PHILADELPHIA, PA — The Southeastern Pennsylvania Transportation Authority (SEPTA) has canceled the fare hearings previously set for Friday, December 13, 2024. The decision comes after Governor Josh Shapiro announced stop-gap funding aimed at addressing the agency’s budget shortfall for Fiscal Year 2025, which ends on June 30, 2025.
The $153 million allocated to SEPTA under the governor’s direction will cover the agency’s projected operating budget gap for the current fiscal year. This financial assistance has allowed SEPTA to delay a planned 21.5% fare increase that was scheduled to take effect on January 1, 2025.
While SEPTA expressed gratitude for Governor Shapiro’s support of public transportation, the Authority acknowledged that significant financial challenges remain. This temporary funding addresses only the immediate deficit. SEPTA still faces an annual structural budget shortfall of at least $240 million unless a permanent funding solution can be found.
Like many transit systems nationwide, SEPTA has been grappling with a financial crisis caused by the pandemic. Federal COVID relief funds were used to maintain service during the public health emergency and in the recovery period that followed. However, those resources were depleted in the spring of 2024, leaving a critical budget gap for the current fiscal year and beyond.
SEPTA announced it will focus on cost-cutting measures and enhancing operational efficiency while continuing to work with state leaders in Harrisburg on securing a long-term funding strategy. Without additional funding, the agency warned it may have to implement significant fare increases and service cuts starting in the summer of 2025.
For now, the stop-gap funding offers SEPTA the opportunity to prioritize delivering safe, clean, and reliable transit services. The ongoing support from state officials and stakeholders will be critical as the agency navigates this uncertain financial future.
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