(The Center Square) — For years, SEPTA leaders have warned that the Philadelphia transit system was facing a looming budget crisis. Without more action from local or state elected leaders, service cuts or fare increases were on the horizon.
Now, the day of reckoning is at hand, as the agency proposed “fare adjustments” that would raise costs on regional rail and eliminate discounts on buses, subways and trolleys.
SEPTA leaders blamed the state government for not filling a $240 million annual budget deficit.
“The SEPTA Board has worked tirelessly to advocate for transit funding,” SEPTA Board Chair Kenneth Lawrence, Jr. said in a press release. “We are optimistic about an agreement on funding in Harrisburg; however, we need to act now to ensure that SEPTA is best positioned to provide reliable service to the city and region.”
The money crunch isn’t a surprise. In January 2023 transit ridership was down 40% compared to pre-pandemic levels and leaders knew the end of COVID-era federal subsidies would soon run dry, leaving the system in a budget hole.
“This increased reliance on short-term federal subsidies is unsustainable and presents a fundamental fiscal challenge moving forward,” SEPTA CEO Leslie Richards said during a May 2022 Senate Transportation Committee hearing. “Rebuilding ridership is fundamental to SEPTA’s long-term viability and the region’s economic success.”
But that challenge wasn’t resolved. Ideas in the General Assembly, such as proposed legislation by Rep. Ben Waxman, D-Philadelphia, to let municipalities levy local taxes to fund public transit, went nowhere.
SEPTA’s desired changes would kill the travel wallet discount and increase fares from $2.25 to $2.50, equal to the current cash fare and the increase since 2017. But SEPTA would keep free transfers and eliminate restrictions on the direction of travel for transfers, allowing more roundtrips on a single fare.
Fares would also increase for single trips on regional rail, making travel wallet and quick trip prices equal.
Public hearings on the proposed changes will be held on Oct. 16 at 10 a.m. and 4 p.m. online and in person at SEPTA headquarters. If the SEPTA board approves the changes on Nov. 21, higher fares will take effect on Dec.1.
“We worked hard to make sure this fare proposal is equitable,” Richards said. “We know that no one wants to pay more for anything, but we are pulling out all the stops to try to avoid devastating service cuts.”
She also hinted that more could come without a boost from state coffers.
“Without new state transit funding, we will have to consider additional fare increases in the spring,” Richards said.
Gov. Josh Shapiro proposed a $160 million funding increase as part of a $280 million overall increase for public transportation in the state. That, however, was reduced to $80 million total in the budget, of which SEPTA received $51 million.
Most of the funding for the transit system comes from state and federal accounts. Of the $1.38 billion SEPTA receives in subsidies, $1.2 billion comes from the state.
In February, Richards warned that, without more state funding, SEPTA could see fares go up by 31% and service reductions up to 20%.
Local Democrats were not pleased with the announcement and vowed change.
“This fare hike is a direct result of the state’s failure to properly fund transit, and our communities are paying the price,” Rep. Ben Waxman said on X, formerly Twitter. “When we return to Harrisburg later this month, securing transit funding will be a top priority. We can’t afford to wait any longer.”
