SEPTA faces critical funding crisis as budget deficits loom

In a recent meeting of the Pennsylvania House Transportation Committee, SEPTA's board chair, Ken Lawrence, addressed the urgent financial challenges facing the transit agency. After 22 years of balanced budgets, SEPTA is grappling with a $240 million annual budget deficit, exacerbated by the depletion of federal COVID relief funds. Lawrence emphasized the critical need for a sustainable funding solution, highlighting that the state’s recent budget did not fully meet SEPTA's funding requests.

The governor's proposed transit funding plan, which would have increased state operating assistance by 1.75%, was approved by the House but ultimately fell short in the final budget. The plan aimed to provide an additional $282 million annually for all transit systems, with $161 million earmarked specifically for SEPTA. However, the final budget allocated only $46 million for SEPTA, significantly less than what was needed to maintain current service levels.

Lawrence outlined immediate measures SEPTA is implementing to address the funding gap, including a fare increase expected to generate $14 million and cost-saving initiatives projected to save $20 million this fiscal year. He also noted a recent 37% decrease in serious crime on SEPTA services and the hiring of additional transit police to enhance safety.

The board chair warned that without legislative action to secure long-term funding, SEPTA would face severe service cuts and fare increases, which could hinder mobility for residents and impact the region's economy. He stressed the importance of public transportation for the upcoming major events, including the World Cup and the nation’s 250th birthday celebration in 2026.

Lawrence concluded by urging lawmakers to prioritize a sustainable funding plan, stating that the cost of inaction would be detrimental to both the transit system and the broader community. The coming weeks are pivotal for public transportation in Pennsylvania, as SEPTA seeks to avoid a \"death spiral\" of reduced services and increased costs.