As Philadelphia’s SEPTA faces a $213 million budget deficit starting July 1, the authority recently announced its Efficiency & Accountability (E&A) Program has recognized $91.4 million in annual recurring new revenue and cost savings.

SEPTA is doubling down on this progress, aiming to be more cost-effective while still delivering reliable services, by launching its next phase of E&A, which is expected to generate $76 million in revenue.

This new plan will be implemented over the next three years, focusing on strategic areas like safety, fare evasion, and joint development.

"As we continue to make the case for funding transit, we understand that self-help must be part of the solution to put SEPTA in the best financial position possible," said SEPTA Board Chair Kenneth E. Lawrence Jr.

SEPTA Cuts Costs Through Employee Innovation, Austerity

Since 2021, according to an authority statement, SEPTA employees have created and implemented 140 cost-saving initiatives to make the authority even more efficient. SEPTA's structural deficit has been reduced from $240 million to $213 million due to the employee program and a series of austerity measures, including:

1. Hiring and pay freeze for management.

2. Reductions in consultant contracts.

3. A ban on travel and all discretionary expenses.

"While we cannot cut our way out of this funding crisis, engaging our employees to help identify opportunities for improved performance demonstrates that we are good stewards of public funds," said SEPTA Interim GM Scott A. Sauer.

Examples of SEPTA's past and future E&A initiatives include:

Deter and Decrease Fare Evasion ($4 millionin potential new revenue)

• SEPTA is combating fare evasion through enhanced policing and new technology and infrastructure.

• As part of this effort, SEPTA Transit Police are conducting new Fare Evasion Enforcement Blitzes at select stations across the system, increasing fare evasion citations and fare revenue.

Maximize Railroad Crewing ($11.3million in savings)

• SEPTA's Regional Rail Engineer and Conductor Training Program addresses critical staffing shortages by replenishing engineer numbers, reducing overtime costs, and enhancing work-life balance.

Maximize Value of Real Estate Assets ($9 millionin potential new revenue)

• SEPTA is building on the success of its Transit Oriented Communities Program by pursuing joint development opportunities to secure better returns on its real estate assets​.

• Building housing and commercial space near SEPTA's stations will encourage ridership and bring economic activity to the communities that SEPTA serves.