A plan to help SEPTA emerges from the GOP state Senate, with no funding attached

HARRISBURG — Several Republican state senators from Philadelphia and the surrounding region last week debuted potential new accountability measures for SEPTA, in an effort to improve the system and quell concerns from other Senate GOP colleagues who oppose any funding increases for the struggling transit agency.

But they stopped short of suggesting any additional money for the beleaguered transit system that, absent of more state funding, is threatening cuts to its service next month.

Sen. Joe Picozzi (R., Philadelphia), alongside two suburban Republicans, introduced a package of bills that would offer additional oversight over SEPTA, in what is likely to be considered as part of ongoing budget talks.

However, the bill package does not include any additional funding stream, as has long been requested from the nation’s sixth-largest transit system. Top Republican senators have been resistant to supporting any increase for Philly’s SEPTA system — citing the more than $1 billion it already receives from the state annually — without seeing more accountability over fare evasions and previous perceived mismanagement from the agency.

Picozzi said the package of bills are intended to “make the system better in the long run” and improve rider experiences, rather than providing additional funding. The proposals are purposely broad to allow SEPTA to experiment with its improvement ideas, without being hamstrung by restrictive accountability measures, he added. He introduced the bills with Sens. Frank Farry (R., Bucks) and Tracy Pennyciuck (R., Montgomery).

“We want to make sure things are moving in the right direction,” Picozzi added.

The bill package would require SEPTA to publish performance reviews every other year on its progress toward financial stability and how it used state funds. Additionally, the state would establish “minimum system performance criteria” for SEPTA to improve fare evasion issues, public-private partnerships, and bus routes. If those minimums are not met, the agency would be put on a state-required improvement plan.

The bill package has the support of SEPTA General Manager Scott Sauer, who Picozzi consulted as he drafted the bills over the last few months. Sauer said SEPTA is already doing much of what’s suggested in the proposal, including completing annual audit requirements from the federal government and PennDot, as well as seeking public-private partnerships, including its current deal with a developer to build 300 apartments on land owned by SEPTA at the Conshohocken station, and another partnership soon to be announced in Ambler.

“I appreciate [Picozzi] working on this issue, and if this is something that gives the General Assembly peace of mind that SEPTA is doing all it can do to safeguard taxpayers’ dollars, then I’m in favor of it,” Sauer added.

The proposals are likely to be part of ongoing budget talks, in which top Democrats and some Southeastern Pennsylvania Republicans say funding the state’s mass transit remains a top priority in any final deal. And the pressure is on Gov. Josh Shapiro, a Democrat from Montgomery County, to provide more SEPTA funding as Philadelphia and the state gear up for major tourism events in 2026.

» READ MORE: Not just SEPTA: Public transit is in trouble all across Pennsylvania, including in GOP districts

In his annual budget pitch, Shapiro proposed that SEPTA receive an additional $165 million this year, hoping to increase the share of sales-tax revenue allocated to public transit. Increasing how much sales-tax revenue goes to mass transit by 1.75% would offer transit agencies the stability they say they need to stay afloat, SEPTA and other agencies have said previously. Senate GOP leaders say they must increase funding for roads and bridges, too, as part of any deal, and have expressed interest in using new revenue generated from taxing and regulating skill games as a long-term funding source. It’s unclear how much taxing skill games would generate, though Shapiro estimated it could bring in an additional $369 million in the first year if taxed at 52%, the same rate as most slot machines.

In the absence of more state funding, SEPTA will have little choice but to move forward with a restricted budget. The agency proposed a budget in April that would raise fares more than 20% and plans to cut nearly half of its services to confront its $213 million annual structural deficit. Those service cuts go into effect on Aug. 24, pending any state budget deal, with the School District of Philadelphia returning for the first day of school on Aug. 25.

House Democrats have passed funding increases for mass transit four times in the last two legislative sessions to try to give SEPTA and the state’s other struggling transit agencies a much-needed bump. When the General Assembly failed to fund transit in last year’s state budget, Shapiro repurposed $153 million in federal highway projects temporarily to help keep agencies from making significant service cuts at the start of 2025.

» READ MORE: As Philly residents and schools brace for SEPTA cuts and late state funds, there’s no rush for a budget in Harrisburg

Meanwhile, Senate GOP members from rural parts of the state say Pennsylvania doesn’t have money to spare, with a $5.5 billion budget deficit of its own.

The newly introduced bills are “a sensible Republican set of ”asks” to go along with additional public transit funding, said Jon Geeting, a Philadelphia public transit advocate and civic group Philadelphia 3.0 leader.

Rep. Morgan Cephas (D., Philadelphia), who chairs Philadelphia’s delegation to Harrisburg, said she was excited to see Picozzi’s legislation to improve SEPTA and hopes the freshman senator is able to convince his GOP colleagues to support it — and SEPTA as a whole.

At the same time, lawmakers need to be “singularly focused on actually investing in the system to ensure that the system even exists,” she said, noting that SEPTA already does much of the accountability measures Picozzi proposed.

SEPTA is also already working to make recommended adjustments to increase public safety, cleanliness, and ridership experience, Cephas and Sauer noted. SEPTA has cracked down on fare evasions, increased its police presence around stations, and hired an additional 100 people to its cleaning staff over the last year in an effort to improve financial solvency and rider experience.

“Our systems are meeting the moment and addressing every single concern that Republicans are bringing up. The one thing that I need them to shift on is actually funding the actual system like it should be funded,” she said.

Transit for All Pennsylvania, a statewide advocate for mass transit, is “neutral” on Picozzi’s bill, said Connor Descheemaker, the group’s campaign manager. SEPTA and other transit agencies should improve their spending and rider safety, but noted improvements would only be possible with adequate funding, Descheemaker said.

“We need our state legislature to act with urgency and recognize that reforms need to come with investment, because we can only improve things when we invest in them,” they added.

Elena Eisenstadt is an intern for the Pennsylvania Legislative Correspondents’ Association and can be reached at [email protected].