Governor Shapiro Diverts $153 Million to Support Pennsylvania’s SEPTA

Pennsylvania Governor Josh Shapiro has announced the redirection of $153 million in federal highway funding to the Southeastern Pennsylvania Transportation Authority (SEPTA) in an effort to avert impending fare hikes and service cuts. The decision was made public on Friday, November 22, during a press conference held at the Frankford Transportation Center in Philadelphia.

Governor Shapiro, a member of the Democratic Party, stated that the funds would be reallocated from seven highway projects across Pennsylvania that have not yet commenced construction. «While these funds will come from seven different highway projects across the state, none of those projects are under construction yet,» Shapiro explained. «There is no reason to keep that money on our balance sheet in the state when we can invest it in SEPTA right now and help this community.»

The announcement serves to temporarily halt SEPTA’s planned fare increases and service reductions, which were scheduled to take place in January 2025. These measures were anticipated to increase fares by 29% and reduce service levels by 20%. According to SEPTA, the agency faces an annual structural budget deficit of $240 million, a situation exacerbated by the lack of state funding that would have provided an additional $161 million.

Ken Lawrence, the chair of the SEPTA Board, expressed relief, noting, «SEPTA has been in the water for two years now and we were going under. And today, Governor Shapiro has thrown us a lifeline.» Although some fare increases are still set to occur on December 1, the immediate service cuts and steeper fare hikes have been deferred until the summer.

During the press conference, Philadelphia Mayor Cherelle Parker sided with Shapiro, emphasizing the importance of bipartisan support for mass transit funding. «If you claim to be pro-business and if you claim to be pro-growth, I don’t care what your party is, you will find a way to partner with our government and our legislative leaders,» Parker asserted.

Shapiro also addressed his budget proposal for the fiscal year 2024-25, which would have allocated 1.75% of sales tax revenue to secure $282.8 million in ongoing funding for state mass transit. He pointed out that the funding initiative was not passed by the Republican-controlled Senate, despite being cleared by the Democratic-controlled House.

The Governor insists this financial maneuver is a stopgap measure meant to provide immediate relief to SEPTA while legislative solutions are sought. «I think we have a huge opportunity in front of us with USA 250 coming to Pennsylvania, and we need SEPTA to be able to help support that,» Shapiro added, alluding to the significant upcoming events in Philadelphia, including America’s 250th anniversary celebration.

Kim Ward, the Senate President Pro Tempore and Pennsylvania’s leading Republican Senator, criticized the move, labeling the situation a crisis instigated by Shapiro. She highlighted the prioritization of education funding over transit and pointed to flaws within SEPTA’s structural management that require attention.

The diversion of funds will require final approval from the federal government as they are part of federal highway resources. The potential impact on ongoing highway projects in Republican-represented areas has triggered further debate.