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Understanding SEPTA’s Statewide Economic Value Report Highlights

Understanding SEPTA’s Statewide Economic Value Report Highlights. June 2013. WHO WE ARE. Quantitative and Strategic Analysis. Recent Projects. Econsult Solutions, Inc. Economics | Policy | Strategy. Economic Development Real Estate Transportation Public Policy.

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Understanding SEPTA’s Statewide Economic Value Report Highlights

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  1. Understanding SEPTA’s Statewide Economic ValueReport Highlights June 2013

  2. WHO WE ARE Quantitative and Strategic Analysis Recent Projects Econsult Solutions, Inc.Economics | Policy | Strategy • Economic Development • Real Estate • Transportation • Public Policy • The value of open space • Strategic Investment in Chicago Retail Corridors • The Economic Value of SEPTA • Impact of Supermarkets on Urban Land Value

  3. WHAT WE EXAMINED The Economic Case for Investment in SEPTA

  4. 40% OF ECONOMIC OUTPUT, 32% OF POPULATION & 27% OF TRANSPORTATION INVESTMENT What is Southeastern Pennsylvania’s Share of Statewide Transportation Investment?

  5. 2012 INVESTMENT 34% BELOW 2010 PEAK SEPTA CAPTIAL Investment?

  6. DECLINING INVESTMENT ASSOCIATED WITH LOWER SATISFACTION Investment and Customer satisfaction

  7. SEPTA’S RIDERSHIP IS AT A 23-YEAR HIGH HOW HAS SEPTA’S RIDERSHIP CHANGED OVER TIME?

  8. CHANGE ORDER RATES (A MEASURE OF PROJECT COST OVERRUNS) CONTINUE TO DECLINE How Efficiently Has SEPTA Invested Public Funds?

  9. SEPTA’S EFFICIENCIES & RIDERSHIP GROWTH HELP KEEP SUBSIDY COSTS BELOW AVERAGE How Does SEPTA’s Operating Efficiency Compare With Other PA Transit Agencies?

  10. SEPTA’S FARE RECOVERY RATIO IS WITHIN A COMPETITIVE RANGE OF INDUSTRY PEERS How Does SEPTA’s Operating Efficiency Compare With INDUSTRY PEERS? NOTE: THE NATIONAL TRANSIT DATABASE DOES NOT COUNT REIMBURSEMENTS FOR FREE & DISCOUNTED SENIOR CITIZEN TRAVEL IN PENNSYLVANIA AS FARE REVENUE, DEFLATING SEPTA’S FARE RECOVERY RATIO BY APPROXIMATELY FOUR PERCENTAGE POINTS

  11. SEPTA’S CAPITAL FUNDING IS AT A 15-YEAR LOW How has SEPTA’s Capital funding CHANGED OVER TIME?

  12. SEPTA’S CAPITAL FUNDING IS ORDERS OF MAGNITUDE BELOW COMPARABLE AGENCIES How Much Capital Funding Does SEPTA Receive Compared With its Industry Peers?

  13. +$129M PER YEAR TO MAINTAIN BACKLOG; +$452M PER YEAR TO ELIMINATE IT How Much Additional Funding Does SEPTA Need to Achieve a State of Good Repair (SGR)?

  14. STANDERD I-O ANALYISIS EconomiC Impact Methodology

  15. SEPTA SUPPORTS JOBS, TAX REVENUES, AND ECONOMIC PRODUCTIVITY What Does SEPTA Mean to the Region’s Economy?

  16. MEASURING THE GAINS ASSOCIATED WITH TRANSIT INVESTMENT • Lower over all costs of travel by lowering congestion • Time • Parking • Fewer travel fatalities and injuries • Reduced travel related pollution • Agglomeration economies • Productivity is enhanced in dense environments. • Variety of location choices—urban, suburban and exurban • More travel options for households • Lower transit operating costs Economic Value of septa

  17. LOWER INVESTMENT RAISES TRANSIT OPERATING COSTS Investment and Operating Costs

  18. WITHOUT SEPTA DRIVERS AND TRANSIT RIDERS COST INCREASE DRAMATICALLY • Transit Users Net Increase in Cost: $581 million. • Shift to driving: $336 million • Parking: $182 million • Shift to private transit $502 million • Costs are partially offset by savings of $439 million that otherwise would have been spent on SEPTA fares. • Regional Drivers Net Increase in Costs: $1.37 billion. • Value of time lost: $1.19 billion • Parking cost increase: $176 million • Safety Costs from Additional Auto Travel: $134 million • Total Increase in Travel Cost: $2.08 Billion Annually SEPTA and Greater Philadelphia travel cost

  19. Travel Cost Is Like a Tax, But Worse • Reduce the Competitiveness of a Region • No Revenue For Providing Services • Negative Impacts of Increased Travel Cost • Employment • Real Estate Values • Tax Revenues • Safety Impacts Perspective on travel costs

  20. DECIMATION OF THE CITY OF PHILADELPHIA What Are the Long-Term Economic & Fiscal Impacts of Eliminating SEPTA?

  21. LOWER INVESTMENT RAISES TRAVEL COSTS Travel Costs and Transit System Reduction

  22. A MASS MIGRATION FROM CITY, WITH SEVERE IMPACTS ON THE REGION & COMMONWEALTH What Are the Long-Term Economic & Fiscal Impacts of Status Quo Funding Levels?

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