Parking agency cuts yield results

In recent years, the Philadelphia Parking Authority has been seen by many as one of the region's most glaring examples of patronage-fueled bloat and inefficiency.

Through cutbacks and limited payroll growth, the agency has significantly improved its bottom line and is on track to transfer $31.1 million to the city's general fund and $600,000 to the School District of Philadelphia.

That represents a 17 percent increase over last year's transfer, and 54 percent more than the authority contributed in 2007. Recent increases in parking-meter and parking-ticket rates are partly credited, but the impact of those hikes on the authority's current fiscal year, which ends March 30, is limited.

"The Philadelphia Parking Authority is doing its best to reduce costs and maximize collection so the city and school district can get as much money as possible in these hard times," Executive Director Vincent Fenerty said in an interview. "The city has asked us to minimize our expenses, which we've been doing for 16 months now. Our belt is very tight now."

In 2007 and 2008, The Inquirer documented the authority's high executive salaries, explosive payroll growth, worker-compensation abuse, heavy use of expensive consultants, and other inefficiencies. In the wake of those and other reports, the state-run agency cut back.

Fenerty cut executive salaries 6 percent, and the cuts have not been restored. The authority canceled some of its consulting contracts, took away the authority-issued vehicles of some employees, and cut its staff of 1,020 by 38 employees. Total payroll costs rose, but only modestly: from $41.6 million to $42.4 million.

Still, given the authority's history and its reputation as a patronage haven, some critics suggest it still has a long way to go.

"I wonder if things have truly changed, or whether things have changed just enough to make the agency politically palatable for the people responsible for holding this agency accountable," said Helen Gym of Parents United for Public Education, which led a campaign in 2007 to get the authority to contribute more to the schools.

Although many Philadelphians see the Parking Authority as part of city government, since 2001 it has been run by an independent board whose members are appointed by the governor and legislature.

In late 2007, when the authority was in the headlines, Gov. Rendell called for a comprehensive performance audit. That audit, which is being conducted by the City Controller's Office, has not been finished, and its scope does not appear to be as broad as Rendell called for.

Although the Nutter administration has no direct control over the authority, it says it is pressuring the agency to continue cutting costs.

"The Parking Authority has not been expanding, and that's good. If anything, they are going to shrink a little further," said Deputy Mayor for Transportation Rina Cutler. "We are awaiting their new budget, and we will go over it with a fine-tooth comb."

The city budget benefits when the authority cuts costs without reducing its collections of meter fees and tickets and other fines. By state law, the authority transfers the profit from its on-street parking-enforcement division to the city and the schools. Until recently, that division's expenses were so high that the city and schools routinely received far less than they expected.

The split between the city and the schools changes year to year and is set by a legislative formula.

Next fiscal year - when the authority will have the benefit of recently increased parking-meter rates and violation fines - the agency contribution is budgeted to be much higher: a total of $46 million, including $9 million for the school district.