Faced with an impending fiscal crisis, SEPTA proposed a budget Thursday that would raise fares by 21.5% on Sept. 1 and significantly cut service across the public transportation system if additional funding is not provided by the state.
The details of SEPTA's proposed $2.6 billion budget were shared Thursday morning at a press conference where officials stressed the transit authority's dire financial outlook.
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"For more than two years, we've been warning that this moment was coming," SEPTA interim General Manager Scott Sauer said.
Beginning Aug. 24, SEPTA would cut service by 20%. The plan would eliminate 32 bus routes and shorten 16 others. Also, service on 13 Regional Rail lines, 63 bus routes and 12 subway and trolley routes would run less frequently. The cuts would end SEPTA's express service to the Sports Complex in South Philadelphia.
If funding is not secured by Jan. 1, service would be cut by another 25%. That means 5 Regional Rail lines, 18 more bus routes and the Broad-Ridge Spur would be eliminated. The remaining Regional Rail lines, subways and trolleys would stop service at 9 p.m.
"All of this would leave our city and region with a SEPTA that is a shadow of itself — less useful for our riders and more expensive with a large fare increase," Sauer said.
The proposed fare hike would bring SEPTA's base fare up to $2.90, which would be the second highest in the country behind New York City's MTA.
The budget proposal is SEPTA's latest attempt to brace for the impact of an annual $213 million budget deficit if the state legislature does not pass Gov. Josh Shapiro's proposed transportation funding plan, which includes $165 million for SEPTA. In November, Shapiro tapped into federal highway funds to provide SEPTA a $153 million stop-gap that prevented a fare increase and service cuts at the start of the year.
SEPTA's financial crunch became magnified during the COVID-19 pandemic, which led to steep declines in ridership across the system and falling revenue. SEPTA now has about 800,000 daily riders — between 85-90% of pre-pandemic levels — but some service frequency already had been curtailed, spokesperson Andrew Busch said.
Without state funding, SEPTA's Regional Rail system would lose the Cynwyd, Chestnut Hill West, Paoli/Thorndale, Trenton and Wilmington/Newark lines in January. All five rail lines run in Amtrak territory, where SEPTA must pay $65 million per year to use the tracks. Sauer said those lines are among SEPTA's busiest, but they would be eliminated to avoid paying the annual fees.
SEPTA also plans to implement a hiring freeze in September and could begin cutting staff by early next year.
SEPTA is legally required to have a balanced budget, and Sauer said fare increases are insufficient to reach that goal because higher costs lead to fewer riders on the system. SEPTA raised its base fare by 7.5% to $2.50 in December — the first increase in seven years — in a move that has since added $14 million in revenue. SEPTA also reinstated parking fees at its Regional Rail lots last year and has invested in a plan to install new fare gates designed to prevent fare evasion at subway stations.
In Harrisburg, Shapiro's transportation proposals have been passed three times by the House but have faced resistance from Republicans in the Senate.
"These cuts would be devastating — but they're completely avoidable," Shapiro said Thursday on X, formerly Twitter.
Republican Senate Majority Leader Joe Pittman called Shapiro's proposed spending increases "unrealistic" because of the state's structural budget shortfall, which the Independent Fiscal Office projects to be be between $4.5 billion and $6 billion for fiscal year 2025-2026. Shapiro's $51.5 billion budget proposal includes a 7.5% increase in spending — roughly $3.6 billion above the last fiscal year.
"The state cannot be left fully footing such a large transit increase," Pittman said. "Given their own struggle with a structural deficit, I believe SEPTA should have an appreciation for our commonwealth's fiscal deficit and come to the table with more modest requests."
Sauer said SEPTA has briefed state legislators on the details of its proposed budget and continues to advocate for a deal to be reached in Harrisburg. Similarly, Pittsburgh Regional Transit is proposing 35% service cuts and a 25-cent fare increase to address its projected $100 million deficit.
On Thursday morning, City Council President Kenyatta Johnson introduced a resolution urging the state legislature to approve Shapiro's plan to prevent "a decline in mobility and economic activity" in the region.
State Rep. Tim Kearney (D-Delaware County) warned that SEPTA's looming cuts will be disastrous for the region. He challenged skeptics of Shapiro's proposal to "drop the bad faith arguments" that overlook the consequences of underfunded transportation systems.
"Our roads will be a nightmare, businesses all over the region will lose workers and face costly business disruptions or closures, property values will decline and local and state tax revenue will be hit," Kearney said.
Transit for all PA, a coalition that advocates for public transportation access and funding, plans to hold a rally outside City Hall at 11 a.m. Friday to push for a resolution that avoids drastic cuts to SEPTA service.
"This would effectively kill public transit in the region, and the ensuing damage to Philly's riders, economy, health care system, road congestion and air quality is incalculable," the group said.
SEPTA will hold the first round of public hearings on its proposed budget May 19 at 11 a.m. and 5 p.m. at its headquarters at 1234 Market St. The second round will take place May 20 at 10 a.m. and 4 p.m.
