Republican House Leader Jesse Topper (R-Bedford/Fulton) thinks he may have a solution for the constant fiscal crisis that is the Southeastern Pennsylvania Transit Authority (SEPTA).
The private sector.
On Thursday, Topper announced a sponsorship memo for a bill to allow a public-private partnership to generate more SEPTA revenue.
“What’s clear is that doing the same thing over and over again is not going to fix SEPTA’s problems, and other currently proposed options only serve to patch over the problems of a system chronically in crisis,” Topper said.
The move comes in response to SEPTA officials’ announcing draconian measures to deal with the latest budget shortfall. They include a 45 percent cut in services with fare increases, workforce reductions, and a 9 p.m. curfew for all services.
According to Topper’s memo, his plan would require SEPTA to enter into a public-private partnership with a private entity could operate the authority’s buses. The partnerships would be subject to the approval of the Public-Private Partnership Board and legislative oversight.
“While SEPTA has done an admirable job in taking responsibility for its chronic budget deficits by raising fares and finding efficiencies in its operations, it is clear this is a problem government cannot solve without going back to taxpayers for more money or finding new sources of revenue,” Topper said.
“My legislation will offload, at a minimum, SEPTA’s busing operations to take the burden and expense of this function out of SEPTA’s budget and place it within the operation of a private company that can bring the skill and expertise needed to provide high-quality service at a lower price.”
And by privatizing its buses, SEPTA would not need to reinvent the wheel, Topper said.
“Privatizing busing operations has been successfully implemented for commuter bus operations in Maryland and for busing services in major cities like Denver. In addition, Americans are increasingly reliant on private ride-share services to manage transportation needs,” Topper added. “Privatizing SEPTA’s busing operations serves to offload operational costs and expenses of a portion of SEPTA’s overall portfolio and can help alleviate expenses while offering a more efficient way to deliver the same service.”
Supporters of the SEPTA system, in particular those who see mass transit as a way to address global warming, say it’s underfunded and needs more general revenue. But as Topper notes in his sponsorship memo, state taxpayers gave SEPTA $773 million in 2023 alone, with increases requested each year after.
“We cannot continue to put Pennsylvania taxpayers on the hook for filling the budget hole of a transit system in crisis. But at the same time, we must acknowledge the vital importance of having robust mass transit options in the Philadelphia region. As such, it is time to use the expertise of the private sector to find the necessary path forward to operate SEPTA busing services in an efficient and cost-effective manner,” Topper wrote in his memo.
“Advocates for additional taxpayer funding have pointed to the fact that SEPTA has reduced its budgetary deficit from $240 million to $213 million. If the authority has been unable to find more than $27 million in savings in its $1.7 billion operation, which totals about 1.55 percent, then it is time to do something different.”’
Jason Gottesman, deputy chief of staff for Topper, said no Democrats had signed on so far. However, with the Democrats having a one-person majority, the GOP will need at least some support from them to pass the bill.
Gov. Josh Shapiro (D) has been a SEPTA ally. In his $51.5 billion 2025 proposed budget, Shapiro penciled in $1.5 billion for mass transit over five years. A spokesperson for Shapiro did not comment Thursday about Topper’s bill. In December, Shapiro announced $22.95 million in additional funding for SEPTA, that also included contributions from the suburban counties. However, critics like the free-market think tank Commonwealth Foundation note the mass transit agency now spends more while serving fewer riders.
Asked to respond, SEPTA released a statement defending its fiscal record.
“SEPTA moves people more efficiently than nearly every peer system in the country. By almost every metric PennDOT uses to evaluate SEPTA’s operations, SEPTA is one of the most efficient transit agencies in the country and at or near the top in every category. SEPTA uses 16 percent fewer employees per 100,000 trips compared to the peer average, and SEPTA’s cost to operate each service mode is significantly below the national industry average.
“SEPTA continually explores other aspects of its core business functions that can help it achieve cost efficiencies and service enhancements for customers. For example, all SEPTA Paratransit and Shared Ride service is operated by private operators, and we are currently seeking interest from potential vendors to operate the Authority’s medical services.”
“We appreciate Rep. Topper’s acknowledgement of the recent progress SEPTA has made, and we know we need to do more,” they added.
