What to know about Philadelphia's approaching transit crisis
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Illustration: Brendan Lynch/Axios
State lawmakers are on the clock to fix Philadelphia's transportation system by plugging its massive budget gap.
Why it matters: SEPTA could begin proposing fare increases in early fall if talks fall apart to close a $187 million deficit by June 2025.
The big picture: SEPTA is facing potential cutbacks ahead of 2026, when a crush of tourists will descend on the city for the FIFA World Cup, MLB All-Star Game and the nation's 250th anniversary.
State of play: Talks between state lawmakers and SEPTA are expected to pick up in late September when the legislature reconvenes, SEPTA spokesperson Andrew Busch tells Axios.
- Busch says SEPTA's goal for the talks is "getting a permanent solution in place" to address the agency's long-term annual deficits.
By the numbers: Earlier this year, SEPTA projected a $240 million shortfall.
- But the transit agency reduced the deficit slightly after securing $53 million from state and local sources.
- Yes, but: That's far less than the $161 million that Gov. Josh Shapiro proposed would have staved off agency cuts for this budget year, which runs through June 2025.
Between the lines: SEPTA's deficit is fueled by the end of federal COVID relief funding along with a drop in ridership post-pandemic.
- As of last June, bus ridership has rebounded to 86% of pre-pandemic levels, while metro is lagging at 67% and Regional Rail at66%.
What they're saying: "That structural deficit is not going anywhere without additional help," Busch says.
Inside the room: Should funding remain flat, the transportation agency is considering fare increases, service cuts of up to 20% and hiring freezes for some positions, like administrative posts.
But Busch warned that cuts aren't long-term solutions, and potentially wouldn't close its annual budget deficit in the future.
What we're watching: State Rep. Ed Neilson (D-174), who heads the transportation committee in the House, tells Axios he plans on kick-starting a series of legislative hearings in the coming weeks to focus on more transit funding across Pennsylvania, including SEPTA.
- "This is a problem that has to get addressed," he says. "We really need to get this done."