12 Reasons Why We Shouldn’t Bail Out SEPTA

As Commonwealth Foundation outlined in our “Mass Transit Bailout” fact sheet, the Southeastern Pennsylvania Transportation Authority (SEPTA) and other mass transit agencies should not rely on state funds to bail out their failing, fiscally irresponsible systems.

Here are a dozen reasons why a mass transit bailout makes little sense:

1. Pennsylvania already has a $3.5 billion deficit that will drain reserves and result in tax hikes.
2. Despite funding increases, mass transit ridership is way down, at 73 percent of pre-pandemic levels.
3. No one rides SEPTA—not even its own board members.
4. Mass transit agencies already get billions from Pennsylvania taxpayers—and from charges on drivers who don’t use mass transit.
5. SEPTA and the Pittsburgh Regional Transit get more funding from state taxpayers and less from riders than most mass transit agencies nationwide.
6. The Public Transportation Trust Fund has a $2.3 billion surplus.
7. SEPTA hasn’t adjusted routes based on rider needs for 60 years!
8. SEPTA has given $50 million to a company owned by the Chinese government for non-existent railcars.
9. Voters overwhelmingly oppose a mass transit bailout: Only 35 percent of Pennsylvanians support Gov. Josh Shapiro’s proposed bailout.
10. SEPTA continues to struggle with safety and quality of life violations, creating an unsafe environment for workers and riders alike.
11. SEPTA will waste an incredible $230 million developing a new key card system after spending $285 million on the last one—which doesn’t even work.
12. SEPTA is paying more than $400,000 in compensation for its former CEO, who left the entity last year. This is further evidence that SEPTA is a cesspool for patronage jobs and nepotism.

Lawmakers must resist calls to use state funds to bail out SEPTA and other struggling mass transit agencies. Instead, lawmakers should challenge these agencies to better serve their customers by making state funding conditional.

Requiring mass transit agencies to adopt market-based approaches—e.g., streamlining operations, increasing reliance on user-based charges, and mitigating crime—will create a safer, cleaner, more-efficient public transportation system. Any additional state support should be directed to working-class residents who rely on public transportation through fare vouchers to offset increased costs.