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Shapiro spends $153 million in federal highway funds to stop SEPTA’s ‘death spiral’

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Shapiro spends 3 million in federal highway funds to stop SEPTA’s ‘death spiral’

Gov. Josh Shapiro will speak about SEPTA funding at a news conference at the Frankford Transportation Center in Philadelphia on Friday, Nov. 22. (Capital-Star photo by John Cole)

PHILADELPHIA – Answering the pleadings of public transportation advocates in southeastern Pennsylvania, Governor Josh Shapiro has directed Secretary Mike Carroll of the Pennsylvania Department of Transportation (PennDOT) to immediately transfer $153 million in federal highway capital funds to SEPTA.

“That money will prevent service cuts, and that money will prevent the dramatic fare increases that SEPTA is considering at least until next July,” Shapiro said Friday at the Frankford Transportation Center in Philadelphia. “It will ensure that the people of southeastern Pennsylvania who rely on SEPTA every day do not face higher costs.”

SEPTA officials have been sounding the alarm about the funding problems for months on November 12 proposed increase in rates by more than 20% as of January 1. Although that increase has been averted, a smaller increase of 7.5% will take effect on December 1.

“SEPTA has been in the water for two years now and we were going under, and today Governor Shapiro threw us a lifeline,” SEPTA Board Chairman Ken Lawrence said at Friday’s news conference. “While this announcement today pauses the death spiral and allows us to tread water, we are still in dire need of a permanent, sustainable funding solution for SEPTA and public transit in the Commonwealth of Pennsylvania.”

“While public transit agencies across the Commonwealth are struggling, it is true, and it is undeniable, that there is one agency that will not make it to next summer with the status quo, and that is SEPTA,” Shapiro said before the announcement. .

Shapiro said the federal funds would create a “bridge, some time and space” for the House and Senate to work on an agreement on funding for public transportation across the state.

Carroll said the action Shapiro took Friday was not the first time a governor has shifted funding to public transportation.

“Governor Rendell did that years ago and it led to the passage of a transportation bill,” Carroll said. “And I remain hopeful that that bending, the bending that is taking place today will result in a serious conversation that could result, and hopefully will result in a transportation bill that will land on his desk next June.”

Where the money comes from

After the press conference, Carroll told reporters that money will be transferred from the following interstate projects: I-79 in Mercer County, I-80 in Columbia County, I-95 in Philadelphia County, I-83 York County, two I-80 projects in Jefferson County, and I-70 in Washington County.

“Let me be clear: While these funds will come from seven different highway projects across the state, none of those highway projects are yet under construction. In fact, none of them have even been bid on,” Shapiro said. “They are still far away.”

“And hear me out on this: There’s no reason to keep that money on our balance sheet in the state when we can invest it in SEPTA right now,” Shapiro said.

In addition to redirecting highway funds to SEPTA, Shapiro said he received commitments from each of the five counties that fund SEPTA to increase their local share by millions of dollars.

Local Democratic elected officials were present for the announcement. Some shared anecdotes about how SEPTA has impacted their lives and applauded Shapiro’s move.

“You can’t say you want a pro-growth, pro-business Pennsylvania and you’re willing to let the SEPTA deepening spiral happen because it’s the core of the economic engine in Pennsylvania, in southeastern Pennsylvania.” , said Philadelphia Mayor Cherelle Parker. saying Shapiro “walked the walk” with his announcement.

Legislative response

The Pennsylvania House passed a bill on a bipartisan basis that would have increased transportation funding in the state threefold, although it did not advance in the Senate, which has a Republican majority.

Earlier in the week, Shapiro said the “ball is squarely in the Senate’s court” regarding passing a transit bill, adding that he had agreed to consider combining it with funding for roads and bridges, and regulating and taxing skill games.

But on Friday, Republicans criticized Shapiro’s actions and said their position had not changed.

“Today’s announcement by Governor Josh Shapiro to address the mass transit crisis facing SEPTA is a crisis of his own making,” Senate President Pro Tempore Kim Ward (R-Westmoreland) said in a statement.

“Government. Shapiro and House Democrats prioritized education over public transportation by approving the largest budget increase ever for a traditional education system that continues to trap Philadelphia’s children in failing schools,” Ward added. “The bottom line is that Pennsylvanians – especially those in the Southeast – are losing out, not because of divided government, but because Pennsylvania Democrats have chosen to focus their priorities and spending in one area.”

However, Democrats assured that transportation funding will remain at the top of the agenda in the next session.

“We must continue and be vigilant in this fight. When we return to Harrisburg in January, this will remain at the top of our agenda,” House Speaker Joanna McClinton (D-Philadelphia) said of passing a transportation funding bill.

State Rep. Ed Neilson (D-Philadelphia) is the head of the House Transportation Committee. He told the Capital-Star on Friday that they are looking for a “comprehensive package” for transportation financing that would fund ports, roads, bridges and public transportation.

State Rep. Jordan Harris (D-Philadelphia), who will chair the House Appropriations Committee next session, called federal flex funds for SEPTA “just a stopgap.”

“This is not the end of the road, and we know that,” Harris said, adding that he thinks they will come together in a bipartisan manner to pass a public transportation funding bill.

Senator Vince Hughes (D-Philadelphia) will serve as the minority chairman of the Senate Judiciary Committee during the next session. He also called transit funding “extremely important and a high priority.”

“What you’re seeing here is galvanizing all of Southeastern Pennsylvania, the business community, the workers, the elected officials are all coming together around this system and sending a message that this needs to be addressed,” Hughes told the Capital-Star in a job interview Friday. “And we’re willing to address it, not just out of our self-interest in southeastern Pennsylvania, but we’re willing to address it out of a state-wide interest. Let’s get this done for the entire Commonwealth of Pennsylvania.”

But Senate Majority Leader Joe Pittman (R-Indiana) and Senate Transportation Committee Chairman Wayne Langerholc (R-Clearfield) issued a joint statement saying they have not deviated from their previous position.

“Our Senate Republican Caucus has been clear from the beginning that we will explore transit funding that makes sense and can be justified to Commonwealth taxpayers asked to foot the bill,” Pittman and Langerholc said.

“We reached a bipartisan agreement in July to temporarily fund SEPTA and other transportation agencies in the amount of $80.5 million. The conditions for this funding include a re-examination of the delivery model given the recent reductions in passenger numbers, which are a direct result of Covid, people not working full-time in cities and major safety issues within the system,” she added. “Instead of making careful, sensible changes, they have chosen to politicize and plunder critical infrastructure projects for other districts that are far beyond SEPTA’s reach, ironically with the majority being in Republican districts. ”

State Rep. Martina White is the only Republican currently serving in the Pennsylvania General Assembly whose district is in Philadelphia. As recently as October 22, she voted in favor of a bill that would increase funding for public transportation.

However, she told the Capital-Star that she does not support Shapiro’s spending of federal funds toward SEPTA.

“Diverting federal highway funds from an already underfunded highway system to funding SEPTA is robbing Peter to pay Paul,” White told the Capital-Star. “While public transit funding is undeniably critical, withdrawing funds from our already stressed highway infrastructure is not a sustainable solution.”

“This decision underscores the failure to create a dedicated long-term funding plan for SEPTA, leaving both transit passengers and drivers in Pennsylvania vulnerable,” she added. “Instead of workarounds and last-minute maneuvers, we need real leadership and proactive solutions to address these challenges comprehensively.”

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