Capital Area Transit Economic Impact Tops $12M in Capital Region

Sept. 27, 2017
According to a financial department economic impact analysis, Capital Area Transit contributed more than $12 million in wages & salaries and goods & services purchased during FY 2016-2017 in CAT’s service area.

According to a financial department economic impact analysis, Capital Area Transit contributed more than $12 million in wages & salaries and goods & services purchased during FY 2016-2017 in CAT’s service area, which includes Cumberland and Dauphin Counties and the city of Harrisburg.  

“CAT contributed more than $6.8 million to the city of Harrisburg economy in the last year,” CAT spokesperson and former COO of the city, Robert Philbin, said.  

Total CAT gross wages and goods and service expenditures in the city of Harrisburg reached $6,825,381 last fiscal year, up about 11 percent from $6,244,150 the previous fiscal year.   

CAT’s overall economic contribution to the capital region reached $12,080,029 this year, an increase of about 13 percent over $11,210,134 in FY 2015-2016.

 CAT Spending Increases in Cumberland County

CAT’s economic impact in Cumberland County also increased from $2,087,479 last year to $2,368,170 this year, up about 13 percent with a return on investment of about $7.73 for every Cumberland County tax dollar spent on CAT service. 

Excluding the city of Harrisburg, Dauphin County received $1,139,359 in CAT salaries and goods and services purchased, for a return on the county’s $364,217 local share contribution of $3.13 per dollar allocated to CAT transit. 

“More than 50 percent of the CAT work force resides in the city of Harrisburg.“ Philbin added. 

“That’s about one hundred families — all of which helps contribute to the financial recovery and stability of the City, and assures quality transit services to its residents. Our people live and work here, and our staff understands the fixed route and paratransit needs of their neighbors.” He said.

Public transit investment has a significant impact on the local economy as well as community and economic development throughout CAT’s service area,” Philbin noted. “This is an important part of the societal benefits associated with public investment in Capital Area Transit.”

Capital Area Transit was incorporated in 1973 when Cumberland County and Dauphin County Commissioners and the City of Harrisburg organized CAT to provide mass transit Fixed-Route and Paratransit shared-ride services, which today conveniently and safely transport about 2 million riders a year in the thousand square mile capital region.  

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