SEPTA finds $91.4M through accountability program

(The Center Square) – Central to the debate around bailouts for the Philadelphia area’s mass transit system, SEPTA, has been the long-term sustainability of the agency’s finances. It’s currently set to face a $213 million deficit in July.

Republicans in the legislature have resisted bailouts and solutions that would allocate more state dollars toward mass transit, favoring funding road and bridge construction throughout the state and demanding belt-tightening measures.

Today, SEPTA announced that it has identified $91.4 million in accruing annual recurring revenue and savings through its Efficiency and Accountability, or E&A, program.

The authority says it’s “committed to becoming a more cost effective, nimble, and healthy organization – while still delivering the safest, cleanest, and most reliable service for customers.”

SEPTA will now be entering the next phase of its E&A program, which it anticipates will deliver an additional $76 million over the next three years by focusing on “strategic areas like safety, fare evasion, and joint development.”

“As we continue to make the case for funding transit, we understand that self-help must be part of the solution to put SEPTA in the best financial position possible,” said SEPTA Board Chair Kenneth E. Lawrence Jr.

Austerity efforts, which included a hiring and promotion freeze within the agency, helped bring the deficit down to its current level from $240 million. Still, SEPTA isn’t unique in its troubles, and other mass transit systems throughout the country are facing similar challenges.

The COVID-19 pandemic was a devastating demonstration of the instability that comes from relying too heavily on rider fare for maintenance. In fact, it was the need for more public dollars that fostered the transition throughout the states from private to public ownership of transit authorities.

“While we cannot cut our way out of this funding crisis, engaging our employees to help identify opportunities for improved performance demonstrates that we are good stewards of public funds,” said SEPTA Interim General Manager Scott A. Sauer.

Though it’s certainly a start, many say that more attention, rather than more cuts, would benefit mass transit. Revitalizing the systems could help to attract younger generations to areas within their service range, many of whom have eschewed car ownership or express environmental concerns and a desire for more walkable lifestyles.

Philadelphia is poised to receive visitors for the Major League Baseball All Star game, the FIFA World Cup, and America250 all in 2026. Advocates for transit say they’d like to offer tourists a safe and thriving system to utilize while they visit the state.

For his part, Secretary of Transportation Mike Carroll has tried to emphasize that the revenue coming from the Philadelphia region is essential to the state’s economy and does much to support rural areas whose legislators have shown resistance to bailouts.