Philadelphia leaders, SEPTA calls on state to help with transit agency's budget shortfall

PHILADELPHIA (WPVI) -- City Council President Kenyatta Johnson on Thursday joined SEPTA leadership and other council members to call on the legislature and Governor Josh Shapiro to help with an agreement on long-term funding for the transit agency.

Johnson says there is a $15 billion surplus in Harrisburg, and some of that should go towards SEPTA. The southeast portion of the state is the largest economic generator for Pennsylvania.

Specifically, he says they need $161 million.

Shapiro proposed a plan that would generate an additional $282 million per year for all transit systems, including $161 million for SEPTA.

The legislature did not take that up in July.

"A permanent funding solution is critical to ensure the sustainability for SEPTA services for the Delaware Valley," said Johnson.

"If the state doesn't help, we're going to have to raise fares, cut service and that's likely going to become a death spiral for the agency," said SEPTA Chairman Ken Lawrence.

SEPTA is facing a $240 million deficit after COVID relief funds have expired.

A one-time infusion of $46.2 million from the state is temporary -- they need a long-term fix. Recently, SEPTA proposed changes including a 7.5% fare increase.

"We will have a vote to eliminate the discount that will increase another $14 million. Beginning this month, we will start charging parking at all Regional Rail lines," said Lawrence.

Shapiro says he is in talks with Senate leadership and spoke about a plan Majority Leader Senator Joe Pittman had discussed.

"I consider funding SEPTA and mass transit to be a significant need and a priority, that's why I put it in my budget," said Shapiro at another event in Philadelphia Thursday.

"Leader Pittman made clear that he is open to finding mass transit across the state together with roads and bridges from using dollars that come from regulating and taxing skill games. He married those concepts together," said Shapiro.

On Thursday, Senator Pittman said the following:

"Providing SEPTA with an additional $80 million in the current state budget was a substantial one-time investment supported by our Senate Republican Caucus. While we continue to hear about the need for more state funding for mass transit, our commonwealth does not have endless resources. It is incumbent upon Democrats to clearly place a significant level of priority on this matter, should that be their desire."

Last week, when SEPTA announced proposed fare increases Pittman, released this statement :

"I have made it clear that any transit discussion at the state level cannot occur without consideration of transportation infrastructure investment. We have never addressed transit or infrastructure without the other and the harsh reality is that if we're going to deal with both issues, we need a new revenue stream which will not place additional pressure on the General Fund.

Public safety of SEPTA users and staff remains a top concern of our caucus as well. Much of the information released today raises more questions than answers. I look forward to a better understanding of SEPTA's planned rate changes and ways they look to further address safety concerns at their planned hearings."