Designed for a class in public finance or in transport, this case 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 issues were mainly in the system's long-insufficient capital funding, which funded repair, care, and replacement costs for the aging legacy system, but these issues were acute enough that day to day operations were threatening. SEPTA had been forced to delay much needed reinvestment in the system for so many years that, due to absence of significant new funding, the SEPTA board and general manager warned that they would be forced 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, enabling pupils to understand the essence of the funding difficulties that had beset the authority. The instance also supplies enough information on transportation system finance to support a general conversation. A simple 2-page sequel describes what the legislature finally chose as its revenue source, and proponents were eventually able to gain legislative approval for additional capital. Case number 2047.0
PUBLICATION DATE: October 07, 2015 PRODUCT #: KS1145-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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