Pittsburgh Regional Transit’s (PRT) board adopted the agency’s Fiscal Year 2027 operating and capital budgets, preserving current fares and service levels while warning that long-term funding challenges remain unresolved.

The FY2027 operating budget totals $595.7 million and does not include fare increases or service reductions. To balance the budget, PRT is using $44.8 million in capital funding and $15.4 million in operating reserves.

PRT’s Budget

The FY2027 capital budget totals $211.6 million and includes $50.9 million in federal funding, $155.5 million in state funding, and $5.2 million from county and other capital sources.

The budget reflects the second and final year of the waiver PennDOT approved in September 2025 that allowed SEPTA and PRT to use capital funds to support operating expenses.

Without a sustainable long-term funding solution, however, PRT’s financial outlook remains uncertain.

The agency anticipates using the remainder of its operating reserves in FY2029.

“Public transit connects people to jobs, healthcare, education, and opportunity every day,” said PRT CEO Katharine Kelleman. “While this budget preserves current service and fares, it also highlights the urgent need for a long-term funding solution that recognizes transit as a critical investment in our region’s economic future and competitiveness.”

Facing Financial Shortfalls

Like many transit agencies across Pennsylvania and North America, PRT continues to face rising operating costs that are outpacing revenues, officials said.

PRT officials said that since 2019, the cost of providing public transit has increased significantly across nearly every category, including fuel, utilities, parts, materials, insurance, and contracted services. At the same time, ridership patterns continue to evolve following the pandemic.

PRT said it is not alone in facing these pressures.

Transit agencies across Pennsylvania continue to confront structural budget challenges driven by inflation, changing travel patterns, and a decades-old funding structure.

Last year, both the Southeastern Pennsylvania Transportation Authority and PRT warned of potential service reductions and layoffs without additional state support. PennDOT ultimately provided temporary relief through a waiver that allowed agencies to use capital funding to support operations.

That solution, however, was intended as temporary relief rather than a permanent funding strategy. Like one-time federal relief funding or the use of reserves, shifting capital dollars to support operations delays — but does not solve — the structural funding challenges facing public transportation systems, agency officials said.

Even as PRT works to manage operating costs and balance its budget, the agency said it must continue investing in critical infrastructure and maintaining a state of good repair.