SEPTA proposes major fare hikes and cuts in service as it faces budget shortfall
SEPTA officials said Tuesday the agency is facing a $240 million annual deficit.
PHILADELPHIA (WPVI) -- SEPTA says there could be major fare hikes and a dramatic cut in service next year as it approaches what the agency calls a "fiscal cliff."
If the proposals are approved, riders would pay anywhere from an additional $.40 for bus and metro and up to $2.25 more per ride on Regional Rail.
SEPTA released a chart showing how much of an increase is possible:
Meanwhile, SEPTA is proposing a 20% reduction in service in an effort to save money.
"Rail lines will be so infrequent they'll be useless to most of our customers," said SEPTA COO Scott Sauer.
SEPTA officials said Tuesday the agency is facing a $240 million annual deficit.
Pennsylvania's Democratic Governor Josh Shapiro has supported a budget proposal to provide SEPTA $161 million, a spokesperson said Tuesday, adding that it was passed in the Demoractic-controlled state House but has been sent to the Republican-controlled state Senate three times without a vote.
"We were promised a solution by the end of this legislative session. That did not happen," Sauer said.
"SEPTA must take steps to increase the safety and efficiency of the organization before any additional taxpayer dollars are committed," said Senate Majority Leader Joe Pittman. "Additionally, I have made it clear that any transit discussion at the state level cannot occur without consideration of transportation infrastructure investment."
The transit agency has also said the exhaustion of federal COVID relief funds is also contributing to the shortfall.
The proposed fare hikes and service cuts would generate $50 million in new revenue annually, SEPTA said, but that number could be lower if ridership levels drop.
"We increase the fares, we're going to lose riders. That's inevitable," said Sauer.
RELATED: SEPTA contract talks continue as strike looms in Philadelphia
There will be public hearings on the proposed fare hikes and service cuts.
The first one will be on Dec. 13 at the Pennsylvania Convention Center in Philadelphia.
SEPTA encourages riders to get involved and make their voices heard.
More details about the hearing are available here at SEPTA.org.
SEPTA Strike Threat and Leadership Change
All of this comes as SEPTA remains in contract negotiations with TWU Local 234. Union members have authorized a strike, but have not walked off the job as talks continue.
Bus, trolley and subway operators in Philadelphia have been working without a contract since last Thursday.
Wage increases remain a sticking point but SEPTA has said the budget constraints has impacted negotiations.
Meanwhile, SEPTA CEO and General Manager Leslie Richards will be stepping down on Nov. 29.
Sauer will serve as interim general manager until a permanent successor is chosen.
