By: Senator Tracy Pennycuick
Over the last several weeks I have heard from residents about Pennsylvania’s budget and funding for SEPTA. As your state Senator, I take my role of ensuring our tax dollars are spent wisely and effectively very seriously.
As I reported to you last February, the Governor’s proposed budget called for almost $4 billion in new spending at the same time as our Commonwealth is facing a $3.5 billion deficit. We simply cannot afford the Governor’s proposal and unlike the federal government, the state must balance our budget.
Recently, Senate Republicans took action by passing a budget bill to provide funding at the levels included in the final budget for FY 2024-25. If the House also approves Senate Bill 160, the state can immediately begin disbursing nearly $47.6 billion, without the need for any new taxes.
While negotiations continue on a final state budget for FY 2025-26, we can – and should – provide counties, school districts, social service providers and others with the critical resources they need right now. Rest assured, we recognize this is not the final step in the process of developing the budget for FY 2025-26.
Please know that I understand the importance of a strong and robust transportation network across our great state. Mass transit is a key part of helping many Pennsylvania residents get where they need to go, which is why the Commonwealth already provides more than $2 billion every year for mass transit programs statewide. In fact, Pennsylvania is the fourth highest in the nation in providing financial support to our statewide transit systems and that each year.
To help ease SEPTA’s budget crisis, the Senate recently approved a $1.2 billion package to fund Pennsylvania’s public transportation system and invest in our roadways. Over the next two years, this plan will dedicate $600 million to public transit, including $320 for SEPTA, and $600 million to road improvements.
This funding comes from the Public Transportation Trust Fund. This fund was created specifically to pay for public transportation in the commonwealth. PennDOT’s own regulations provide for transit agencies to reallocate fund money to sustain their operations. Because the fund receives billions of dollars each year, our proposal to draw money from this account for mass transit and road projects for the next two years will not jeopardize a single planned capital project. In addition, it does not increase our structural deficit or transfer money from our sales tax revenue that currently goes to our seniors and veterans.
Spending from the trust fund account has been far less than the money it receives, leading to an ever-increasing balance that could be better put to use for mass transit and roadway reconstruction. In June of 2019, the balance in the fund was $370 million. Today the balance stands at more than $2.4 billion, an amount that is significantly more than the account spends in a year.
The legislation we passed also includes important reporting and transparency requirements for SEPTA to ensure taxpayer dollars are spent wisely and to give the General Assembly greater oversight of its fiscal operations. SEPTA must still undergo additional reforms to bring its finances back into balance, and I look forward to working with its leadership to chart a path toward long-term stability. It also addresses public safety and includes critical reforms such as reauthorizing the special prosector for crimes on SEPTA properties, and increasing penalties for assaults against SEPTA personnel.
Unfortunately, the House of Representatives voted against this proposal and did not allow it to even be considered by the full House.
Investing in both public transit and our roads ensures we have a modern, efficient system ready to meet future needs. The package passed by the Senate represents a balanced, responsible approach to funding SEPTA, preventing route eliminations, and investing in vital infrastructure.
It will prevent the need for deep service cuts and painful disruptions while a long-term solution is identified. This also allows time for the critical reforms in the bill to work to allow ridership to stabilize and ensure any new dollars dedicated to mass transit are not lost to waste and mismanagement.
CONTACT: Lidia Di Fiore (215) 541-2388