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Port Authority Approves $350 Million Budget

More Money Could Be On The Way

POSTED: 3:18 pm EDT June 27, 2008
UPDATED: 6:43 pm EDT June 27, 2008

The Port Authority Board of Directors approved a $350 million operating budget for 2009 on Friday.

The move comes as more people are relying on public transportation to escape rising gas prices.

More help could be on the way as the House of Representatives recently approved $1.7 billion for public transportation.

The measure is still awaiting Senate approval, but if passed, it would be the first time federal money would be used for local transit costs.

Port Authority CEO Steve Bland believes the move will aid both public transportation services and riders.

“It will really help the transit systems across the country to be able to contain fares, enhance services and really help American public deal with the high cost of fuel,” Bland said.

Soaring gas prices have forced more people to put the car in park and take the bus to soften the pain at the pump.

"Where we really see it is in our park and ride system,” Bland said. “Frankly, if you're not in by 7 a.m., you're pretty much locked out of a space.”

High gas prices played a big role in the $350 million budget the Port Authority approved for next year.

Prices have jumped from $2.28 per gallon last year to $4.15 this year.

“We hope that we will be able to meet the fuel costs for the second half of 2009,” said the Port Authority’s Guy Mattola.

Mattola pointed to the need of significant savings in a collective bargaining agreement and benefit costs as one way to do that.

The Port Authority’s largest labor union is also playing a role in the budget.

With their contract just days away from expiring, they're being asked to curb costs through healthcare and post-retirement benefits.

The 10-percent drink tax implemented this year is also helping to alleviate costs.

“The good news for riders out of today's budget, there is no expectation that there is a fare increase or service reduction,” Mattola, said.

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