A Democrat-controlled Pennsylvania House committee passed a SEPTA funding bill Wednesday, but the key to its success may be the work of local Republican state Sen. Joe Picozzi.
The Philadelphia freshman and his Delaware Valley GOP colleagues helped convince the House Transportation Committee to back a plan to address the SEPTA funding crisis, one that includes reforms demanded by the Republican-controlled state Senate. Among the changes pushed by Picozzi is an annual legislative review of both SEPTA and Pittsburgh Regional Transit. Additionally, both agencies must submit proposals for public-private partnerships within 90 days.
The bill passed the House Transportation Committee by a vote of 16–10, with the support of Democrats like Rep. Sean Dougherty (D-Philadelphia).
“This crisis is not just about SEPTA,” Dougherty said. “Other transit systems statewide are preparing to make cuts of their own. These cuts will hurt real people, destroy jobs, and hurt businesses of every size. These cuts do not need to happen.”
SEPTA operates regional commuter trains, buses, subways, and the El in Philadelphia. The agency is facing a $213 million recurring budget deficit and says it needs at least $168 million in new state funding to avoid drastic service reductions and fare increases. Gov. Josh Shapiro has proposed $292 million in new taxpayer-funded subsidies for SEPTA.
If the funding does not come through, the transit authority has announced sweeping cuts to service beginning Aug. 24, along with a fare increase of 21.5 percent.
Democrats insist the bill is more than a simple taxpayer bailout.
“The bill provides funding for SEPTA and all transit agencies in the state with all the reforms demanded by our Senate colleagues,” Dougherty said.
Along with Picozzi, Sens. Frank Farry (R-Bucks) and Tracy Pennycuick (R-Montgomery) have been working to resolve the impasse. Dougherty’s bill also incorporates Farry’s proposal to allow digital advertising on buses as a new revenue source.
The legislation follows Shapiro’s budget plan by allocating an additional 1.75 percent of the state’s total sales tax revenues to transit agencies, said House Transportation Committee Chair Ed Neilson (D-Philadelphia). Neilson noted that southeastern Pennsylvania provides “45 percent of the state budget and gets 19 percent in return.”
In addition to mass transit funding, the bill includes $325 million for roads and bridges, including smaller state roads that are often neglected, Dougherty said.
Farry noted that SEPTA’s financial issues are not new.
“I was talking about solutions two years ago,” Farry said. While SEPTA officials cite a structural deficit, Farry pointed out the state faces a $4 billion shortfall in its $48 billion budget.
He previously introduced legislation to earmark tax revenues from skill games to fund SEPTA and repair roads and bridges statewide. He estimates the measure would generate $500 million in new revenue—more than enough to address the transit crisis and increase funding for infrastructure.
Farry told DVJournal that new revenue is essential. He criticized Democrats, who control the House, for proposing to use existing sales tax revenue that currently supports programs for seniors, veterans, and other vulnerable populations.
“They won’t say which programs they’d like to cut,” Farry said. “We need to be cognizant of the families we represent. We need to solve this without cutting other programs. Their plan is bad policy.”
Democrats have also proposed legalizing recreational marijuana, taxing it, and using the revenue to support transit and other priorities.
“Those folks have never met a tax dollar they don’t want to spend,” Farry said of the marijuana plan.