SEPTA wants money for new buses, trains and station upgrades in 2027 budget proposal

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SEPTA is proposing a $2.7 billion budget proposal for fiscal year 2027 to begin purchasing roughly 250 new hybrid buses, add taller turnstiles at subway stations and invest in its aging infrastructure, among other things.

Service cuts not on the table

SEPTA is requesting a one-time transfer of capital funds to its operating budget following an emergency approval from the Pennsylvania Department of Transportation. This will keep full service levels going through June 2027.

Last year, SEPTA’s board approved shifting money from its capital budget to cover operating costs and avoid service cuts, as delays in the Pennsylvania Legislature pushed the state budget more than four months past its deadline.

Replacement projects on the MFL, Regional Rail and trolley routes

The budget proposal also aims to invest $80.3 million in its aging fleet of trolleys, Regional Rail and Market-Frankford Line cars.

Trolley and Regional Rail riders dealt with many disruptions to their commutes last year. Five fires broke out on multiple Silverliner IV Regional Rail cars, which are at least 50 years old. The Federal Railroad Administration issued an emergency order leading to more worker training, inspections and the installation of heat-detection systems in the cars.

SEPTA said the proposed 2027 budget would help maintain expanded station cleaning, hire more transit police and roll out other improvements, including a new bus network this fall.

Money for new buses as ‘Bus Revolution’ is finally underway

At least $141.5 million will go toward buses and other vehicles after projects were delayed last year due to the late state budget.

One of those projects includes the purchase of 247 new hybrid diesel-electric buses within three years, as well as an $11 million project to retrofit hybrid buses to run on electric power.

Starting in August, SEPTA will roll out its plan to streamline Philadelphia’s bus routes in exchange for more frequent service on remaining routes. This will be nearly two years since SEPTA first approved the so-called “Bus Revolution.”

​​The plan will roll out in phases, with phase two set to begin in February 2027 and the final portion to be implemented in June.

Savings look decent, but repairs and debt could cause problems

In SEPTA’s budget brief, the transit agency noted “resources have not kept pace with rising construction costs or the needs of a legacy system,” which led to last year’s project delays.

The long-delayed state budget left out funding for public transit, which SEPTA CEO Scott Sauer called “disappointing” as the agency dealt with a $213 million budget deficit. SEPTA said it was able to reduce the operating budget deficit to $192 million by reductions to overtime, contract services, consulting, travel and “other discretionary expenses.”

However, SEPTA’s concerns over funding also collide with ongoing inflation and the constant need for repairs within its system. SEPTA said this has caused costs on its “state of good repair backlog” to go from $5.1 billion to $10.2 billion. To address this, SEPTA will borrow $4.3 billion over the next 12 years.

SEPTA will hold multiple public hearings for people to learn about or weigh in on the budget:

• Operating budget: May 11, 11 a.m. and 7 p.m.
• Operating budget: May 12, 10 a.m. and 4 p.m.
• Capital budget: May 13, 11 a.m. and 7 p.m.