Gov. Josh Shapiro has approved up to $394 million in new money for SEPTA from a Department of Transportation fund, bringing an end to the local transit system’s fiscal crisis — but not the political finger-pointing.
SEPTA has been operating in the red for years and now faces a $213 million operating budget deficit. Shapiro and the Democratic-controlled House have been pushing for increased taxpayer subsidies to keep the trains and buses rolling, with the House passing a $292 million spending proposal using funds from a sales tax increase to support SEPTA.
Senate Republicans, led by Majority Leader Joe Pittman (R-Armstrong), said no. They argue the system needs reforms more than new funding sources and demanded that money be transferred from SEPTA’s capital assistance funding to fill the gap.
In a letter to SEPTA General Manager Scott Sauer on Monday, Pennsylvania Department of Transportation Secretary Michael Carroll announced the Shapiro administration was approving his request to use $394 million of the capital fund to support operations. In the letter, Carroll also blasted Senate Republicans for refusing to pass new transit spending through the legislature as Shapiro wanted.
“Unfortunately, Senate Republicans have refused to agree to a long-term solution that provides certainty and does not also unfairly raid mass transit capital dollars for unrelated expenditures – and the Shapiro administration believes Pennsylvanians who rely on SEPTA deserve service that helps them get to work, school, or wherever they need to go.
“The five counties where SEPTA operates support nearly 45 percent of the commonwealth’s overall economy. Any disruption in the ability to utilize transportation networks in the area will slow down economic growth and have profound impacts on the rest of the commonwealth.”
But critics of SEPTA say the real problem is poor management.
“SEPTA is mismanaged,” said John Riccutti, a former SEPTA district transportation director. “Sauer and the SEPTA board should be fired, he said. “They’ve wasted money on things like renaming routes and changing fare systems. There needs to be an overseer as to where the money goes and what it’s being spent on.”
Pittman said Democrats had finally agreed to do the right thing.
“Had our Democrat colleagues joined us in putting people over politics by supporting and advancing House Bill 257, as passed by the Senate on Aug. 12, this money could have been utilized three weeks sooner – and there would have been no negative impacts to school children, seniors, and everyone who relies on transit services as part of their daily commutes,” he said in a statement.
Pittman also praised local Sens. Frank Farry (R-Bucks), Joe Picozzi (R-Philadelphia), and Tracy Pennycuick (R-Montgomery), calling them “tremendous leaders and instrumental in our efforts to address mass transit needs in a responsible and reliable manner.”
With access to the capital fund, SEPTA can now operate without massive service cuts, some of which have already been blocked by the courts.
Lawyer George Bochetto, a Republican who ran for U.S. Senate in 2022, had sued SEPTA on behalf of some riders after the transit agency began making drastic cuts.
“I told SEPTA from the beginning we can reach a solution the easy way or the hard way,” said Bochetto. “SEPTA insisted on pushing its false ‘the sky is falling’ narrative, so we did it the hard way. SEPTA’s entire conduct and strategy in this matter was ill-considered and contrary to its statutory mission of serving the riders.”
Picozzi, Pennycuick, and Farry released a statement of appreciation to Shapiro on Monday for releasing the funds, noting the dollars in question are not committed to any specific capital project.
“This is exactly what Senate Republicans have been saying all along and why we passed a bill on Aug. 12 to do just that. Now it’s time to move past the political rhetoric and focus on rider and workforce safety, stronger fiscal accountability, and a long-term funding solution for SEPTA.”