Greater Philadelphia is facing a challenge that could derail our entire economic future: Southeastern Pennsylvania Transportation Authority (SEPTA)'s looming fiscal cliff.
You may have seen my recent letter to the editor in the Philadelphia Inquirer on the recently passed Pennsylvania state budget provides SEPTA with $46 million - a mere fraction of the $240 million needed to avoid devastating service cuts and fare hikes that would greatly impact our residents and commuters. Lawmakers decided not to adopt a sensible dedicated funding source that would have supported transit agencies across Pennsylvania. Instead, they opted to allocate one-time dollars for transit, only briefly delaying the Commonwealth’s crisis.
With the announcement of fare increases, we have already been offered a small glimpse into the steps SEPTA must take to close its budget deficit. The proposed fare adjustments would result in an average increase of 7.5%, but they are just a start to the burdens riders will begin to feel due to the inaction of legislators. SEPTA has also been forced to implement a hiring freeze, restrict employee travel, and restore parking fees at many of its stations. For residents and the local businesses they patronize, the consequences will only escalate from here. Without immediate action from our state lawmakers, service cuts, steeper fare increases, and layoffs come next, bringing catastrophic results.
This is an economic emergency, and the business community is calling on our state lawmakers to act decisively this fall to implement a dedicated and adequate funding solution for public transportation.
Public transportation is the backbone of Southeastern Pennsylvania’s economy. While our region represents only 5% of Pennsylvania’s land area, we generate 42% of the economic activity and 38% of the tax revenue the entire Commonwealth relies on each year thanks in no small part to SEPTA’s system. Approximately 700,000 commuters in Greater Philadelphia rely on SEPTA daily, connecting our workforce to job opportunities, bringing customers to our businesses, and ensuring that our community has access to health care and education. Without reliable and affordable transit, Pennsylvania’s ability to attract and retain talent, businesses, and investment is severely compromised.
Moreover, reduced transit service widens economic disparities and hinders our region's progress toward equitable growth. As employers, we recognize that a diverse, accessible workforce is crucial for innovation and competitiveness in the global market.
Our business community is gravely concerned for the future of SEPTA. But we’re not just calling for action – we're actively investing in transit solutions. A prime example is SEPTA's Key Partner Program, which offers all-access fares to all employees of participating employer organizations. To date, over 50 employer partners have enrolled, providing almost 100,000 riders with unlimited access to the SEPTA system. This participation accounts for nearly one-third of SEPTA's revenue, clearly demonstrating the value employers place on investing in both the transit system and their employees' commuting needs.
We cannot afford to let SEPTA enter a death spiral of service cuts, ridership decline, and economic contraction. The consequences would be dire for our region’s residents, bringing decreased property values and job losses that have the power to devastate our communities. This scenario would make our region less competitive and less prosperous, reversing years of economic progress.
As we approach 2026, when the eyes of the world will be on Philadelphia for the celebration of the United States' 250th birthday and major sporting events, we have a unique opportunity to showcase a world-class transit system that supports a thriving, modern economy. Let's not squander this chance.
The choice is clear: invest in our transit system now or pay a much steeper price in lost economic opportunities and diminished quality of life for all Pennsylvanians for years to come. The future of our state’s and region's economy hangs in the balance. Let's choose growth, equity, and prosperity. Let's fund SEPTA and secure a brighter future for our community.
