Gov. Shapiro looks to increase state spending on public transit by $282M

Gov. Josh Shapiro is set to announce, on Monday, that his proposed budget for 2024-2025 will include a 1.75% -- or $282.8 million -- increase in the state's share of public transit funding.

In a statement on the coming announcement, Shapiro's office noted that the proposed increase would invest nearly $1.5 billion into public transit statewide over five years.

It will also mark the first increase in the state's share of public transit funding in over a decade, Shapiro's office claimed.

"Hundreds of thousands of people across our Commonwealth rely on public transit every day to commute to work, go to school, and get to where they need to go – and Pennsylvanians deserve clean, safe, cost-effective ways to travel throughout our cities and towns,” said Shapiro in a statement released Sunday. “That’s true all across our Commonwealth, whether you’re traveling to work in Philadelphia on SEPTA or you’re a student in Pittsburgh using PRT to get to school. Investing in and improving our public transit systems is a commonsense way to create good-paying jobs, spur economic development, and help Pennsylvanians reach their destinations safely. For months, my Administration has worked with local public transit leadership and elected officials to understand their needs and I now call on the General Assembly to join me in making the first significant investment in Pennsylvania's public transit systems in over a decade.”

That includes a major investment in SEPTA — the funding needed to avoid immediate service cuts or fare increases.

As part of this proposal, I’ve insisted SEPTA double down on efforts to address safety and cleanliness. I’m also engaging with the five counties who rely on and…

— Governor Josh Shapiro (@GovernorShapiro) January 28, 2024

SEPTA had recently sounded an alert that the mass transit provider could be headed into a "death spiral" unless it was able to secure additional state funding.

The mass transit provider operates at a loss on an annual basis.

But, it has been able to continue to provide regular services without raising fares -- since 2017 -- through utilizing federal COVID relief funding. However, the mass transit provider is now on its last installment of those funds and they will be exhausted in April.

SEPTA warns of service cuts, fare increases

If no new funding could be secured, SEPTA spokesperson Andrew Busch warned that, by September, riders could be paying more -- with potential fare increases of up to 30% -- and getting less, with the possibility of cuts to 20% of services across all SEPTA options.

"Without a funding solution, we are left with significant service cuts and fare increases," he said in an interview with NBC10 earlier this month. "We hope it doesn't come to that."

There was an initiative on last year's state budget that would have provided an additional $190 million to the mass transit provider by increasing SEPTA's share of state sales tax revenue from it's current level of 4.4% to 6.4%.

But, that move didn't make it into the final budget.

On Sunday, Shapiro's office said over the past few months, the governor has been "working closely with SEPTA, the General Assembly, local leadership, and public transit partners to assess their needs and prepare a serious proposal to address them."

"As part of the discussions around this proposal, the Governor insisted SEPTA address concerns about cleanliness and safety on the system – and he has asked local counties in Southeastern Pennsylvania whose residents benefit from the system to meet this moment with additional support." a statement from the governor's office read.

The governor's office said that Shapiro has been working with SEPTA representatives and officials in the counties where the mass transit provider operates to determine how the counties can contribute to meet the transit system's needs.

Officials in these counties "have entertained a willingness to meet this moment with additional financial support," claims the governor's office.

“Ever since I was a State Representative and County Commissioner in Montgomery County, I have supported SEPTA and the critical services it offers to hundreds of thousands of Pennsylvanians every day. SEPTA has presented plans to address safety and cleanliness throughout their system, and county officials have entertained a willingness to step up to the plate and increase their support – as a result, my Administration is prepared to make a major investment in SEPTA,” said Shapiro.

City officials request state support

Shapiro's announcement comes on the heels of a letter sent to his office on Saturday by Philadelphia Mayor Cherelle Parker and City Council President Kenyatta Johnson that urged the governor to support SEPTA amid its budget concerns.

"It is crucial that the State increase funding via an increase to the allocation of the Sales Tax from 4.4% to 6.4% for public transportation, without increasing the rate of sales tax, to address this deficit," the elected officials wrote, referencing the initiative that did not make it into last year's budget. "As Governor and a former county official, we know that you value SEPTA and appreciate the critical role it plays in meeting the mobility needs of our vibrant and diverse region."

The elected officials' letter also noted that, each day, SEPTA carries about 750,000 people throughout it's "interconnected and unified transit system, covering 2,200 miles of service across five counties."

"Public transportation is critical in ensuring a future that is cleaner, greener, and with equal opportunities for all," the letter read.

SEPTA is 'committed' to addressing safety, cleanliness concerns

Also, on Monday, the CEO and general manager of SEPTA, Leslie S. Richards, in a statement from the governor's office, said that she appreciated Shapiro's efforts to support the mass transit provider -- and that the he has made clear that SEPTA needs to "step up" to address concerns about cleanliness and safety of the system.

“I want to thank Governor Shapiro – who has been proactively engaged with SEPTA and our partners for months in order to construct this strong funding proposal to address our most pressing needs and enable SEPTA to continue serving our communities. The Governor knows how critical public transit is for Southeastern Pennsylvania, and his proposal would deliver the critical funding we need – providing additional support for SEPTA for the first time in over a decade,” Richards said in a statement. “In these discussions, the Governor has also made clear his expectations that we at SEPTA step up to address our community’s serious concerns about cleanliness and safety. We are committed to addressing these concerns so that all SEPTA riders can feel safe as they travel where they need to go. I appreciate the Governor’s hard work of bringing people together to forge a proposal that delivers real solutions – and I look forward to working with the General Assembly and local leaders to get this done.”