Port Authority Could Shut Down; Dan Onorato Holding Back Funds

Allegheny County Chief Executive Wants To Start Contract Negotiations

POSTED: 6:29 am EDT October 8, 2008
UPDATED: 5:04 pm EDT October 8, 2008

PITTSBURGH -- The Port Authority of Allegheny County is facing a financial crisis, and the mass transit agency could be just weeks away from going broke, according to a report by WTAE Channel 4's news exchange partner, the Pittsburgh Tribune-Review.

County Executive Dan Onorato told the Trib that if things don't change, the Port Authority will be forced to shut down by Dec. 1.

More than 100,000 commuters who use bus and light-rail trolley service would be affected.

In January, two new taxes on poured alcoholic drinks and rental cars went into effect. Money generated by the taxes is earmarked for the county's annual subsidy of the Port Authority.

Onorato is withholding the $27 million subsidy -- which also triggers the release of a $183 million state subsidy -- to force a new round of contract negotiations between Port Authority management and union representatives.

According to Onorato, the problem is that union drivers, mechanics and clerks with Amalgamated Transit Union Local 85 are still working under the terms of their previous contract -- a deal which he said is no longer affordable.

The old contract expired in June. Negotiations for a new agreement have stalled, but Onorato said he won't ask Gov. Ed Rendell to get involved.

"I've already told the governor that if he gets that call ... he won't be coming in. He's not going to be involved this time," Onorato told the Trib.

Onorato said the authority needs to solve its long-running financial problems for good, instead of a temporary fix.

"The problem is the legacy costs. The contracture is out of line, it's bankrupting the port authority. We need to get in line with what other transit agencies are doing," Onorato said.

The end of public transit service would not affect elderly and disabled riders, who would continue to have transit service through the Access program.

Also, construction of the $435 million North Shore Connector would continue because it isn't tied to the Port Authority's labor contract. The project is also being funded by federal transit money.

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