SEPTA’s Board approved a total budget of $2.7 billion for Fiscal Year 2027 – a $1.84 billion Operating Budget and $920.7 million Capital Budget. The spending plan represents an increase of just 1.9% over the current year, and includes investments in new buses, more full-length fare gates and other enhancements for customers.

There will be no changes in service levels or fare increases. The operating budget reflects the second and final year of the $394 million capital funds transfer approved by PennDOT to support operations. Without a long-term funding solution at the state-level in the coming year, SEPTA’s future remains uncertain.

Thanks to ongoing austerity measures, SEPTA has realized close to $30 million in annual savings, in addition to increased income from advertising, parking and investments. These efforts have reduced SEPTA’s structural budget deficit from $213 million to $192 million.

The budget also includes the required local match on state funding from the City of Philadelphia and Bucks, Chester, Delaware and Montgomery Counties. Additionally, the City’s Fiscal Year 2027 budget passed earlier this month maintains funding for two important initiatives – the City’s Zero Fare program for low-income Philadelphians and continued participation in SEPTA Key Advantage.

The 12-year Capital Program dedicates funds to advance critical infrastructure and vehicle replacement investments, including Trolley Modernization, the purchase of new L cars and station accessibility projects. SEPTA is also able to restart its bus fleet replacement in Fiscal Year 2027, thanks to the lower structural deficit.

However, this Capital Program relies heavily on debt to fund critical railcar replacements, with a plan to borrow $4.3 billion over 12 years. The debt-heavy program does not have the capacity to fully fund the replacement of the B cars, which are approaching 50 years old.

Meanwhile, SEPTA’s state of good repair backlog has doubled in the past decade to $10.2 billion, undermining system reliability and driving up future repair costs. SEPTA’s Capital Budget remains between one-third to one-half of the capital funding provided to peer transit agencies.

-via Press Release