The wheels on the bus still go ’round and ’round.

The University renewed its contract with… The wheels on the bus still go ’round and ’round.

The University renewed its contract with Port Authority in late June, securing another three years of transit service for students and faculty who show valid Pitt ID cards.

“We’re happy to have an agreement with Port Authority,” said John Fedele, a spokesperson for the University. “It’s easier and more convenient for our faculty and students to enjoy the benefits of our city. After all, the city is our campus.”

The renewed contract will come at a greater cost. According to Bob Grove, spokesman for Port Authority, the University must pay an increased fee for the unlimited service.

“Nothing has changed about the deal, with the exception of the payments,” Grove said.

Last year, the University paid $2.9 million for the contract. This amount will increase over the next three years, beginning with the 2004-05 year. The University is responsible for a $3.066 million payment in the first year of the contract, an increase of approximately 6 percent. Future years of the contract will bring 5 percent increases, with the University paying $3.219 and $3.38 million in the second and third years, respectively.

Despite the 5 percent increase, there is no planned increase in the student transportation fee, Fedele said. Based on Pitt ridership, the University paid approximately 52 cents per ride for the duration of the last contract.

The average fare for commuters in Allegheny County was $1.18, according to Grove.

“We’re trying to move the Pitt deal closer to what would be the average fare, system-wide,” he said.

A full-time student pays $150 for the security, safety and transportation fee each year.

The program, which has been in place since August of 1998, began with the University paying about 30 cents per ride. By reducing the difference between Pitt’s fares and the rest of Allegheny County, Port Authority officials hope to help alleviate budget problems.

However, Pitt students are still on the winning end of this deal. According to Port Authority spokesperson Judi McNeil, the University will now pay about 55 cents per ride. Without the deal, students would be facing normal fares of at least $1.75 per ride. Pitt affiliates make up a small chunk of the Allegheny County transit system, taking approximately 5 million of the more than 68 million trips Port Authority provides each year. Despite the popularity of the system countywide, it still faces numerous financial problems.

In June 2003, Port Authority Transit found itself looking at a projected $19 million deficit for the 2003-04 fiscal year. Patrons stormed public hearings, protesting proposed fare raises and potential schedule cuts. Faced with the possibility of cutting all service on Sundays, reducing the Saturday schedule and eliminating weekday service after 9 p.m., Port Authority appealed to the state government.

Legislation performed a miracle, according to Grove. The state allotted a $10 million flex of federal funds and restored the $5 million operating subsidy it had cut.

One year later, the transit system is ending its year with a balanced budget, but it faces a $30 million deficit for the 2004-05 fiscal year.

“The problem is that [the] $10 million was a one-time thing [and is] not available to us this year,” Grove said. “We cut another $5 million internally.”

“We don’t have anything left to cut,” he added.

While fare increases and service cuts were part of the initial plan to combat the deficit, Port Authority is now looking back to the state government for assistance.

A new bill on the floors of the Senate and House would provide approximately $280 million to public transit systems across the state.

“This bill can provide what is needed for not only Port Authority, but transit throughout the state,” said Grove. “We’ve got good bipartisan support on this.”

A cap limits the percentage of tax revenue that can be allotted to transit programs throughout the state. Senate Bill 1169 is designed to increase the percentage allotted for transit, allowing transit systems to gain more revenue without a tax increase. Under current statutes, public transportation systems are allotted $75 million from state sales taxes, to be divided among the more than 75 programs in the state.

Under the new bill, that cap would be removed. Local senators and representatives have shown support for the cause, co-sponsoring the new bill, which, according to Stephen Donahue, co-founder of Save Our Transit, would give advocates something to sink their teeth into.

“This is a statewide problem,” Donahue said. “Every year, we have these operating deficits. Last year, legislation gave us a Band-Aid. Well, this year, the Band-Aids don’t seem likely. This bill can help.”

David Ginns, transportation specialist for the Transportation for Livable Communities Project, projects that about $280 million would be allotted and divided among the various projects, under the new bill. According to the proposed legislation, Port Authority would receive 22.5 percent of those funds, or about $63 million. While not ratified before the legislature adjourned for the summer, the bill is slated to be back on the table when the Senate and House reconvene this fall.

The bill gives Port Authority officials hope they may have more options to reduce the financial crunch.

“Raising fares and cutting services is not something we want to do,” Grove said. “The more [the fares] go up, they probably won’t bring us anymore additional revenue.”

“And service cuts, they would be drastic,” he continued. “They would seriously affect the lives and livelihoods of residents in Allegheny County. That is something we definitely don’t want to do.”