QUOTE (Lancaster Online @ Jan 7 2009, 11:13 AM)
Facing a possible $380,000 deficit for the fiscal year ending in June, due to dwindling corporate sponsorships and falling box office revenues, the Fulton is slashing its budget and laying off four full-time employees from its 30-member staff.
The proposed streetcars in downtown Lancaster as currently would depend completely on corporate sponsorship to make up a half-million dollars or more every year in operating deficits, in an attempt to avoid the controversy that would be caused if Lancaster City taxpayers would be expected to pay the bill.
What would happen to the streetcars when their corporate sponsorships would drop below the amount needed to keep them running?
If frequency of service would be cut back, it would reduce operating revenue, possibly requiring even more corporate contributions to make up for fixed costs. This cannot make sense.
Does anyone believe for one second that the promoters of the streetcar system would allow it to be shut down for lack of corporate contributions?
Neither the State nor the Federal government will subsidize operating losses of an extremely short-line limited-purpose streetcar like the one proposed for downtown Lancaster. Otherwise, the system might have been built three years ago, when grant money for construction was much easier to obtain than it is now.
Since the proposed streetcar system would be entirely within the Lancaster City limits, it would fall on Lancaster City taxpayers to keep the streetcars running. Yet Lancaster City residents already pay the highest taxes in all of Lancaster County.
Brace yourselves...