Transit Agencies Face Uncertain Future as Pennsylvania Legislature Grapples with Funding Shortfalls

Feb 16, 2025 at 11:23 AM
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Pennsylvania's public transportation agencies are bracing for a challenging fiscal year as state lawmakers struggle to allocate sufficient funds. The Pittsburgh Regional Transit (PRT) and other transit authorities are facing significant budget deficits, primarily due to the expiration of federal pandemic relief and stagnant state funding. Governor Josh Shapiro's proposed budget includes an increase in state sales tax funds designated for transit, but this falls short of what agencies claim they need. The situation is particularly dire for PRT, which projects a $100 million deficit starting July. Meanwhile, the Southeastern Pennsylvania Transportation Authority (SEPTA) has already received emergency allocations to stave off immediate cuts. State legislators acknowledge the urgency but face competing priorities, including education funding and revenue uncertainties from new sources like cannabis sales.

The challenges faced by Pennsylvania's transit systems highlight a broader issue of long-term underfunding. For over a decade, state support for public transportation has remained static, even as operational costs have risen. The end of federal pandemic assistance has exacerbated these financial pressures. Governor Shapiro's budget proposal aims to address this by increasing the percentage of state sales tax allocated to the Public Transportation Trust Fund. However, this increment would only provide PRT with approximately $40 million, far less than the agency's estimated needs. The situation is compounded by the fact that PRT and SEPTA together account for 87% of state transit subsidies, leaving smaller county agencies equally strained. Lawmakers recognize the importance of transit funding but must balance it against other critical areas such as education, which requires substantial additional investment following a court ruling on equitable distribution.

Legislative efforts to secure more funding for transit have faced hurdles. Despite passing multiple times in the House last year, the proposal for increased transit funding stalled in the Senate. Republican leaders have yet to comment on the current budget proposal, raising concerns about its prospects. State Rep. Joe McAndrew emphasized the committee's commitment to preventing service cuts and fare hikes, noting widespread support across the state. He called on Republican leadership to advocate more strongly for Western Pennsylvania's interests. Meanwhile, State Rep. Ed Neilson expressed optimism, citing statewide hearings and backing from business groups as positive steps. He stressed the need for accountability in how additional funds are used, suggesting this could help garner Senate support.

As Pittsburgh Regional Transit prepares its preliminary budget for the coming fiscal year, the agency remains focused on securing stable funding. Spokesperson Adam Brandolph highlighted the ongoing advocacy efforts in Harrisburg to ensure decision-makers understand the critical needs of riders. CEO Katharine Eagan Kelleman warned that severe service reductions would be devastating without adequate funding. While PRT has some reserves, these do not address the long-term funding gap. The agency continues to rely heavily on state and federal support, as fares cover less than 20% of operational costs. With fixed costs like pensions and healthcare consuming a significant portion of the budget, there are limited options for cost-cutting without impacting service quality. Despite the anticipated difficulties, transit agencies remain committed to advocating for their riders and ensuring sustainable public transportation for the future.