§ 427.6. Restriction on use of funds.

 (a)  With the approval of the Department, operating assistance funds may be used for capital assistance under the following circumstances:

   (1)  The need for the alternative use of these funds is limited to 1 year.

   (2)  The proposed use of operating funds for capital assistance will not result in any of the following:

     (i)   A reduction in service.

     (ii)   An increase in fare levels.

     (iii)   An unbalanced operating budget in the year of the transfer and for 3 succeeding fiscal years.

   (3)  The request for approval of the use of operating funds for capital assistance must be supported by written justification documenting that the required level of funds transferred is needed to fund a capital project that cannot be funded from any other available source of State capital assistance.

   (4)  The justification must demonstrate that the proposed capital project, for which the required operating funds will be used, cannot be deferred until a later year without incurring a significant identified hardship.

 (b)  With the approval of the Department, capital assistance funds may be used for operating assistance under the following circumstances:

   (1)  The need for the alternative use of these funds is limited to 1 year.

   (2)  The proposed use of capital funds for operating assistance is needed to support one or more of the following:

     (i)   To prevent a reduction in service.

     (ii)   To prevent an unreasonable fare increase.

     (iii)   To prevent a projected one-time unbalanced operating budget that is not expected to reoccur in the following and subsequent years.

   (3)  Written justification to support that the proposed one-time use of capital funds for operating assistance will not result in the deferral of any important capital project that could have been funded if the funds were not transferred.

 (c)  Operating funds may not be used to fund depreciation costs associated with capital assets procured using public funds.



No part of the information on this site may be reproduced for profit or sold for profit.

This material has been drawn directly from the official Pennsylvania Code full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.