SEPTA holds public hearings on proposed 2026 budget

Published in Automotive and Transportation on Sunday, August 3rd 2025 at 15:11 GMT by WFMZ-TV
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SEPTA held its first in a series of public hearings on its proposed budget for 2026, which includes service cuts and fare increases.

SEPTA Hosts Public Hearings on Proposed Fiscal Year 2026 Budget Amid Financial Challenges

In a move to address mounting financial pressures, the Southeastern Pennsylvania Transportation Authority (SEPTA) has initiated a series of public hearings to gather input on its proposed operating budget for Fiscal Year 2026. The hearings, which began this week, provide an opportunity for riders, stakeholders, and community members to voice their opinions on a budget that grapples with significant deficits, potential fare adjustments, and service modifications. SEPTA, which serves millions of passengers across Philadelphia and its surrounding counties, is facing a fiscal landscape complicated by lingering effects of the COVID-19 pandemic, fluctuating ridership levels, and inadequate state funding. This proposed budget underscores the agency's efforts to balance operational sustainability with the need to maintain affordable and reliable public transit in one of the nation's largest metropolitan areas.

The proposed FY 2026 budget outlines a total operating expenditure of approximately $1.7 billion, reflecting a modest increase from previous years driven by rising costs in labor, fuel, and maintenance. However, SEPTA officials have highlighted a projected operating deficit of around $240 million, a gap that has persisted despite gradual recoveries in passenger numbers. To bridge this shortfall, the budget includes controversial proposals such as fare increases across various services, including buses, trolleys, subways, and regional rail lines. For instance, base fares for single rides could rise by up to 7.5%, while monthly passes might see adjustments ranging from $5 to $20 depending on the zone. These hikes are intended to generate an additional $50 million in revenue, but they have sparked concerns among low-income riders and advocacy groups who argue that such measures could exacerbate inequities in access to transportation.

Beyond fare changes, the budget proposal incorporates targeted service enhancements and cuts to optimize efficiency. SEPTA plans to invest in modernizing its fleet, including the acquisition of new electric buses to align with environmental goals and reduce emissions in line with Pennsylvania's climate initiatives. This includes allocating funds for infrastructure upgrades, such as track repairs on the Regional Rail system and accessibility improvements at key stations to comply with the Americans with Disabilities Act. On the flip side, to control costs, the agency is considering reductions in off-peak service frequencies on certain routes, particularly those with lower ridership, and potential eliminations of underutilized bus lines. These adjustments aim to save an estimated $30 million annually but could impact commuters in suburban areas who rely on these connections for work, education, and healthcare access.

The public hearings are a critical component of SEPTA's budgeting process, mandated by state regulations to ensure transparency and community involvement. The first hearing took place virtually, allowing participants from across the five-county service area—Philadelphia, Bucks, Chester, Delaware, and Montgomery—to join via video conference or phone. Subsequent in-person sessions are scheduled at various locations, including SEPTA's headquarters in Center City Philadelphia and community centers in outlying counties. For example, a hearing in Norristown targets Montgomery County residents, while another in Chester focuses on Delaware County. Attendees can submit written testimony or speak directly, with each speaker allotted a few minutes to share their views. SEPTA has also made the full budget proposal available online, complete with detailed breakdowns of revenue sources, expenditure categories, and long-term financial projections, encouraging informed participation.

During the initial hearing, a diverse array of voices emerged, reflecting the broad spectrum of SEPTA's user base. Riders expressed frustration over the proposed fare increases, with one Philadelphia resident highlighting how even small hikes could strain household budgets amid rising inflation and housing costs. "Public transit should be a right, not a luxury," she stated, echoing sentiments from transit advocacy groups like the Delaware Valley Association of Rail Passengers. These organizations have called for alternative solutions, such as increased state subsidies or dedicated funding streams from Pennsylvania's legislature, rather than placing the burden on passengers. On the other hand, some business leaders supported the budget's focus on reliability, arguing that a stable SEPTA system is essential for economic recovery in the region. A representative from the Greater Philadelphia Chamber of Commerce noted that disruptions in transit could hinder workforce mobility, particularly as companies encourage returns to office-based work post-pandemic.

SEPTA's leadership, including General Manager and CEO Leslie S. Richards, has defended the budget as a necessary step toward fiscal responsibility. In her opening remarks at the hearings, Richards emphasized the agency's progress in ridership recovery, which has climbed to about 75% of pre-pandemic levels, but stressed that without additional funding, tough choices are inevitable. "We're committed to listening to our riders and incorporating their feedback," she said, pointing to past instances where public input led to modifications, such as retaining certain bus routes or adjusting fare structures. Richards also highlighted external factors contributing to the deficit, including the exhaustion of federal COVID-19 relief funds that had temporarily buoyed SEPTA's finances. Without renewed federal or state support, the agency warns of more severe measures in future years, potentially including deeper service cuts that could affect thousands of daily commuters.

The budget's context is deeply intertwined with broader regional and national issues. Pennsylvania's public transportation funding has long been a point of contention, with SEPTA receiving a smaller share of state resources compared to systems in New York or Chicago. Advocates point to the need for a more equitable funding model, perhaps through increased allocations from the state's motor vehicle sales tax or lottery proceeds, which currently underfund transit relative to highways. Environmentally, SEPTA's push toward electrification aligns with goals to reduce greenhouse gas emissions, supporting Philadelphia's ambition to become carbon-neutral by 2050. However, critics argue that service reductions could inadvertently increase car dependency, leading to higher traffic congestion and pollution in an already strained urban environment.

Public transit plays a pivotal role in the socioeconomic fabric of southeastern Pennsylvania, serving as a lifeline for essential workers, students, and seniors. For many in underserved communities, SEPTA is the primary means of mobility, connecting them to jobs in Center City from neighborhoods in North Philadelphia or suburbs like Upper Darby. The proposed budget's implications extend to equity concerns, as fare hikes disproportionately affect minority and low-income populations who make up a significant portion of ridership. Data from SEPTA's own reports indicate that over 40% of riders earn less than $25,000 annually, making affordability a key issue. Advocacy efforts, including petitions and social media campaigns, have mobilized to urge lawmakers to intervene, with calls for Governor Josh Shapiro to prioritize transit in the upcoming state budget.

As the hearings continue over the next few weeks, SEPTA plans to compile all feedback and present a revised budget to its board for approval later this year. The final budget must be submitted to the Pennsylvania Department of Transportation by a specified deadline, after which implementation would begin in July 2025. This process highlights the democratic aspect of public budgeting, where community input can shape outcomes. For riders concerned about the proposals, options to engage include attending hearings, submitting comments via email, or participating in virtual town halls organized by local councils.

In summary, SEPTA's FY 2026 budget proposal represents a delicate balancing act between financial necessity and public service obligations. While it seeks to address immediate deficits through fare adjustments and efficiency measures, it also invests in future-proofing the system through modernization. The ongoing hearings underscore the importance of public dialogue in transit planning, potentially influencing not just this budget but the long-term viability of public transportation in the region. As southeastern Pennsylvania navigates economic recovery, the decisions made here will have lasting impacts on mobility, equity, and sustainability for generations to come.

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SEPTA Hosts Public Hearings on Proposed Fiscal Year 2026 Budget Amid Financial Challenges