This sequel accompanies Case Number 2047.0. Designed for a class in public finance or in transfer, this instance describes the fiscal crisis that, in 2013, loomed over the Southeastern Pennsylvania Transportation Authority (SEPTA), the transit system serving four surrounding counties and Philadelphia. The difficulties were predominantly in the system's long-insufficient capital funding, which funded care, repair, and replacement costs for the aging legacy system, but these issues were serious enough that they were threatening daily operations.
SEPTA had been forced to delay needed reinvestment in the system for so many years that, absent substantial new capital, the SEPTA board and general manager warned they would be made to shrink its system dramatically over the next 10 years, reducing service in the city of Philadelphia and nearly removing suburban commuter rail service. To ground the discussion, the case provides structural and political background alongside the recent fiscal history of both operating and capital funds, about SEPTA, allowing pupils to understand the character of the financing difficulties that had beset the authority. The case also supplies a more general conversation to be supported by enough info on transportation system finance.
Case exhibits comprise demographic and commuting data for the five counties served by SEPTA; fare and subsidy information by way of transportation; fare elasticity by way of transportation; sources of subsidy in both operating and capital budgets; information about the tax burden in Pennsylvania; the proposed consequences of abolishing SEPTA for commuting costs, jobs, and property values; and pros and cons of using different types of state funding to finance transit. A brief 2-page sequel describes what the legislature finally selected as its revenue source, and proponents were finally able to gain legislative approval for additional capital. Case number 2047.1
PUBLICATION DATE: October 07, 2015 PRODUCT #: KS1146-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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