It’s time to consider privatizing SEPTA
The fiscal instability of SEPTA is quickly on the horizon and has left us with a system in crisis and no good way out. The solutions for this cannot come from the same bank of tired ideas.
A vibrant Philadelphia is vital to the economic growth throughout the Commonwealth of Pennsylvania, and we cannot have a vibrant Philadelphia — or any major city in Pennsylvania — without a strong and sustainable transit system.
Unfortunately, the fiscal instability of SEPTA is quickly on the horizon and has left us with a system in crisis and no good way out other than continuing to patch over the problem with more and more taxpayer dollars.
Pennsylvania is facing a host of serious budget decisions if we do not grow our economy, and I am fearful that the current levels of state spending, let alone any increases, will not be sustainable in the near future.
In 2023, SEPTA received $757 million from the commonwealth, funded mainly through sales tax revenue. In the current budget, that number is likely to hit $900 million. Under the governor’s proposed budget for the coming fiscal year, SEPTA would receive $1.06 billion from a $165 million increase.
And those numbers are just for SEPTA’s basic state appropriation, not any capital projects, other state and city funding, or the amount SEPTA collects from user fees.
That proposed increase is in addition to the governor’s flex of $153 million in federal dollars from 2024, which hindered the start of federal transportation projects across the state, and is a prime example of the “rob Peter to pay Paul” position that we will continue to find ourselves in with ad hoc solutions that merely paper over the problems of a system in crisis.
It is admirable that SEPTA has taken steps to lower its budget deficit and has put forward a plan that requires increased self-reliance, but it is not enough. Even with current changes and increased state funding, SEPTA will be in the same situation it finds itself in now in just a few short years.
Facing such a serious problem, the solutions for this or any agency in crisis simply cannot be from the same bank of tired ideas. On the contrary, we must think of new and innovative solutions that ensure the long-term viability of crucial assets like SEPTA.
That is why I recently proposed the partial privatization of SEPTA’s operations, focused on its bus lines.
Privatization of mass transit is not new to American cities. Denver has a portion of its bus lines privatized and has realized considerable savings and efficiencies. In fact, when the Colorado legislature allowed Denver the option of going back to a fully government-run model, it retained its private operations.
In addition, Maryland uses private operators for its commuter buses to major cities like Baltimore and Washington, D.C.
While critics of privatization have pointed out that government operation of mass transit came after private failures back in the 1940s and 1950s, much has changed in how transit services are delivered and how private sector companies have innovated to make transit more accessible.
Right now, private companies are often the transit option of choice in cities with options such as Uber and Lyft, especially among young people. And Pennsylvania has a significant history of allowing private companies to innovate with transit options like automated vehicles.
When it comes to solving SEPTA’s crisis, we should once again open Pennsylvania up to private sector innovation, efficiency, and cutting-edge technology.
Not only can the private sector, when engaged in a public-private partnership, improve operations, but it can do so while off-loading a portion of SEPTA’s budget and creating additional bandwidth for remaining SEPTA-run services.
Ultimately, what we are interested in is a long-term, sustainable system of transit for the Greater Philadelphia region.
Making big changes is never easy, but SEPTA’s proposed service cuts, coupled with the unsustainability of a state-funded recovery, require us to find new ways to ensure Philadelphia can have a functioning transit system. Without Philadelphia having a long-term and viable transit system, the entire commonwealth will suffer.
Pennsylvania’s House Republicans have put forth their idea. We are eager to hear from others about how they would ensure the long-term viability of mass transit in Pennsylvania in a sustainable, taxpayer-minded way.
Jesse Topper represents the 78th District, comprising Bedford and Fulton Counties. He currently serves as the Republican leader in the Pennsylvania House of Representatives.