PHILADELPHIA (November 12, 2024) – With no prospect of a statewide solution to help fund the everyday operating expenses of public transportation systems, SEPTA today announced a new fare increase proposal that would see rates jump by more than 20% across all modes and methods of payment. Combined with a more affordable fare proposal already being considered for adoption by the SEPTA Board this month, customers would see fares climb by nearly 30% starting Jan. 1, 2025.
This historically high fare increase would be paired with major service cuts, which SEPTA expects to announce and hold public hearings on 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. 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 has already announced measures such as hiring freezes for certain administrative positions to help control expenses, and additional steps will be taken in the coming months to cut costs further.
“For the last two years, we have urged action in Harrisburg so that we could avoid these draconian measures,” said SEPTA Chief Operating Officer Scott Sauer. “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.”
Combined, these two fare proposals would generate nearly $50 million in new revenue annually – although with ridership losses likely due to the combined effect of higher fares and declining service levels, that number could be lower.
Like many other transit agencies across the nation, SEPTA has hit a fiscal cliff as a result of the pandemic. 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. Those funds were exhausted this past spring, creating 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. But increased fare revenue cannot cover all of the costs that the Authority 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 projected an annual operating budget deficit of at least $240 million annually. In July, SEPTA 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.
“SEPTA has had service challenges coming out of the pandemic due to staffing shortages, but we have made great progress and serve a critical role in getting people to work, school, medical appointments, and everywhere in-between,” Sauer added. “We cannot confidently say that riders will be able to count on us for these critical daily trips in the future – let alone look to SEPTA to support major events such as those planned for 2026 or emergency service as we did last year after the I-95 collapse.”
Public hearings on the new fare proposal will be held on Dec. 13 at the Pennsylvania Convention Center. For more details, click here.
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