SEPTA pursues big fare hike, service cuts amid "death spiral"
Add Axios as your preferred source to
see more of our stories on Google.
Photo: Hannah Beier/Bloomberg via Getty Images
SEPTA is pressing forward with more fare hikes and service cuts in 2025 amid its ballooning budget deficit.
Why it matters: The agency is facing the beginning of a "transit death spiral," COO Scott Sauer told reporters Tuesday.
Driving the news: SEPTA announced a new proposal that would hike fares by 21.5% starting Jan. 1, followed by a 20% decline in overall service later next year.
- The agency has yet to finalize service cuts, but it's planning to eliminate dozens of routes across bus, trolley and subway services, all of which will run less often in 2025.
Meanwhile, SEPTA's board will consider a separate 7.5% fare increase next week that would take effect Dec. 1.
What they're saying: "We are managing the decline of SEPTA," Sauer said during the news conference Tuesday.
- He noted the measures won't close SEPTA's approximately $187 million budget deficit this year and could reduce ridership, likely leading to more cutbacks.
Plus: Cuts would also interrupt initiatives like SEPTA's bus system redesign.
How we got here: The transit agency's deficit is fueled by the end of federal COVID relief funding, inflation, and a drop in ridership post-pandemic.
- Pennsylvania legislators balked at Gov. Josh Shapiro's proposal to funnel more money to the transit agency in this year's budget.
- SEPTA's ridership woes have persisted even as the city's workforce and big Center City businesses, like Comcast, have called their employees back to the office.
By the numbers: As of September, bus ridership has rebounded to 80% of pre-pandemic levels, while metro is lagging at 70% and Regional Rail at 61%.
Behind the scenes: Talks between state lawmakers and SEPTA officials over more funding for the transit agency have stalled.
- The state House and Senate wrap up their 2024 sessions this week.
What's ahead: SEPTA is facing a leadership shake-up and the threat of a worker strike.
- The agency's general manager and CEO Leslie S. Richards will step down Nov. 29. Sauer will take over on an interim basis as SEPTA searches for a new leader.
- SEPTA's largest union remains locked in negotiations with the agency over a new contract to avoid a strike that would cripple service in Philly.
What we're hearing: Shapiro, a Democrat, said he would sign a funding increase for SEPTA if the GOP-controlled state Senate approves it, the governor's spokesperson Manuel Bonder tells Axios.
- State Senate Majority Leader Joe Pittman, a Republican, tells Axios that SEPTA must take steps to increase safety and efficiency before the chamber considers any additional taxpayer dollars for the agency.
- Pittman added: "I have made it clear that any transit discussion at the state level cannot occur without consideration of transportation infrastructure investment."
What's next: The agency's board will hold a public hearing on the new fare hikes on Dec. 13 at the Pennsylvania Convention Center.
- A final vote is expected later in December.
Editor's note: This story has been updated to add comment from state Sen. Joe Pittman.