. And I appreciate the clarity on the issue. I think it's educational. And even when we think we're using the same term for the same reason, sometimes that might not be the case. Thank you very much...

Thank you.

...Secretary Griffith, for your testimony and your concern about public transit. Thank you. Okay. The last individuals I have are Mary Abrams and Ann Washington. UNIDENTIFIED VOICE: Yes, we're here. Wonderful.

Need you to be over there. UNIDENTIFIED VOICE: Good afternoon. 146 040821 - Transportation/Pub.Utilities - 11/15/04

Excuse me for standing, but I need to stand for a few minutes. Those of you that are still here, thank you so much for staying here.

Please identify yourself for the record, ma'am.

And thank you, Councilman. My name is Mary A. Abrams, A-b-r-a-m-s. Please remember to use the middle initial. I'm here this afternoon requesting... Thank you so much. I'm here this afternoon requesting, pleading and begging for your assistance, for your help, for humanitarian help. I've been hearing this afternoon about SEPTA not having ample funds. One of the reasons why SEPTA does not have ample funds, because SEPTA has a history, a long history of misappropriating funds or not taking care of some of the most important people that are in their system, and that is the bus operators and the mechanics. I've been hearing a lot about the 147 040821 - Transportation/Pub.Utilities - 11/15/04 people, the professional people, but I didn't -- I've heard very little about the professional bus operators and the professional mechanics. Without us, there's nothing. You can have all the people at the top. You need the people on the bottom also.

Right.

Part of the reason why I'm asking for humanitarian assistance because I'm a SEPTA bus operator. I was hired in 1980. 1984 I was driving a RTS bus that had no brakes and no steering. Because of that, you have standing here before you a broke woman, broke in body and spirit, and broke financially. When I went to SEPTA, I was not a broke woman. I was not broke mentally, physically, spiritually or financially. Now I am. I was involved in a bus accident on August the 3rd, 1984. As I said, the bus had no brakes. I was driving the 55 Bus, Doylestown Bus, coming out of Doylestown, coming down Main Street, down a hill. 148 040821 - Transportation/Pub.Utilities - 11/15/04 I went to apply the brakes to pick up a passenger. I found out I had no brakes. I skid -- The bus skidded 146 feet downhill head on into a utility pole. The new RTS buses were made of fiberglass. Thank God I wasn't a heavy woman because I was doing everything I could humanly possible to keep the steering column and the front of that bus from killing me. Because of that, I messed up my back. I have severe back injuries, which has caused me to be deemed totally and permanently disabled by SEPTA's own medical department medical director. After that happened, to make a long story short, I have been treated like anything other than a human being. This is something that is very common for SEPTA, for SEPTA's Medical Department, for SEPTA's Medical Director, for SEPTA's people who are in the high places. Now, you people obviously don't understand what's going on. And they've taken this, and its part of a -- I call it a 149 040821 - Transportation/Pub.Utilities - 11/15/04 Ponzi scheme, meaning they hire female bus operators who are primarily black. And you know what I'm talking about because you see the women that are driving those buses. They are black females. You don't see any Hispanics. You don't see any whites. You don't see anybody else but mostly us. And what we have in common is that not only are we females, but we have dependent children and we're single, the majority of us. Why? Because they know that we make excellent employees. We go to work every day. We don't get sick. Our children don't get sick. We don't beg. They give us the worst runs there. We work the jobs. Our male counterparts -- They give us the worst runs. They work us like dogs on the line. We don't complain. We work. We don't cry. We work. Then they turn around. Part of our reward is --

Miss Abrams?

Yes.

I hate to 150 040821 - Transportation/Pub.Utilities - 11/15/04 interrupt you. I do need to ask you, just for the purpose of this hearing -- And I appreciate the depth and seriousness of your testimony. What I need to know, because of the type of hearing that we're having -- and there are SEPTA representatives here who can address the issues that you have raised. And I appreciate you putting some of this information on the record. But do you have a position on the issue of dedicated funding? That's what this hearing is for.

Yes, sir.

Okay. What is it, ma'am?

The reason why SEPTA is not receiving any money is because I myself personally, among other people, sent letters of complaint and letters of requesting of help and assistance, and of us receiving our disability benefit to the President. And whenever the President gets a -- Well, a lot of people don't understand and are not aware of: Whenever any citizen of 151 040821 - Transportation/Pub.Utilities - 11/15/04 these United States of America sends the -- sends a package of that nature and of that seriousness, because I am in fear for the health and safety of myself and my family, and I can prove it. This is a situation that's been going on for years, my fight to get my 9 disability benefits. 10 And when the letter was sent, that 11 automatically will stop, put a freeze on 12 SEPTA's finances, any other transportation 13 finances. Not only SEPTA. Even the 14 educational system. 15 So you see, we little people, we do 16 have a recourse. We do have a voice, and we 17 can be listened to. And the pen is mightier 18 than the sword. 19 So now, if SEPTA -- And one part of 20 that investigation was my own investigation which I sent to the President, President George Bush, is this: I've discovered, sir, that SEPTA's supposed to be self insured. Well, if SEPTA is self insured, why am I sitting -- standing 152 040821 - Transportation/Pub.Utilities - 11/15/04 here with all of these different insurance companies in my presence?

Ma'am, it is impossible for me to respond to the issues you raise.

Sir, I'm not asking you to respond to it yet. First, I have to make you aware of it.

Well, you have made me aware of it. But there's nothing I can do about it in my capacity. Your issue is, in fact, with SEPTA.

Sir?

And there's nothing I can do in this hearing to assist you.

No, it's not just with SEPTA.

Okay.

It now affects the people of Philadelphia, as well as the people in Trenton in the state of New Jersey.

Well, I appreciate that. 153 040821 - Transportation/Pub.Utilities - 11/15/04

Because the funding is being held up because of this Ponzi scheme that is being used.

So, what you're telling me and the committee is that SEPTA's funding situation and its need for dedicated funds has been held up because of your claim against SEPTA? Is that what you're telling me, ma'am?

Partially, just to give you an example. We have cases -- My case here? I'm in two separate courts at the same time.

Ma'am... Ma'am...

Workers -- Excuse me. Workers --

No. Ma'am, excuse me.

Go ahead.

I'm running the hearing. You have a minute to speak

Yes, sir.

And then we're 154 040821 - Transportation/Pub.Utilities - 11/15/04 going to go to the lady, and then we're going to recess. That's what's going to happen. Okay?

Well, sir --

I've been very respectful to you.

All right. What I'm requesting...

You have 45 seconds, ma'am.

My situation is this, sir: I want to have my benefits, all of my benefits restored.

Mm-hmm.

And I would like -- I'm asking the Council to investigate SEPTA with all of these different insurances that they have. They have more -- They're supposed to be self insured, and I have documentation to prove that they are not self insured. And since they are not self insured, this is where a lot of the money is going. Plus, they're not paying the -- I'm not receiving my disability. So, now, where is 155 040821 - Transportation/Pub.Utilities - 11/15/04 my money that I'm supposed to be receiving going?

Okay. Thank you for your testimony. Miss Washington.

My name is Ann R. Washington. At this present time I did not bring any documentations with me to support my allegation, so I would like to come back at another date.

That will be fine.

And state mine with facts, and stick to the point that I'm here for.

I gotcha. I understand.

Thank you.

Thank you very much. There being no other testimony, this hearing is adjourned. (Hearing concluded at 4:46 p.m.) 156 CERTIFICATE I HEREBY CERTIFY that the proceedings and evidence are contained fully and accurately in the stenographic notes taken by me upon the public hearing of The Philadelphia City Council, taken on November 15, 2004, and that this is a true and correct transcript of same. _____________________________ DAVID A. DEIK, RPR and Commissioner of Deeds (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)