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Gov. Shapiro to propose $282.8 million in new state money for SEPTA and other transit agencies

SEPTA says it would be able to hold off cuts with money from its service stabilization fund until its share of Shapiro's proposed $282.8 million arrived.

Members of the Save the Train Coalition pose for a group photo in front of the High Point Cafe at the Richard Allen Lane Regional Rail Station in Philadelphia, Pa., on Thursday, Jan. 25, 2024.
Members of the Save the Train Coalition pose for a group photo in front of the High Point Cafe at the Richard Allen Lane Regional Rail Station in Philadelphia, Pa., on Thursday, Jan. 25, 2024.Read moreTyger Williams / Staff Photographer

Gov. Josh Shapiro plans to propose $282.8 million in new state funding for public transit in his upcoming budget, administration officials said Saturday, a development that comes as a cash-strapped SEPTA prepares for deep service cuts and a fare increase.

Shapiro’s new measure would generate an estimated $1.5 billion over five years by increasing the allocation of sales tax revenue dedicated to supporting commonwealth transit systems, the administration said. SEPTA would get the largest cut.

“Investing in and improving our public transit systems is a commonsense way to create good-paying jobs, spur economic development, and help Pennsylvanians reach their destinations safely,” Shapiro said in a statement.

If enacted, the governor’s plan would establish the largest bump in the state’s share of public transportation funding since landmark legislation in 2013 earmarked $450 million yearly from the Pennsylvania Turnpike.

Growing numbers of transit advocates and riders in the Philadelphia region have begun to protest the looming SEPTA cuts and demand more stable state support for transit, including a coalition in Northwest Philadelphia that is rallying around two threatened Regional Rail lines.

“I want to thank Governor Shapiro, who has been proactively engaged with SEPTA and our partners for months to construct this strong funding proposal to address our most pressing needs and enable [us] to continue serving our communities,” CEO and General Manager Leslie S. Richards said.

A proposal that also would have used a bigger share to help transit, though passed by the Democratic-controlled state House, did not make it into the crunch-time December budget deal negotiated by Shapiro and leaders of a divided legislature. SEPTA had projected that it would have received $190 million a year under that earlier measure.

In a letter released Saturday night, Mayor Cherelle L. Parker and City Council President Kenyatta Johnson urged Shapiro to increase funding for SEPTA.

”Without additional investments, SEPTA would be forced to cut service levels and increase fares — setting off a chain of negative consequences for local residents and businesses, the regional economy and, over time, commonwealth tax revenues,” they wrote.

Administration officials said Shapiro is asking SEPTA to guarantee a real plan to tackle crime and disorder and cleanliness on its system so people can feel safe and comfortable riding. Shapiro, a former state attorney general, has focused on SEPTA’s public safety issues for months; he brokered a deal to end a strike by the union representing transit police officers in December.

“We are committed to addressing our community’s serious concerns about cleanliness and safety,” Richards said.

Shapiro has also been urging elected leaders of the four suburban counties and Philadelphia to increase their local contributions to SEPTA.

In Northwest Philadelphia, activists from a coalition of 18 neighborhood groups called Save the Train are aiming their pleas at Shapiro, a Democrat from Montgomery County. The governor was chair of the county commission and a state representative there.

They’ve got more than 4,000 signatures on an online petition demanding that he take the lead on finding a funding solution for transit, leaders said. They are planning to ride the Chestnut Hill West train from Mount Airy to Center City on Sunday for a rally.

SEPTA is planning for a possible fare increase of about 30% and service cuts of 20% on bus, subway, trolley and Regional Rail service, in case fiscal help from Harrisburg doesn’t arrive in time.

Service cuts would take place in September because of the time it takes to wind down operations and union contracts governing employee schedules, SEPTA officials said. A fare increase could come earlier. The agency plans to use money from its service stabilization fund, mandated as a reserve by PennDot, to help while waiting for funding help, officials said.