PA: Josh Shapiro and top Democrats say SEPTA and mass transit funding is a priority, but won't say whether they'll hold up the budget over it

The top Democrats involved in negotiating Pennsylvania's state budget have repeatedly said a mass transit funding increase is a priority to them, as SEPTA and transit systems across Pennsylvania face major financial challenges that could result in steep service cuts for millions of residents.

But don't ask them if they would support a budget that excludes it. They won't answer.

Both Gov. Josh Shapiro and House Majority Leader Matt Bradford (D., Montgomery), the top two Democratic negotiators in budget talks, have declined to say whether they would hold up the state budget over mass transit funding, as a top Senate Republican remains the major roadblock to any funding increase for the struggling transit agencies.

The two Democrats still need to persuade Senate Majority Leader Joe Pittman (R., Indiana), the third principal negotiator in the closed-door budget talks, to give SEPTA and other transit agencies across the state a much-needed state funding bump that Pittman has largely refused to budge on. And for Shapiro and Bradford, setting a boundary publicly over SEPTA before reaching an agreement could tank negotiations before they really begin.

Budget talks are expected to be especially tenuous this year, as the state is projected to spend approximately $4.5 billion more than it brings in, if spending is set as Shapiro proposed in his $51.5 billion budget pitch. Lawmakers must find places to cut spending, create new revenue streams, or tap into the state's beefy Rainy Day Fund to finalize a balanced budget by the end of June, as the state constitution requires.

Asked whether he would sign a state budget that does not include mass transit funding, Shapiro said Monday at a news conference that mass transit "is important" but declined to "get into hypotheticals." Bradford had a similar response on transit funding last month, telling reporters "we don't do hypotheticals," and "obviously our goal is to govern."

Shapiro, for his part, has been clear SEPTA funding is top-of-mind for him, even if he would not go as far to say he would draw a line in the budget sand over it, as some public transit advocates urged him to do.

The first-term governor kicked off the month of June — when lawmakers begin dealmaking in earnest ahead of the June 30 budget deadline — with a news conference outside the Capital Area Transit Authority in Harrisburg about the importance of mass transit funding increases for all Pennsylvania communities. He proposed in February a $292 million funding increase for public transportation as part of his budget pitch, which transit advocates applauded. He also flexed $153 million in federal highway funds to prevent SEPTA from dramatically increasing fares.

Bradford has led House Democrats in passing the mass transit funding increase three times, all of which Pittman declined to call up for a vote on the Senate floor. Bradford and other top Democrats, especially those hailing from Philly and Southeastern Pennsylvania, continuously say securing a funding increase and more reliable funding stream is a top priority for them in any final budget deal.

Pittman, meanwhile, has repeatedly said in recent years that Senate Republicans would agree to spend more on transit only if it comes from a new source of state revenue, not the general sales tax. The Senate GOP also wants more for roads and bridges, he has said.

When SEPTA — the state's largest transit system, with more than 223 million riders each year — announced major service cuts and fare increases if the state does not come through with a funding bump, Pittman said in a statement that SEPTA should recognize the state's own budget woes and "come to the table with more modest requests."

"This burden should not be placed entirely on Pennsylvania taxpayers, most of whom do not live within the service region and do not realize any benefit from SEPTA," Pittman said in April.

Closed-door negotiations, with a handful of negotiators

It is likely that Bradford's and Shapiro's comments balking at a budget without mass transit funding are a negotiation tactic to keep Pittman at the table, as they work to strike a deal behind the scenes. If they are able to secure one, it will likely come at a cost to Shapiro and Democrats, allowing another GOP funding priority (or several) to get approved.

Pennsylvania's state budget, in which lawmakers will decide how to spend upward of $50 billion in taxpayer dollars, is negotiated entirely behind closed doors. Only a handful of people are included in those conversations, with Shapiro, Bradford, and Pittman as the main negotiators. And for the two Democrats at the table, it is unlikely that publicly refusing to compromise will persuade Pittman to support the funding increase.

However, Shapiro said Monday he is optimistic that they will find a solution that funds mass transit and infrastructure improvements.

"I think we're going to find a way to solve this problem," Shapiro added.

'This is priority No. 1'

Public transit agencies across the U.S. are facing budget deficits because ridership has dropped, federal aid that kept systems running during the height of the pandemic has run out, and operating expenses are rising fast.

"We've heard strong support [from Democrats], but we need to be reassured that this is priority No. 1," said Connor Descheemaker, statewide campaign coordinator for Transit For All PA!, which is the main organizer for transit users across the state.

"Public transportation is a pillar. It touches on healthcare, mobility, education, and economic opportunity," Descheemaker said.

Organizers say they want to highlight the needs of Pennsylvania's other troubled transit systems sometimes overshadowed by SEPTA's woes, which they say they plan to note at a news conference in the state Capitol building on Wednesday.

Pittsburgh Regional Transit, for instance, faces a $100 million deficit, proportionally larger than SEPTA's, and plans to cut service by 35% and raise fares by 9% absent state help.

LANTA, the bus system in the fast-growing Lehigh Valley, has budgeted for a 20% cut in fixed-route bus service and a 25% fare increase. It projects an $8 million operating deficit.

How Pa. contributes to mass transit funding

State Senate Republicans, who control the upper chamber in the politically divided legislature, have said they would agree to spend more on transit only if the money comes from a new source of state revenue — not the general sales tax, as Shapiro and House Democrats have proposed. Shapiro said Monday he is open to their ideas.

SEPTA, the state's largest transit system, is running a $213 million structural deficit; its woes have drawn most of the political attention.

If it does not get more state money, SEPTA would begin to cut about half its service beginning in August.

First, dozens of bus routes would be eliminated and trips on all rail services would be reduced beginning in late August. Fares would rise 21.5% on Sept. 1.

Next January, five Regional Rail lines would be eliminated, along with more bus routes — 50 in total. All train service would end at 9 p.m. SEPTA staggered the cuts so that some of them might be avoided if the legislature acts in time. Officials say they have no choice but to prepare to wind down service if the state does not come through with funding relief this year.

The commonwealth already provides operations funding for state transit systems from a variety of taxes and fees; SEPTA's share of that is more than $1 billion a year.

Currently, 4.4% of sales tax revenue goes to public transit. Shapiro's proposal would raise that allocation to 6.15% for five years.

Other sources of revenue for public transit include: a $1 fee on every new tire sold in the state; a motor vehicle lease tax of 3% of the lease price; and a motor vehicle rental fee of $2 per day or part of a day.

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