Southeastern Pennsylvania Transportation Authority (SEPTA) has proposed a new fare increase of 21.5% across all modes and methods of payment starting Jan. 1, 2025, plus service cuts starting later next year to help address a $240 million annual budget deficit as federal COVID relief funds run out.
Public hearings will be held Dec. 13 on the new fare proposal. Hearings were held last month on a separate SEPTA proposal that would raise fares 7.5% starting Dec. 1; the SEPTA Board will vote on it Nov. 21. Combined, the two fare proposals would generate nearly $50 million in new revenue annually, according to SEPTA. That number could be lower, however, due to ridership losses caused by fare hikes and service cuts, it said.
SEPTA expects to announce and hold public hearings on service cuts in early 2025. “While some details of the service reduction plan are still being finalized, it would result in an overall 20% cut in service across all modes,” the transit authority reported. “Dozens of routes would be eliminated, and those that remain would operate with significantly less frequency. These cuts will also force SEPTA to postpone its plans to overhaul the bus network, previously known as Bus Revolution.”
SEPTA noted that it has already announced measures such as hiring freezes for certain administrative positions to help control expenses, and that additional steps will be taken in the coming months to cut costs further.
“For the last two years, we have urged action in Harrisburg [Pa.] so that we could avoid these draconian measures,” said SEPTA Chief Operating Officer Scott Sauer, who will begin serving as interim General Manager when Leslie S. Richards steps down from the position Nov. 29. “We were hopeful a solution would come this fall, but it has not materialized. We now have no choice but to move forward with a proposal for major fare increases and service cuts. This is going to be painful for all of our riders and will have major economic and social impacts on our city, region and the Commonwealth as a whole.”
Like many other transit agencies nation-wide, SEPTA has hit a “fiscal cliff” as a result of the pandemic. According to SEPTA, one-time federal COVID relief funds were used to help cover the everyday expenses of running the system—maintaining service during the pandemic and supporting the post-pandemic recovery—and those funds were exhausted this past spring. That has created a nearly quarter-billion-dollar annual budget deficit in the current fiscal year and beyond.
“SEPTA’s ridership continues to grow every month, as more people return to in-person work,” the transit authority said. “But increased fare revenue cannot cover all of the costs that SEPTA has had to take on over the last few years to enhance cleaning, safety and security for riders and employees. In addition, inflation has resulted in increased costs for fuel, power, supplies and other items that are needed for day-to-day operations, adding to budgetary pressures.”
SEPTA has projected an annual operating budget deficit of at least $240 million annually. In July, it received a one-time infusion of $46 million in additional state support, which combined with $7 million in local match, bridged the budget gap until the fall. “Even with the additional fare revenue and some savings from service and cost-cutting, SEPTA still expects it will have to take more actions to close the budget deficit for the current fiscal year, which ends June 30, 2025,” the transit authority reported.
