Pa. Senate leaders look to ability video games tax as transit funding debate continues

The highest-ranking Republican within the state Senate described the looming service cuts and fare hikes at Pennsylvania’s largest transit company as a “manufactured crisis” that doesn’t must occur.

“This is (the Southeastern Pennsylvania Transit Authority) wanting exactly what they want and holding everyone hostage,” mentioned Senate President Pro Tempore Kim Ward, R-Hempfield.

After Republican and Democratic proposals to offer extra funding for transit businesses stalled final week in Harrisburg, SEPTA mentioned it will start making main cuts beginning Aug. 24.

The company, which had been dealing with a $213 million finances deficit going into this fiscal 12 months, mentioned it’ll finally remove 45% of its bus and practice service and lift fares by 21.5% — strikes that SEPTA officers have mentioned may start a “death spiral” on the company.

“There is no reason for any lines to be cut right now. There is no reason for it except they are manufacturing a crisis to try to get what they want,” Ward mentioned.

Senate Minority Leader Jay Costa, D-Forest Hills, referred to as Ward’s feedback “insulting,” noting the primary spherical of cuts will take impact a day earlier than Philadelphia youngsters return to high school and impression commuters throughout a five-­county area that’s house to 4.2 million individuals.

“This is a crisis,” Costa mentioned.

SEPTA didn’t reply to questions.

“There is money just sitting there. Checks could be going out today and none of these cuts would be necessary,” Ward mentioned, alluding to the $1.2 billion proposal within the GOP-controlled Senate, which was shot down by two committees within the Democrat-led House.

It would have devoted greater than $292 million to transit businesses and one other $292 million to roads and bridges this fiscal 12 months and elevated these quantities to $300 million subsequent fiscal 12 months. It would have used about $750 million from the Pennsylvania Public Transit Trust Fund.

Democrats and SEPTA and PennDOT officers argued in opposition to taking cash from the belief fund, which gives important cash for capital tasks reminiscent of changing buses and trains, upgrading rail traces and alerts, and enhancing services. They additionally had been searching for a long-term funding plan as a substitute of the two-year stopgap proposed by GOP senators.

“Two years is not the sustainable solution we were hoping for. We need something that’s going to carry us into the future so we can do all the things that people want us to do to be more efficient and more cost-conscious,” Scott Sauer, normal supervisor of SEPTA, mentioned throughout a committee listening to final week.

The House proposal would have elevated the share of gross sales tax income going to transit businesses, offering greater than $292 million in new annual funding for transit businesses in perpetuity. The invoice additionally would have included cash for freeway tasks and enhancements to smaller, rural roads.

After the invoice handed the House, the Senate didn’t carry it up for a vote.

Republicans expressed considerations about completely dedicating an even bigger share of gross sales tax revenues to transit, leading to much less cash accessible for different applications as lawmakers are nonetheless making an attempt to succeed in a deal on the bigger state finances and tackle a multibillion-dollar structural deficit.

The finances deadlock reached 48 days on Sunday.

So now what?

Both Ward and Costa instructed {that a} supply of long-term funding may come from taxing ability video games which have grow to be ubiquitous at bars, comfort shops, fraternal golf equipment and elsewhere.

Finding a consensus on the right way to regulate and tax the machines has been a part of the continuing finances negotiations. Projected revenues differ broadly, but it surely may generate lots of of thousands and thousands of {dollars} in income for the state.

“We have been talking about that money going to mass transit — that’s what the conversation has been, and to transportation in general. I’m just wondering why it’s not part of the conversation right now,” Ward mentioned. “It makes so much sense to me. The time to be discussing this is now if we’re looking for recurring revenue for mass transit and roads and bridges.”

“We agree with that,” Costa mentioned. “We’ve said, ‘We’re OK with that, let’s move that.’ ”

“(Republicans have) had the ball in their court, but they don’t move these (proposals). They can’t come to a consensus in their own caucus,” Costa mentioned.

“We have a consensus in our caucus,” Costa mentioned of the Democrats. “We stand ready to be able to support a skill-games program that allows for a generation of revenue to pay for transit and to pay for roads and bridges. We just need to act on it, and (Republicans) haven’t been able to put it on the table.”

Costa mentioned lawmakers could must provide you with a stopgap to offer transit funding for six months to a 12 months till cash begins flowing in from a would-be ability video games tax.

“We may need something to bridge that gap. We’ve been looking at (other) gaming funds and at the trust fund, as long as the trust fund would be paid back,” Costa mentioned.

“The top of my list is to get this done,” Ward mentioned. “It’s really to get the entire budget done, and this mass transit issue is part of the entire budget. We have to worry about all of that.”