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Yesterday, Pennsylvania Gov. Edward Rendell vetoed House Bill 2664, which would provide stop-gap funding in fiscal-year 2005 for the state’s smaller transit agencies.

The governor based his decision in part on a letter he received in late November from the Pennsylvania Public Transportation Association stating the bill would harm larger agencies by reallocating resources to include new systems.

HB 2664 "destabilizes the financial condition of existing systems and fails to remedy their current financial crises [and] the long-term implications of the bill outweigh the short-term benefits," the letter states.

However, the state administration is trying to find another way to provide additional FY2005 funds to all state transit providers — new, dependable funding sources.

Southeastern Pennsylvania Transportation Authority and the Port Authority of Allegheny County are facing multi-million-dollar FY2005 budget deficits and have proposed cutting service, eliminating jobs and raising fares.