PHILADELPHIA (KYW Newsradio) — SEPTA’s proposed budget for next year holds the line on fares, but warns of a fiscal cliff looming the following year as pandemic relief runs out.
“This is our last budget that will show the federal relief. And people will see why,” SEPTA general manager Leslie Richards told KYW Newsradio.
SEPTA is facing a $240 million deficit in fiscal year 2025. Without additional funding, Richards said, fare hikes and service reductions are likely.
“We can guarantee that, this year, there’s no fare increases, no service cuts — but next year, without significant increases in revenue, we will be discussing fare increases as well as service cuts,” Richards said.
The transit agency has used $1.6 billion in federal COVID relief since 2020 to make up for lost revenue from decreased ridership.
Related
“That 240 [million dollars] does represent progress against the 270 [million dollars] from last year, but there’s just no way to close a deficit that big by the time the federal relief runs out,” said Erik Johanson, SEPTA’s senior director of budgets and transformation.
Overall ridership is currently at 60% of pre-COVID levels, Richards said.
The transit agency‘s $1.7 billion operating budget for Fiscal ’24 includes a few perks to try to increase ridership, including a second free transfer, Richards said. Riders would also be able to use weekly and monthly TransPasses at 24 Regional Rail stations, including all of Zone 1, the Airport Line and stations in Center City. Currently, rail riders must use their fare card’s pay-per-trip Travel Wallet feature.
The budget proposal is nearly 5% larger than the current year’s, mostly due to inflation. Richards said the proposal includes money to fund a new Transport Workers Union contract, which expires in October.
SEPTA plans to hold public hearings on the fiscal year 2024 operating budget on May 8 and 9, and a board vote is scheduled in June. SEPTA will release its capital budget next week.
Related
