SEPTA Board Approves “Doomsday” Budget

By Sean Jeans-Gail | VP of Gov’t Affairs + Policy

---

The Southeastern Pennsylvania Transportation Authority (SEPTA) Board of Directors announced yesterday it will move forward with deep service reductions and substantial fare increases for passengers as the agency confronts a $213 million budget shortfall that goes into effect July 1, 2025. SEPTA officials say they have exhausted available austerity measures and, unless a legislative fix is passed by the state legislature, must now accommodate the realities imposed by the looming fiscal cliff.

The regional transit agency has already identified dozens of cost-saving actions—including a hiring freeze and administrative expense reductions—to narrow its projected deficit from $240 million to $213 million. However, SEPTA officials say the absence of a long-term funding solution from Pennsylvania lawmakers has left the agency with few remaining options.

“This budget will effectively dismantle SEPTA,” SEPTA General Manager Scott Sauer said during a Thursday board meeting. “Once this dismantlement begins, it will be almost impossible to reverse, and the economic and social impacts will be immediate and long-lasting for all Pennsylvanians, whether they ride SEPTA or not.

SEPTA would introduce the changes in two phases, with phase one hitting August 2024 and phase two in January 2026. In total, fares would rise by more than 20% across all services and methods of payment and, if implemented, would elevate SEPTA’s fares to among the highest in the U.S. Concurrently, the agency will implement sweeping service cuts amounting to a 45% reduction.

According to SEPTA officials, the proposed service changes will eliminate dozens of routes and substantially degrade access to transit, particularly in underserved areas. Some residents stand to lose transit access entirely, while others may face significantly longer travel times.

Absent legislative intervention, the agency warns of far-reaching consequences to regional and state economies. An analysis commissioned by SEPTA projects a $19.9 billion decline in regional household property values, 76,700 job losses, and $6 billion in lost potential earnings. The commonwealth would lose $11.4 billion in tax revenue collections, including a $674 million annual tax revenue loss to the region and Pennsylvania.

Image courtesy SEPTA

The crisis underscores longstanding disparities in transportation funding by mode in Pennsylvania. SEPTA, established to maintain Greater Philadelphia’s transit infrastructure, has historically received between one-half and one-third of the funding allocated to comparable transit agencies. This structural underinvestment has constrained the agency’s ability to modernize aging infrastructure.

Current projections require the deferral of approximately $2 billion in previously programmed projects. This includes partial funding for critical upgrades and the postponement of over a dozen accessibility improvement projects across Metro and Regional Rail stations.

Although SEPTA will continue to push ahead with major capital initiatives such as the Trolley Modernization program and procurement of new Regional Rail vehicles, officials caution that these efforts will deliver limited benefit without adequate operating support to sustain services.

Legislative Action Still Possible

Pennsylvania Governor Josh Shapiro (D) outlined a $300 million transit funding bill to strengthen transit systems across the commonwealth. The bill passed the state House of Representatives earlier this month, while negotiations in the Senate are still underway.

However, action is not guaranteed, with Pennsylvanian state Republicans saying they still view funding for roads and bridges as a top priority.

“Transit systems play an important role in our statewide economy, and their services are vital to many who live and work in certain regions of our commonwealth,” said State Senate Majority Leader Joe Pittman (R-41st). “However, with the state already investing billions of dollars in mass transit annually, asking for nearly $300 million more this year for transit is difficult to reconcile. As discussions surrounding the state budget continue to progress, a key component of the transit discussion is also addressing the transportation infrastructure needs for roads and bridges throughout Pennsylvania.”

Rail Passengers is asking Pennsylvania passengers to call their State Senator and deliver this simple message:

“Please pass a legislative fix to avoid SEPTA’s ‘Doomsday’ budget. Transit is too important to Pennsylvania’s economy to let these systems fail!”

[PA RESIDENTS - CLICK HERE TO TAKE PART IN OUR ACTION ALERT]