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Effective Monday, March 16, 2020 and until further notice, Econsult Solutions is having staff members work from home. This form of “social distancing” has been implemented with the safety of our staff and the community at large in mind. We have instituted all necessary remote-working features and remain open for business, hard at work on current engagements and eager to hear how we can support your needs. 

These are extraordinary times. The global pandemic has reached every aspect of every life in every corner of the world. More than ever, ESI stands ready to apply economics, strategy, and insight to help you move forward. Be on the lookout for additional content on our blog, Present Value. Together we will emerge stronger and wiser. 

The Statewide Economic Value of SEPTA

Despite achieving its highest ridership levels in 23 years, SEPTA is confronted with a serious funding shortfall, especially for capital funding required to maintain and improve the system. In 2013, SEPTA hired Econsult Solutions, Inc. (ESI) and Economy League to reexamine SEPTA’s role in the Commonwealth’s economy and analyze the value of expanded Commonwealth investment in SEPTA.

For the purpose the analysis, ESI conducted five sets of analyses:

  • The extent to which the five counties of southeastern Pennsylvania contribute to Pennsylvania’s transportation-related revenues, and are the beneficiary of transportation-related expenditures;
  • The extent to which SEPTA has been a good steward of public funds;
  • The extent to which the performance of SEPTA operations compares to Commonwealth agencies and industry peers;
  • The economic and fiscal impacts of SEPTA on the five-county region and Commonwealth; and
  • The possible long-term consequences of inadequate, status quo funding levels on the five-county region and Commonwealth.

ESI found that the economic value of the Southeastern Pennsylvania Transportation Authority (SEPTA) is significant, both in terms of direct jobs and taxes paid to the Commonwealth of Pennsylvania for all transit-related spending and regarding its catalytic effect on the overall economic output of the region and Commonwealth. Key findings include:

  • 40% of the state’s economic output stems from the five-county area and relies heavily on SEPTA service;
  • 26,000 jobs in the Commonwealth continue to bring additional tax revenue of approximately $62.5 million to the Commonwealth of Pennsylvania annually; and
  • SEPTA is generally underfunded and, despite punctual infusions of funds over the last seven years, has a significant backlog of capital needs preventing it from reaching a state of good repair (SGR).

 

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