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We are in a ‘Death Spiral’ SEPTA Officials Say As Severe Cuts, Fare Hikes Loom

SEPTA Headquarters Credit: Jeff Bohen Lower Bucks Source

SEPTA is proposing an across-the-board 21.5% fare increase starting New Yearโ€™s Day as well as severe service cuts that would take effect next summer in light of federal COVID funding drying up and approved state funding coming in far below what the mass transit company hoped for.

The transportation authority announced its plansย on Tuesday and scheduled a Dec. 13 public hearing on them.

If approved by SEPTAโ€™s board, riders would pay the increase on top of a proposed separate interim average fare increase of 7.5% that the panel is due to consider later this month. If that is passed, it would take effect Dec. 1. If both increases take effect, the single fare cost of riding the city bus and subway would go from $2 to $2.90. SEPTA key fares for rail riders, which now range from $3.75 to $6.50, depending on the zone riders use, would range from $5 to $8.75 on Jan. 1

SEPTA is facing an annual structural budget deficit of $240 million as federal pandemic aid phases out earlier this year.ย  The authority also lost on just under $161 million in state funds since the Republican-controlled state Senate declined to hold a vote on Democratic Gov. Josh Shapiroโ€™s proposal for $283 million in new state aid for public transitย  transit. Lawmakers, instead, approved a one-time payment to the state trust fund for transit systems, of which SEPTA received $46 million, significantly less than the initial proposal.

Credit: Jeff Bohen, Lower Bucks Source

SEPTA officials are calling the proposed service cuts and fare hikes a transportation services death spiral.

“For the last two years, we have urged action in Harrisburg so that we could avoid these draconian measures,โ€ said SEPTA Chief Operating Officer Scott Sauer. โ€œWe 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.โ€

SEPTAโ€™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, officials said.

“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,โ€ Sauer added. โ€œWe cannot confidently say that riders will be able to count on us for these critical daily trips in the future โ€“ 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.โ€

Public hearings on the new fare proposal will be held on Dec. 13 at the Pennsylvania Convention Center. For more details,ย click here.

Credit: Jeff Bohen, Lower Bucks Source

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