Philadelphia’s SEPTA is proposing a total budget of $2.7 billion for Fiscal Year 2027 — a $1.84 billion Operating Budget and $920.7 million Capital Budget.

The plan represents an increase of just 1.9% over the current year, and includes investments in new buses, more full-length fare gates, and other enhancements for customers.

In Need of A Long-Term Solution

The proposal does not include fare increases or service cuts; however, without a long-term funding solution, SEPTA officials said the authority’s future “remains uncertain.”

The proposed budget reflects the second and final year of the $394 million capital funds transfer approved by PennDOT to support operations.

Thanks to ongoing austerity measures, SEPTA officials report the authority has realized close to $30 million in annual savings, in addition to increased income from advertising, parking, and investments. The efforts have reduced SEPTA’s structural budget deficit from $213 million to $192 million.

“By using the resources we receive even more efficiently, we continue to do more with less and reinforce our commitment to being good stewards of taxpayer dollars,” said SEPTA GM Scott A. Sauer. “With stable, dedicated funding, SEPTA can transform into a modern, best-in-class transit system that strengthens communities, supports the economy, and keeps southeastern Pennsylvania moving.”

Continuing to Impact the Community

SEPTA has demonstrated meaningful progress in safety, reliability, cleanliness, ridership recovery, and fiscal discipline — all during one of the most challenging years in its history. At the same time, the authority is making improvements to the system that directly benefit riders, including the New Bus Network, reported officials.

The $920.7 million proposed Capital Budget is part of a $16.3 billion 12-year Capital Program. It dedicates $7.7 billion to fleet replacement for trolley cars, L [Market-Frankford Line] cars, and Regional Rail cars. SEPTA can also restart its bus fleet replacement in Fiscal Year 2027, thanks to the lower structural deficit.

However, the Capital Program relies heavily on debt to fund critical railcar replacements, with a plan to borrow $4.3 billion over 12 years. The debt-heavy program does not have the capacity to fully fund the replacement of the B [Broad Street Line] cars, which are approaching 50 years old, said SEPTA.

Meanwhile, SEPTA said its state-of-good-repair backlog has doubled over the past decade to $10.2 billion, undermining system reliability and driving up future repair costs. SEPTA’s Capital Budget remains between one-third and one-half of the capital funding provided to peer transit agencies.