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SEPTA approves 1st of 2 planned rate hikes amid major budget shortfall

SEPTA approves first of two planned rate hikes amid major budget shortfall
SEPTA approves first of two planned rate hikes amid major budget shortfall 02:24

Starting Dec. 1, hopping on a SEPTA bus, train, or trolley will likely cost you more. The Transit Authority approved a 7.5% rate increase Thursday across much of its system.

Under the increase, SEPTA Key users will see rates on buses, subways, and trollies increase to $2.50, aligning them with those who use cash. Regional Rail riders will see an increase of 25 cents to $1 per ride, depending on where you get on.

According to SEPTA, TransPass+, Convenience Pass, FleX Pass, and TrailPass fees are unchanged after this hike. Seniors and children under 12 years old will continue to ride for free.

RELATED: How is SEPTA funded? Inside the Philadelphia transit agency's budget - and what's behind the "death spiral"

SEPTA Chief Operating Officer Scott Sauer says the move will get the agency back to baseline after it has bypassed a previously planned hike.

"We were increasing fares generally every three years and that was a longstanding practice," Sauer said. "We paused in 2020. So the 7.5 actually gets us back to whole."

But Thursday's rate hike likely won't be the last. Earlier this month, SEPTA announced a steeper 21.5% fare increase and potential service cuts, slated to start on Jan. 1 as the authority deals with a major budget crisis. With the two increases, riders would pay nearly 30% more come the start of 2025.

"I'll probably ride and walk in between there to help save on some of that cost," Geneva, a frequent rider from South Philadelphia, said.

"They shouldn't do that. It's gonna be too hard for people," Sunday Fields, from Overbrook, said.

Pennsylvania Gov. Josh Shapiro asked state lawmakers for $161 million in funding for the agency as part of this year's state budget. But the money was cut out of the plan just days before its passage. While state lawmakers planned to discuss public transit funding during the fall session, the state Senate failed to approve any money before the session ended last week.

Philadelphia City Council President Kenyatta Johnson, speaking with CBS News Philadelphia on Wednesday, expressed concern for the transit agency's financial situation. He said the city cannot provide more funding to SEPTA and called on state lawmakers to return to Harrisburg.

"We think a special session should be called in Harrisburg to make sure we're addressing the financial resources we need to allow SEPTA to be viable moving forward," Johnson said. "Hopefully, we have the same type of energy we had when we fixed I-95 when it comes to providing funding to SEPTA."

The transit agency has scheduled two public hearings on the second proposed rate increase for Dec. 13 — one at 10 a.m. and one at 4 p.m. But with no new funding seemingly on the horizon, Sauer acknowledged another increase seems imminent.

"It is at this point," Sauer said. "Without a solution, we have to move forward."

As part of the second rate hike, SEPTA also proposed upwards of 20% service cuts. The agency did not have details about which routes could see reductions Thursday and said they expect to have that information ready early in 2025.

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