SEPTA Board To Consider Proposal To Implement 11% Fare Increase On July 1
Proposal Would Delay More Extensive 24% Fare Increase, 20% Service Cut and Layoffs Until Fall Pending State Resolution of Long Term Funding Solution
May 17, 2007
PHILADELPHIA, PA — At its regular monthly meeting on Thursday, May 24 the SEPTA Board will consider a proposal based on the recommendations from the SEPTA 2008 (FY 08) Operating Budget Hearing Examiners Report and SEPTA staff to implement an 11% fare increase on July 1 in an effort to begin to address the expected shortfall in the proposed budget.
Facing a projected budget deficit of $150 million on a proposed operating budget of $1.022 billion, SEPTA held a series of public hearings in April to provide details of proposed budget plans to resolve the shortfall based on the receipt of additional state subsidies as well as without added state funding.
The initial budget shortfall has been impacted by a number of SEPTA actions that have resulted in an anticipated reduction in the budget shortfall to $129 million. To address the shortfall, as proposed in the Hearing Examiners Report and revised SEPTA staff recommendations, Budget Plan A (Simplification Fare Proposal) includes an 11% across the board fare increase effective July 1 that would generate $35 million in additional revenue while SEPTA would seek an additional $94 million in state subsidy. Under Plan A there would be no increase in the base cash fare or for tokens. By taking these actions SEPTA on its own has addressed more than one-third of its operating budget shortfall.
The proposal is also consistent with the recommendations of the PA Transportation Funding and Reform Commission which calls for a “Partnership of Actions” to address the serious public transportation funding issues in the Commonwealth. Both the State Transportation Funding and Reform Commission and the HR 538 Transportation audit recommended that SEPTA implement periodic fare increases.There has been no SEPTA fares increases implemented since 2001.
However, without the additional state subsidies SEPTA will be forced to implement the extreme and drastic measures proposed in Budget Plan B (Simplification Fare Proposal).Plan B, as proposed and modified in the Hearing Examiners Report and SEPTA staff proposal, includes a 24% fare increase that will generate $69 million in additional revenue and a 20% across the board service reduction that would save $60 million in expenses. This plan would result in a ridership loss of approximately 20% or 40 million annual trips.In addition, as part of Plan B about 1,000 SEPTA jobs would be eliminated. SEPTA staff is recommending implementation of this plan on September 2, 2007.
Neither the Hearing Examiners Report or SEPTA staff considers Plan B to be in the best interests of the region and the Commonwealth. They suggest that the plan should only be considered and implemented as a matter of last resort should the Legislature and Governor not reach an agreement on a long term funding plan for transit in the state. Subsequently, it has been recommended to the Board that implementation of Plan B be delayed in order to provide the parties additional time beyond the start of the SEPTA Fiscal Year on July 1 to reach an agreement.
In PA Governor Edward G. Rendell’s recent budget proposal he reiterated the Pennsylvania Funding and Reform Commission’s report conclusion that statewide transit needs total $760 million annually and that a new dedicated funding source was necessary to provide the long-term viability of transit service throughout the state. As a solution, he recommended a 6.17% oil company gross profits tax. The new funds would address SEPTA’s budget shortfall and provide long term funding stability.
BUDGET PLAN A (SIMPLIFICATION FARE PROPOSAL)
·Plan recommended for implementation on July 1 by Hearing Examiners Report and SEPTA staff
·Fares increased by an average of 11%
·Cash Base Fare remains $2.00
·Transfers to be discontinued effective July 31
TRANSIT DIVISIONS
Current Proposed
Cash
$2.00 $2.00
Tokens
$1.30 $1.30
Transfers discontinued
$0.60 effective July 31
Weekly Pass
$18.75 $20.75
Monthly Pass
$70.00 $78.00
Day Pass
$5.50 $ 6.00
REGIONAL RAIL
·Proposal reduces the number of fare zones by 2, calling for the merging of Zone 1 and Zone 2 stations to a single zone. In addition, Zone 4 would also be eliminated and specific stations would become Zone 3 or Zone 5 according to air mile distance from Central Philadelphia. Single and ten-trip tickets for current Zone 1 stations will be discontinued on July 1. A new T1 Weekly and Monthly pass would be available through December for current Zone 1 Regional Rail Stations at a price 20% higher than current prices as part of the progression to the new Zone.
Regional Rail Fares for Zone 3 as an example:
Current Proposed
Peak
(one-way)
$4.50 $5.00
Off Peak
(one-way)
$3.75 $4.25
Ten Trip
$42.50 $47.50
Weekly
$34.50 $39.00
Monthly
$126.50 $142.50
PARATRANSIT
Shared Ride Current Proposed
(Seniors)
Cash
$3.50 $4.00
Group
$3.20 $3.70
ADA Current Proposed
(Riders with
Disabilities)
Cash
$3.50 $4.00
Tokens
Two + $.50 Two + $1.00
Pass
Zone 2 Zone 2
TrailPass TrailPass |
