- State of affairs: "Indeed, mass transit in Pittsburgh is crippled under the financial strain of depleted ridership and the exhaustion of pandemic aid. Federal support for the system, as well as SEPTA, hasn't entirely gone away, however," according to The Centre Square's Christen Smith. (TheCentreSquare.com)
- Back in April: The Federal Transit Administration earmarked $600 million to bolster public transportation funding in Pennsylvania as part of its efforts to expand and modernize transit systems—with the Philadelphia area set to receive the majority of funds ($448 million) based on statutory formulas and funding levels set by Congress that determine how much money flows and where. Pittsburgh received just under $83 million. (Governing.com)
- How $ is Spent: This money can be used to expand, maintain, and operate public transit systems; upgrade stations, tracks, and maintenance facilities; plan and design new transit corridors; and improve access. Federal officials call the money part of "the largest investment in public transit in U.S. history." (Governing.com)
- Early Budget Proposals: Earlier this year, Gov. Shapiro unveiled a budget proposal that included a $283 million increase for transit and related systems—including $39 million for PRT. Months later, the agreed-upon budget contained only a fraction of the proposed increase, with $11 million for PRT. (MassTransitMag.com)
- Temporary SEPTA Funding: At the end of November, Gov. Josh Shapiro again boosted support for SEPTA, the Philadelphia transit system that has been deep into the red following years of dwindling ridership, as transit officials sounded the alarm about crippling price increases and service cuts that would disrupt the lives of more than 800,000 residents. (Governing.com)
- Local Reactions: State Sen. Jay Costa of Allegheny County, the minority leader in the chamber, said PRT's funding needs at this point are not as severe as SEPTA's, which is where "the immediate crisis" is happening. Even though the House and Senate will not be back in voting session until early January, Sen. Costa said that transit has been discussed recently, though did not want to be specific, according to Ford Turner at the Pittsburgh Post-Gazette. (MassTransitMag.com)
- Higher Average Fares: The minority chairman of the Senate Transportation Committee, Sen. Marty Flynn, D-Lackawanna, said transit funding is at a crossroads. "Already, both SEPTA and PRT report that their average fare is well above the national average." During hearings held earlier this fall, Sen. Flynn said the committee "heard from rural, suburban, and urban transit systems alike that a failure by the General Assembly to act on transit funding will result in a fiscal cliff, triggering higher fares and service cuts." (MassTransitMag.com)
- PRT Reactions: As work to find transit funding solutions across the commonwealth, Pittsburgh Regional Transit says it will be planning its own cuts for 2026 if funding doesn't move forward in 2025. Cuts in Allegheny County could cause the same difficulty [as seen in Philadelphia] because Pittsburgh's Golden Triangle and Oakland neighborhoods are the second- and third-largest economic centers in the state. About 30% of PRT riders have no other source of transportation to get to medical appointments, grocery stores, or other important appointments. (UnionProgress.com)
- Criticism: Some lawmakers and critics argue, however, the $240 million annual budget deficit that SEPTA is currently facing after exhausting its federal pandemic relief funds is a problem of SEPTA's own making, and one that taxpayers across the state are not responsible for solving. "We know that if we had a 30% cut in services, we would likely lose multiple regional rail lines that would have to be cut entirely, and what remains would see fewer trains and fewer stops," said Rep. Ben Waxman, D-Philadelphia. "We must reject the idea that the only way forward is a 30% reduction in services and major fare hikes." (SEPTA.org, Governing.com, CityAndStatePA.com)
- Reactions to Shapiro Action: Here's some of what people are saying about Gov. Shapiro's decisive action to protect SEPTA riders, maintain service levels, and prevent fare hikes. (PA.gov)
- Rural Impact: And comments from opponents to the proposed funding strategies who believe rural Pennsylvanians would not benefit, that structurally deficient bridges and roads across the commonwealth need fixing. (CityAndStatePA.com)
- Budget Process: "We could do better if this bill was negotiated through a budget process ... but giving all the money to one particular agency isn't going to get buses running or mass transit systems working in rural Pennsylvania," said Rep. Doyle Heffley, R-Carbon, who was recently selected to continue serving as Chairman of the House Human Services Committee. (CityAndStatePA.com, PAHouseGOP.com)
- Not Enough: House Minority Leader Bryan Cutler, R-Lancaster, urged a vote against House Bill 2625 saying, "I think that this bill is months late and hundreds of millions of dollar short, not to mention all the parties that were left out of it." (CityAndStatePA.com)
- Temporary Solution: Shapiro said the $153 million infusion from federal highway funds, plus a 7.5% in fares, should hold the system over until state lawmakers find a longer-term solution that allows SEPTA to avoid a 30% fare hike planned for January 1. The last of the governor's budget proposals suggests a plan to spend $1.5 billion over the next five years to support mass transit in the commonwealth. (TheCentreSquare.com, SpotlightPA.com)
- Gas Tax: Shapiro's temporary funding solution takes advantage of funds that come primarily from the federal gas tax. (SpotlightPA.com)
- Reallocation Impacts: The reallocated federal highway dollars were previously earmarked for seven interstate highway projects, according to Shapiro, who said that none of the projects had been put out to bid and are "a long way off." He said the highway projects, which affect areas including Jefferson, Philadelphia, and York counties, would not be delayed. (SpotlightPA.com)
- Legality: Alex Armlovich, a housing and transit policy analyst at Niskanen Center in D.C., said that the move, known as "flexing," is legal and has been used by states since the 1980s to aid transit agencies at the expense of highway projects. Former governor Ed Rendell made similar moves in 2005 and 2010, for example. (SpotlightPA.com)
- Service Cuts Still Looming? "Routing highway dollars to SEPTA is a temporary solution that won’t be enough to close the agency’s $240 million deficit. Board Chair Ken Lawrence warned of more service cuts that would begin on July 1, 2025, unless SEPTA secures more funding." (SpotlightPA.com)
- House Approval: House lawmakers voted 111-91 in October to approve legislation that would increase state funding transfers for public transportation across the commonwealth as part of an effort to stave off mass transit cuts, though the bill faces an uphill climb with so little time remaining in the legislative session. The bill is now being considered by the Senate. (CityAndStatePA.com)
- House Bill 2625: As written, House Bill 2625 would increase the percentage of Sales and Use Tax collections transferred to the Public Transportation Trust Fund from 4.4% to 6.15%, resulting in an influx of hundreds of millions of dollars for mass transit—including $186.5 million in fiscal year 2024-25 and $287.9 million in 2025-26. (CityAndStatePA.com)
- Divided Legislature: According to Spotlight PA, the divided Pennsylvania legislature has passed fewer laws and held fewer voting days over the past two years than in most sessions in recent history—a dynamic that is likely to persist when the new session starts in January, after an election in which Democrats clung to their narrow majority in the lower chamber and Republicans maintained their balance of power in the upper chamber. (SpotlightPA.com)
- What's Next: In 2025 and 2026, Democratic leaders seek to strike a deal sending more money to struggling public transit agencies, which Republicans who control the Senate have signaled they're open to working on as long as there's a dedicated revenue stream—which by many reports is tied to a long-debated issue related to regulating and taxing slot machine-like skill games that have proliferated in taverns, convenience stores, and social clubs. (SpotlightPA.com, WESA.fm)
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