A Council member says the new city budget puts SEPTA’s subsidized fare program in jeopardy | City Council roundup
City Councilmember Nicolas O'Rourke's office says budget cuts for Zero Fare program will hurt ridership capacity.
Philadelphia’s subsidized SEPTA fare program, which created the first major dustup of the budget season, may continue to be a point of contention for transit advocates in the coming year.
Mayor Cherelle L. Parker originally proposed in March eliminating Zero Fare, a two-year roughly $60 million pilot program that provides SEPTA access for about 25,000 Philadelphians living in poverty. Then, after pushback from Philadelphia City Council members and advocates for the in-turmoil transit agency, the Parker administration backtracked and said it would negotiate with SEPTA to continue Zero Fare.
But in the next year’s $6.8 billion city budget, the program, Councilmember Nicolas O’Rourke said, appears to be shortchanged. Council passed the city budget on Thursday — during the final session before the legislative body adjourns until September — along with Parker’s Housing Opportunities Made Easy (H.O.M.E.) Plan. Also on Thursday, Council heard introductions on a bill to add a bike lane near City Hall and another offering a tax credit to merchants who support Philadelphia-based performing arts.
O’Rourke’s office estimates that starting on July 1, Zero Fare will receive $8 million in leftover funds from the pilot program, a sharp decrease from what his office estimates to be $30 million in funding for the program this year. The reduction leaves the number of low-income Philadelphians the program is able to support in question. O’Rourke, one of the strongest opponents of Parker’s original proposal to abandon Zero Fare, said in a statement Wednesday that “many of the 25,000 residents who currently rely on this program may have their benefit terminated prematurely” unless a new “funding source” is identified or an agreement is reached with SEPTA.
A spokesperson for Parker did not respond to a request for comment on O’Rourke’s office’s estimates, but her administration said in April that they were “in discussions with SEPTA to extend the Zero Fare Pilot through Fiscal Year 2026.” The city also reached an agreement with SEPTA in April to continue offering Key Advantage, a program that covers fares for thousands of city employees, at its current level after Parker originally proposed cutting its funding.
What was this week’s highlight?
Lingering budget drama: O’Rourke’s office estimates that the city spent approximately $20 million over two years on the Zero Fare pilot. The program’s support capacity with a reduction in funding remains to be seen, but O’Rourke sounded the alarm this week.
O’Rourke, of the progressive Working Families Party, was absent from the Council meeting, but said in a statement Wednesday that the program “may now be unable to support all current recipients,” let alone scale to more.
SEPTA has said significant service cuts and increased fare would become a reality, if Pennsylvania’s state legislature fails to fund the transit system in the state budget.
O’Rourke introduced legislation in April to establish a Transit Access Fund that essentially sought to codify key components of Zero Fare into law and calls for the allocation of 0.5% of the city’s General Fund to the transit fund.
“I strongly encourage the Administration to go to the mat for a fully funded Zero Fare, and I urge every Philadelphian who believes mobility is a right — not a privilege — to join me," O’Rourke said. “Let’s refuse to allow the people who can least afford it to fall through the cracks.”
What else happened this week?
A new bike lane?: Councilmember Jeffery “Jay” Young, Jr. introduced legislation to remove a vehicle travel lane around City Hall and replace it with a protected bike lane.
Currently, City Hall is surrounded by four travel lanes of often swift-moving traffic. Advocates say that the protected bike lane will allow cyclists to traverse the area safely and will more generally calm traffic for all users, and especially making it easier for pedestrians to cross the street.
“This is a dangerous road, yet a huge destination for Philadelphians and tourists alike,” said Nicole Brunet, policy director for the Bicycle Coalition of Greater Philadelphia. “Thank you Councilmember Young for moving the ordinance forward.”
The Parker administration transmitted the bill to City Council. On Tuesday, Philly Voice reported that urbanist groups were petitioning Young to introduce the legislation. The bill has the “general support” of Pennsylvania’s Department of Transportation, which plans to repave the streets around City Hall.
A petition in support of creating the bike lane, started by transit groups Philly Bike Action and 5th Square, had 1,427 signatories by Thursday. The Logan Square Neighborhood Association sent a letter of non-opposition to Young, but has no formal position.
“Most likely it will be in the Streets and Services Committee [in the fall],” said Young. “We’ll have a conversation if the bill is brought up for committee hearing.”
Supporting the arts: Councilmember Isaiah Thomas introduced a bill Thursday that would provide qualifying merchants — such as hotels, motels, and limited-service restaurants — a tax credit against their business income and receipts tax liability if they contract the services of a Philadelphia-based performing artist or a Philadelphia-based performing arts organization.
If passed, businesses can start utilizing this tax credit starting in tax year 2026.
The credit will manifest in an amount equal to “the greater of $400 or 15% of the cost” of compensation for contracting or retaining the artist or the organization’s services, according to the bill.
Quotable
Some things you like in a budget, some things you don’t. Some things you fight about, some things you win. Some things you lose. But the process of making this budget is not easy and it is not perfect, but the imperfect shouldn’t be the enemy of good."
That was Councilmember Curtis Jones who, in a speech at the end of Thursday’s final Council session before their summer break, encapsulated the roller coaster of budget negotiations.
Council had to navigate a few squabbles on the budget this year before ultimately passing it in a series of bills on Thursday, 15-1.