SEPTA's request to use nearly $400 million in capital assistance funds from PennDOT to maintain daily operations was greenlighted Monday by Gov. Josh Shapiro.
The funding comes after a Philadelphia Court of Common Pleas judge ordered SEPTA restore regular service and in lieu of a long-term funding solution from the Pennsylvania legislature. Service is estimated to be restored by Sunday, when a fare increase also will take effect on buses, trolleys and subways.
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In a letter to Sauer, released Monday morning, PennDOT Secretary Michael Carroll approved the use of $394 million of capital assistance funding, but recognized that the funding is not a remedy for the agency's $213 million budget shortfall.
"In light of the Pennsylvania Senate's unwillingness to advance legislative proposals during the past two years to provide additional recurring revenue for transit agencies … this request from SEPTA is both predictable and rueful," the letter reads. "I want to again emphasize that the one-time use of SEPTA's capital assistance allocation is not a long-term or sustainable solution to SEPTA's budget crisis."
As a contingency for the funding approval, SEPTA must address its structural challenges and report its progress to PennDOT every 120 days.
On Friday, Sauer requested that PennDOT permit the transit authority to use state funding set aside for its capital projects, calling the proposal a "band-aid" for SEPTA's $213 million budget deficit.
"We have intentionally reviewed all planned capital expenditures, and we do not believe this one-time deferral of capital projects will jeopardize the safety of riders on the system," Sauer wrote in a letter to PennDOT. "These capital dollars will not be available to support critical infrastructure rehabilitation and vehicle replacements when needed. We urge all parties to continue to work toward agreement on a transit funding plan that preserves the service our customers and region deserve."
SEPTA was ordered by the Philadelphia Court of Common Pleas on Thursday to reverse its first round of operational reductions, which eliminated several bus routes and cut transit service by about 20%. The court ruled that the cuts disproportionately impacted low-income riders and put the health of the region's economy in jeopardy. SEPTA previously told the court that it would be able to fully restore service by Sunday at the earliest, and confirmed that a fare increase from $2.50 to $2.90 will still go into effect that day.
"Make no mistake about it, there's risk here — tremendous risk to SEPTA," Sauer said Friday about the SEPTA's request to use capital funds. "… We think this is the best decision we can make at this moment."