A ‘transit death spiral’– that’s what SEPTA COO, Scott Sauer called it. SEPTA held a press conference Tuesday to address ongoing issues, including its financial woes and possible strike. To offset its budgeting deficit, SEPTA is proposing a historically high fare increase for all SEPTA routes, as well as service cuts.
SEPTA fare increase
Financial woes for SEPTA is nothing new, but with an impending strike and a $240 million budget deficit, the public transit provider is facing a crisis.
In a meeting earlier this week, SEPTA proposed historically high fare increases as well as “major service cuts”. Specifically, fares would increase by 30% and services would be reduced by 20%. In a statement released November 12th, 2024, SEPTA officials said that with “no prospect of a statewide solution to help fund the everyday operating expenses of a public transportation system,” the proposal was necessary.
SEPTA’s Chief Operating Officer Scott Sauer said at Tuesday’s conference, “this is painful and it’s going to be painful for our customers.”
Indeed, it is. Beginning January 1st, 2025, fares will increase by approximately 30%.
Earlier this fall, SEPTA already proposed eliminating rider discounts. Beginning December 1st, 2024 this elimination will go in to place, accounting for 7.5% fare increase. Additionally, a 21.5% fare increase was proposed at Tuesday’s meeting.
This means all SEPTA bus and metro fares would increase to $2.90. Regional Rail fares would also increase to $5 per ride in zone 1, $6.50 per ride in zone 2, $7.75 per ride in zone 3 and $8.75 per ride in zone 4.
Lastly, the budget crisis would also force a reduction in services up to 20%.
A ‘transit death spiral’
SEPTA officials noted even with the fare increase and service reductions, this would still not be enough to cover the entire deficit, however it should be enough to get them through the fiscal year.
Moreover, SEPTA leaders acknowledge the negative impact this could have on ridership and the mass transit company as a whole.
“With major service cuts and fare increases, this is the beginning of what we’ve been saying is the ‘transit death spiral,'”SEPTA Chief Operating Officer Scott Sauer said. “Service cuts and fare increases resulting from fewer riders, lead to more service cuts and more fare increases, resulting in fewer riders. Until ultimately public transit is no longer relevant.”
Important to note, public hearings about the proposed fair adjustments are scheduled for Friday, Dec. 13, at 10 a.m. and 4 p.m.
You can read more about the proposed fare hike, service reduction, and public hearing on SEPTA’s website here.