Capital Area Transit considering cost cutting measures to address financial woes – ABC27

HARRISBURG, Pa. (WHTM) – Capital Area Transit is operating under financial deficit of $ 1.2million.  Executive Director Richard Farr was brought in a year ago to help turn things around.  

Farr says the deficit will increase, if they don’t take the necessary steps to address the problem. “We are working through that process now, said Farr, “We are using a line of credit for cash flow.”

CAT receives state and federal funding in addition to money from the Dauphin and Cumberland counties.  

The company generates revenue from more than two million rides each year, but Farr says the 
current model does not keep CAT out of the red, so they have to take an aggressive look at cutting costs.

“We are looking at internal actions that we can take for cost savings,”said Farr, “That includes operational effectiveness and not replacing staff when they leave, and so we think we are making inroads In reducing the deficit.”

Farr says the Board of Directors has already authorized a service reduction of up to 20%. Farr says that they will also look at more options during union contract negotiations, but no final decisions will take place until public meetings are held, to get input from customers and the community.

Source link


Loading ....

Leave a Reply

Your email address will not be published. Required fields are marked *