Southeastern Pennsylvania Transportation Authority (SEPTA) on Sept. 5 proposed fare adjustments, including the elimination of a number of discounts, to help address a $240 million annual budget deficit as federal COVID relief funds run out.
The proposal is slated to generate an additional $14.4 million in annual revenue for the transit agency, which offers bus, subway, trolley, trackless trolley, Regional Rail (commuter rail), ADA paratransit, and Shared Ride services in five counties in the Greater Philadelphia area, plus connections to transit systems in Delaware and New Jersey. Pending approval by the SEPTA Board on Nov. 21, the fare adjustments would go into effect Dec. 1.
SEPTA’s last fare increase was in 2017. Planned fare increases in 2020 were deferred due to the pandemic, the transit agency said.
“The temporary nature of the COVID-19 relief money that Congress had voted to give transit providers for operations during the height of the pandemic is now making itself felt to transit managers and riders, and to the elected officials in the state capitals and elsewhere who help pay the operating expenses for the transit in their states,” Railway Age Contributing Editor David Peter Alan reported this summer in the fifth part of his 12-part series, Coming Soon: Transit’s Fiscal Cliff. “In SEPTA’s case, that agency first noted a problem for the 2023-24 fiscal year that recently ended, as the money started to run out.”
According to Alan, the transit agency in June 2023 “touted efficiency measures and careful spending,” but warned that the “$1.69 billion FY 2024 Operating Budget uses SEPTA’s final installment of federal COVID relief funding that has helped to avoid service cuts and fare increases associated with pandemic-induced revenue losses. The federal COVID relief funding is forecast to be exhausted in April 2024, and SEPTA will face recurring structural deficits exceeding $240 million starting in Fiscal Year 2025. Without additional state funding for SEPTA’s everyday operating expenses, SEPTA will have to fill the budget gap by cutting service and raising fares for customers.”
As part of state budget planning, Pennsylvania Gov. Josh Shapiro in January 2024 proposed $282.8 million in new funding for transit agencies, including $161 million for SEPTA. Gov. Shapiro said in a statement to The Philadelphia Inquirer at that time that “[i]nvesting in and improving our public transit systems is a commonsense way to create good-paying jobs, spur economic development, and help Pennsylvanians reach their destinations safely.”
SEPTA in June 2024 signed off on a $2.6 billion FY 2025 budget proposal comprising a $1.74 billion Operating Budget and a $924 million Capital Budget. The transit agency noted, however, its projection of a $240 million deficit, and that the new budget “assumes passage of Pennsylvania Gov. Josh Shapiro’s statewide transit funding proposal.”
“While the state budget includes a small additional distribution to SEPTA, it is less than one-fourth of what SEPTA originally requested, and the need for a permanent solution grows more urgent by the day,” the transit agency said Sept. 5, 2024, during the announcement of its proposed fare adjustment.
According to the transit agency, its proposal is slated generate an additional $14.4 million in annual revenue. It would bring the Travel Wallet fare on buses, subways, and trolleys to $2.50, which is the same as the cash fare. Free transfers on Transit would remain, and SEPTA would eliminate restrictions on direction of travel for transfers, saying this would introduce “new flexibility” that would allow for more roundtrips on a single fare.
The proposal would also increase most single-trip fares on Regional Rail and align Travel Wallet and Quick Trip pricing, SEPTA said. All daily, weekly, and monthly passes would remain the same price. Additionally, three Zone 2 stations would become Zone 1 stations. Riders with weekly or monthly TransPass+ would have access to Regional Rail services at Overbrook, Wissahickon, and Tulpehocken stations at no additional cost, which SEPTA said would bring the total number of Zone 1 stations to 18. “This change supports the vision of SEPTA’s Reimagining Regional Rail plan to integrate Regional Rail with SEPTA Metro and Bus,” the transit authority said.
“SEPTA also continues to evaluate fiscal measures to reduce budgeted spending, including putting a hold on non-essential employee travel, hiring, and other expenses,” it reported. “The Authority has enacted close to $20 million for Fiscal Year 2025 so far. These efforts build on SEPTA’s Efficiency and Accountability Program, which has already realized $50.2 million in recurring annual revenues and cost savings.”
After four years of offering free parking to help attract riders back to the system, SEPTA said it will also reinstate parking fees with a phased approach beginning Sept. 23. Daily parking rates at SEPTA-owned surface lots will increase to $2 from $1 and to $4 from $2 at the three garages: Frankford Transportation Center, Norristown, and Lansdale. These fees are slated to help offset parking lot maintenance costs.
SEPTA reported that it will hold public hearings regarding the proposed fare adjustments on Oct. 16 at 10 a.m. and 4 p.m. Members of the public may attend the hearings in-person at SEPTA headquarters or remotely via WebEx.
