The state has not offered a sustainable source of funding to meet the transit agency’s $240 million budget gap.
Officials from Philadelphia’s Southeastern Pennsylvania Transportation Authority (SEPTA) are warning that the agency will have to make steep fare hikes and service cuts as it faces a $240 million budget shortfall.
As Joe Brandt reports for CBS News, SEPTA COO Scott Sauer made a dire prediction: “Service cuts and fare increases resulting from fewer riders, lead to more service cuts and more fare increases, resulting in fewer riders. Until ultimately public transit is no longer relevant.”
Even before the pandemic, the agency relied heavily on state, local, and federal subsidies to make up the gap between fare revenue and its operating expenses.
Under the agency’s plan, fares will increase by almost 30 percent in 2025, while service will be cut by 20 percent across the board. SEPTA has already reinstated parking fees at agency-owned lots and eliminated rider discounts.
FULL STORY: How is SEPTA funded? Inside the Philadelphia transit agency's budget – and what's behind the "death spiral"
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