PittGirl

In which I talk about elephants as a viable means of transportation

A recent post of mine over at That's Church, this one about inevitable financial ruin of the Port Authority of Allegheny County, has created quite a bit of comment dialogue, Twitter feedback, and even emails to me personally about the situation.

Having read all of those comments and feedback and emails, I can say one thing for certain -- no one has any idea what the heck is really going on and how it can possibly be fixed.

Seriously.

I have had emails and tweets that say essentially, "The union wanted to make certain cutbacks, but the management rejected them."

I have had emails that said, "The management wanted to make certain cuts, but the union rejected them."

I've read passionate arguments that puts the blame squarely on the shoulders of the union for their demands and I've read equally passionate arguments that puts the blame on the management for their excessive spending.

There are those that blame the State government for not ponying up more money.

There are those that blame the County government for not ponying up the drink tax money.

There are those that look at the $530 million connector (which was originally supposed to cost $350 million) being built under the river and throw up in their mouths a little.

There are those, like me, that wonder if the Port Authority ever counted the change that was sitting around in those barrels in some warehouse somewhere or other. I mean, has PAT ever heard of CoinStar?! One barrel at a time, go get your money, PAT.

I've had comments applauding my opinion, which is that ULTIMATE blame must lie with the management, and I've had name-calling comments and comments claiming I'm using my audience irresponsibly when it comes to political matters.

Regardless, so many fingers pointing all over the darn place, we've started using our toes.

Maybe that's it?

Maybe there is actually a LOT of blame to spread around? Maybe the unions need to realize that they're aggressively negotiating their way out of having jobs? Maybe the bus drivers need to realize that they are bus drivers? Not that there's anything wrong with that. I mean, my child has claimed on many an occasion that he might like to be a bus driver when he grows up, but I hope he doesn't expect to earn six figures as a bus driver, as some of our Port Authority drivers are incredibly doing. Call me crazy, but I don't think a bus driver should be earning more than the Mayor, whose job is much more difficult and much more important.

Somewhere, Luke Ravenstahl just fell out of his chair. True story.

Part of running a business, any business, is managing your payroll costs. My husband is regularly obsessing over his payroll, managing overtime, ensuring his percentages are allowing him to remain afloat. It would appear that the Port Authority has done a miserable job of managing overtime pay and/or absenteeism. I have a hunch it's hard to fire a union employee for absenteeism. Is that the union's fault for asking for such rules or the management's fault for agreeing to them? Did the chicken come first or the egg?

Then you add legacy costs into the equation and you're sinking so fast the fishies are all, "Look at it go!"

End result? A flailing, failing, sinking public transportation system that will soon be unaffordable for the average rider to use.

There are many transportation systems in the country encountering similar problems; but there must be some that are getting it right. Can we learn from them?

I hope for the sake of Pittsburgh, that the unions, the management, and the government all take some blame from the big blame pot and rest it on their own shoulders, realizing that it is in everyone's best interest to fix this problem and fast, because when it comes to the point where public transportation is no longer affordable, something's gotta give.

And something's gotta give soon, or Burghers will all be riding elephants to work. Sure they're cheap, but they're slow as honey and I hear they've got a stink of an exhaust system.

Reader Comments:
Old to new | New to old
Jun 21, 2010 02:58 pm
 Posted by  Ken Zapinski

It's easy to blame "management." But the "management" that got the Port Authority into its current mess is NOT the management in place now. Virtually every decision that triggers complaints (valid or not) -- downtown HQ, river tunnel, labor contracts, management pension -- was made before CEO Steve Bland was brought on board to fix things. And he can only do what the law allows.

Don't like the downtown HQ? It would cost more to break the lease and bring the authority's old North Side building up to code.

Don't like that 10 cents of every $1 the Port Authority receives goes to pay retiree healthcare for which retirees pay virtually nothing? Don't like that the $32 million a year transit retiree healthcare bill is four times larger than Philadelphia's even though that system is three times larger? Too bad. The PA state constitution prohibits you from doing anything about it.

Current "management" was able to get a major concessionary contract from the union in 2008, but it can only address future retirees and future benefits, not those already granted. Again, that pesky constitution thing.

You write: "Part of running a business, any business, is managing your payroll costs." That's exactly what the Port Authority is doing with its current proposal. When 75% of your budget is wages and benefits, the only way to make major cuts is to cut people. And if you don't have bus drivers, you can't operate bus routes. It's similar to a restaurant cutting back its hours if it can't afford to stay open quite as long. The only difference is the Port Authority's cuts make the front page.

No big-city transit agency has done more to improve itself over the past four years than Port Authority (including freezing management's pay.) And that assessment comes from someone Saturday's PG described as "an outspoken critic of the authority's past financial practices."

What does the community want, and what is it willing to pay for?

Ken Zapinski, Allegheny Conference

This has been flagged
Jun 22, 2010 08:19 am
 Posted by  Anonymous

Perhaps an analysis of Westmoreland Transit would be more appropriate. This is an Allegheny County issue.

This has been flagged
Jul 5, 2010 12:14 pm
 Posted by  Bram R

Hi, Ken - Can you summarize quickly what cuts Bland-era management has made throughout its own ranks, incl compensation, benefits, expenses and travel. I know there was a pay "freeze" but that's not the same as a cut or a downsize.

I'm aware that labor and equipment costs dwarf the cost of management, but also believe that an organization's habits and inclinations start with the example set at the top. "I ain't caving in if they're still raking it in." I guess I'm curious about the major concessions also.

Jul 5, 2010 12:20 pm
 Posted by  Bram R

Oh ... and I guess along with "management" I also mean specialty service providers and the amount spent on those functions (in-house and consultant marketing specialists, public relations, graphic artists). I'm not expecting to uncover a gold mine there but it speaks to a culture of thrift or a culture of excess.

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