In a meeting held Thursday, Nov. 21, 2024, SEPTA's board approved a 7.5% fare hike that will take effect at the start of next month.
Then, in December, the mass transit provider will hold hearings on a second, more drastic, fare increase -- followed by service cuts -- that would go into effect at the start of the new year.
In discussing the pair of fare hikes that would hit riders back-to-back -- during an announcement after the mass transit provider had avoided a strike from its largest workers union -- SEPTA's Chief Operating Officer Scott Sauer said together the increases would generate about $45 million in new funding.
Not enough to fill the $153 million deficit the company is facing this year, he said.
Get top local stories in Philly delivered to you every morning. Sign up for NBC Philadelphia's News Headlines newsletter.
"We are going to have to take drastic measures in the coming months to keep running as much as we can," Sauer said on Wednesday.
In a meeting scheduled to begin at 3 p.m. on Thursday, Nov. 21, 2024, SEPTA's board is expected to vote on the first rate hike that would increase fares on buses, subways, and trolleys to $2.50, officials said.
Also, this plan would increase fare costs for Regional Rail commuters, as well.
Sauer said that only about 20% of SEPTA's operating revenues come from fares. For the rest, he said, the mass transit provider is "heavily subsidized."
"We want to provide great service," he said. "In order to do that, we need a funding source."
SEPTA hasn't raised fare costs since 2017 and it has been able to continue to provide regular services through utilizing federal COVID relief funding.
Those are now exhausted and SEPTA has been looking at new ways to generate funding -- like bringing back parking fees at twice the original price.
While the vote Thursday focused on the fare increases planned to take effect on Dec. 1, 2024, there will be hearings -- the first of which will be held on Dec. 13, 2024 -- to discuss the fare increase set for the new year along with discussion on service cuts.
Sauer said that there will be discussions through early spring to determine what the service cuts might be and they will likely begin to be implemented in the summer months.
Sign up for our Breaking newsletter to get the most urgent news stories in your inbox.
