District axes TransitChek program
by Samuel Reed III on Jan 13 2012 Posted in Blogger commentary
"Get on the bus"
Thanks to the School District of Philadelphia’s budget cuts and staff reductions teachers like myself and my blog mate Timothy Boyle (we are both avid SEPTA riders) will not be able to benefit from the TransitChek program any longer.
TransitChek is a commuter benefit program that offers pre-tax benefits for workers who use public transit. I received a notice in the mail from the School District Employee Benefit office that the District will no longer participate in the program. With the TransitChek program, workers selected the amount from their paycheck to go toward their commute. That amount was deducted before taxes and vouchers were sent directly from the TransitChek program.
This was a win-win for the District and workers. Workers saved money on taxes, while the District saved money on payroll taxes.
I contacted Paul Billbrough at the employee benefits office to inquire if the District considered other alternatives to maintain the TransitChek benefit. He indicated that staffing reductions made it difficult to continue the program for teachers. However, he noted that employees at the District headquarters would maintain their benefits through a separate transit check debit card program.
When I asked why the TransitChek debit card could not be provided for teachers, Billbrough indicated that the benefit was provided to teachers as part of their Philadelphia Federation of Teachers contract, which does not govern benefits for central administration staff.
I understand that the budget cuts have impacted many facets of the way the District does business. But dropping a eco-friendly program that benefits both workers and the District seems shortsighted.
Most of the 9,000 plus teachers in the District drive to work in their own cars. At my school, there is only one other teacher who commutes to work using SEPTA. Billbrough noted that only around 200 teachers were using the TransitChek program. With less than 5 percent of teachers using TransitChek it is a pretty expendable benefit.
The District and SEPTA could have done more to promote the TransitChek program.
I have participated in the District's TransitChek program for close to two years. Most teachers I told that the program was being cut, had no idea about the benefit in the first place. So few workers participating in the program after two years indicates that the promotion was lacking or ineffective. Then again, maybe the pre-tax savings, the high cost of gas, and improving our eco-foot print is not quite enough to wean folks away from driving cars to work.
With all looming budget woes, I understand why the TransitChek program was put on the chopping block. But if District headquarters' workers can receive transit debit cards, why can’t other District employees “get on the bus"?
Comments (10)
Submitted by Teach (not verified) on Fri, 01/13/2012 - 21:27.
Because teachers are the least respected contingent of the school district and don't deserve the same benefits as a $60,000 secretary at 440.
Submitted by Anonymous (not verified) on Fri, 01/13/2012 - 21:46.
Presupposition failure. I do not own a car and take SEPTA daily. Several other teachers in my building do, as well. None of us used Transit Chek because it is a pain in the butt and doesn't save that much money. I go at the end of each month to the check cashing place on my block and buy a monthly pass with cash.
There are FAR more than 200 teachers commuting via SEPTA. So, this program wasn't all that effective.
Now, I still don't understand why they didn't either roll everyone who uses it into one program (why were there two separate programs doing the same thing to begin with?) or why they decided to cancel something that doesn't cost them any money.
But deciding that 200 Transit Chek users = 200 SEPTA commuters is a massive failure of critical thinking.
Submitted by Ms.Cheng (not verified) on Sun, 01/15/2012 - 08:18.
Because I'm a "stay at home", I've had to find all sorts of things to budget hard on. Consider that Fed taxes are (at least) 15%, State 3%, City (probably you wouldn't be given a break on that) roughly 4%(suburb resident slightly less)... and a monthly pass about $90.00... equates to $90.00x12 months= $1,080.00 x 0.18 (Fed + State) = $194.40 a year... so right, not that much (however 18% is a better return than stocks and bonds even), but helpful to teachers I'm sure who fork out that amount for classroom supplies (btw, there's a Fed tax deduction (not credit) for teachers you can use for this.)
SEPTA won't be losing any commuters, Fed and State will be getting small increase in tax take. I'm a "green" person, and am sorry to hear of this decision. It IS a painless way to get Fed and State support for commuters. Another unwise choice by the PSD.
Submitted by Anonymous (not verified) on Mon, 01/16/2012 - 23:59.
The tax deduction maxes out at way less than I think most SDP teachers spend.
$194 a year isn't very much money. That is about 2-3 hours of an SDP salary, for a year.
Considering how hard SEPTA makes it to use TransitChek, I'd rather pay $194, and so would most of the other transit commuters. Maybe when you have a job to commute to, you'll understand.
Submitted by Ms.Cheng (not verified) on Tue, 01/17/2012 - 08:42.
It's too bad SEPTA makes it so hard/inconvenient: kind of defeats the purpose of the program. If you multiply 200 users with $194, you get $38,800; which would be the Fed and State contribution to mass transit. Yes, seemingly a drop in the bucket, but entire businesses run on these "drops in the bucket". If SEPTA were more savvy, they would promote TransitChek to get more gov't subsidy.
At least teachers should take advantage of the Fed tax deduction on the 1040 form. Spending say, $1000.00 (I've spent nearly this myself as a volunteer without the break) it would give you your rate (again the min is 15 %) and that would be $150 that the Fed gov't would pitch in. Of course teachers shouldn't have to be purchasing these things. I have spent gobs of my time also just to raise a few hundred dollars to help here. I do understand the time $ tradeoff. I have been in the workforce. As an arts person, I've also been in positions where $194 went a long way. It would be an individual's decision.
Submitted by Anonymous (not verified) on Sat, 01/14/2012 - 11:51.
I once used public trpsndit to go to teach snd bought a Septa pass. I did this until i retired. What angered me was the fact that kids exchanged their free tokens for cash or cigarettes at little grocery stores who the sell them to adults ...
Submitted by Timothy Boyle on Sat, 01/14/2012 - 13:13.
Sam actually broke this news to me, not the District or the PFT. I used TransitCheks since 2008. Don't have a car, not planning on getting one anytime soon. I'm not going to say I depended on the program, or that this is the most aggreious decision the SDP has made. It is however disrespectful to not at least tell your workforce you are considering this option and not explain why 440 staffers can keep the benefit.
Submitted by Anonymous (not verified) on Sun, 01/15/2012 - 23:16.
It's another shot at union busting though I agree, it is a small one. Just another technique to separate and conquer. Ackerman did that sort of thing 24/7, of course.
Submitted by Ron Whitehorne on Sat, 01/14/2012 - 13:47.
Thanks for this, Sam. Have shared it on the Transport Workers Union Local 234 Facebook page.
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