Transit death spiral starts with Philadelphia
Most major transit systems are experiencing funding difficulties because of how post-covid work from home (WFH) has affected transit system business models.
-- "Three ideas to save S.F. Muni that have nothing to do with cutting service," "‘There is a real problem’: Bay Area legislators seek to prevent BART and Muni from unraveling," San Francisco Chronicle, "A Last-Ditch Effort to Fund Bay Area Transit Tries to Pick Up Support," KQED/NPR
-- "Chicago ain’t ready for transit reform — yet," Crain's Chicago Business, "llinois lawmakers call for special session to address $771M public transit shortfall," ABC7
-- "As WMATA’s new budget goes into effect, future funding woes remain," Greater Greater Washington
Formerly, there was lots of ridership during M-F community periods, with some ridership at night and on weekends. Now there are fewer riders, which significantly reduces farebox revenues. For bus-based systems fares aren't that significant a funding source. They are for rail.
Philadelphia's transit system, SEPTA, is the closest to the brink. Effective yesterday, they started cutting service ("Phillies fans slowed but not deterred by SEPTA service cuts," Philadelphia Inquirer). From the article:
Ryerson noted the critical — but sometimes overlooked — role that public transportation plays in everyday life.
“If you really think about how you’ve made some big choices — where you live, where your children go to school, where you work, even the frequency at which you go to a Phillies game — all of these choices are shaped around your income, the makeup of your family, and your transportation accessibility,” she said.
The elimination of certain bus routes might force some parents to rethink where their children attend school, Ryerson said, while teenagers could lose a pillar of their independence. Transit cuts can also lead to an increase in people skipping health screenings and vaccinations. “There’s a huge negative impact on public health from not providing that connectivity,” Ryerson said.
The Pennsylvania Legislature is pretty evenly split between Republicans and Democrats, and the Republicans in the Senate aren't interested in long term funding or stability, and have proposed some short term fixes, which the Democrats do not support. So the state hasn't passed a budget, and SEPTA has started cutting service, as it first proposed during initial budget discussions.
-- "Philadelphia transit hits ‘death spiral.’ More cities could follow," Washington Post
SEPTA officials have called it a “death spiral.” The changes to one of the nation’s largest mass transit agencies are expected to hit the poor, elderly and daily commuters the hardest. Many will have to start their commutes earlier and arrive home later.
They have warned of “fiscal cliffs” in which transit systems start cutting services, potentially reducing ridership in ways that necessitates even deeper service cuts. Transit agencies in Chicago, Dallas, Portland and San Francisco all face similar challenges.
SEPTA, which serves about 800,000 riders daily, will curtail service on all bus and rail lines by 20 percent as well as eliminate 32 bus routes on Sunday. The changes are expected to make buses and trains slower and more crowded as well as present new complications for 55,000 Philadelphia students who start school on Monday.But since the pandemic slashed ridership for big city transit systems, officials and transit experts have been raising questions about the sustainability of public transportation that millions of Americans rely on each day.
The cuts this month are just a preview of even more painful reductions in January unless Pennsylvania’s legislature acts soon to help SEPTA close a $231 million budget shortfall. The transit agency will raise fares by about 22 percent on Sept. 1, and reduce service by another 25 percent in January. It will also eliminate five commuter rail lines that service the suburbs as well as Delaware and New Jersey.
-- "SEPTA’s massive cuts are here and it’s ‘bad on so many levels’," Philadelphia Inquirer
SEPTA is cutting 20% of its service; 32 bus lines will be eliminated, including series 400 routes that serve schools, and 16 other routes will be shortened. Buses, trolleys, and subways will reduce the number of trips offered, lengthening waits for riders.
On Sept. 2, Regional Rail service will be reduced. That could mean up to two hours between trains in the midday hours during the week and on weekends.
I never did write a blog entry about how I was impressed with the graphic renditions of what the service cuts would mean. And an infographic they produced on the economic value of transit in Philadelphia to the region and state.
Unfortunately, conservatives tend to be anti-public good, anti-transit, and anti-public investment. They have a hard time thinking about transit as a product and as an economic development tool, or that Philadelphia's economy is important to the rest of the state.
Usually a crisis gets people to finally act, but that hasn't been the case in Pennsylvania.
Chicago's transit system has the same problem, but transfers from other regional transit services have staved off the kinds of cuts that are starting in Philadelphia. ("CTA gets $74M from Metra, Pace to delay 40% service cuts next year," Chicago Sun-Times).
Since the Trump Administration is anti-transit, federal funds aren't something that agencies can try to get to deal with the "fiscal cliff." Transit is an essential foundation of success for large legacy cities, which could not support the number of people and trips by relying on the automobile.
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Never stop building your transit funding sources, it's easier when you are successful, and very hard when you are failing.
This article, "Key Oregon Democrats signal support for public transit, climate-friendly transportation framework." (Portland Oregonian) reminds me of past writings about setting up for success in case of potential failure, using the example of the Rochester NY bus system, which before the Great Financial Crisis, had already established relationships with local institutions, which paid toward transit provision ("Creativity Helps Rochester’s Transit System Turn a Profit," New York Times). So when tax revenues dropped, they had access to other sources.
And the point I make about transit systems, and DC in particular, that the best time to solidify funding agreements are when you are wildly successful. For DC that was within the first 10 years of the launch of Metrorail in 1976 ("WMATA and MWCOG announce new joint transit initiative | Could a regional "transport association" be on the horizon, or just a transit bailout?," 2024, "WMATA Chief says it’s time to talk about a regional tax to help fund Metro (DC area)," 2023).
From the Oregonian:
A group of Democratic lawmakers on Wednesday unveiled a high-level concept for a transportation package that would significantly boost funding for public transit and climate-friendly pedestrian and bicycle infrastructure.
To pay for those needs while also funding basic road and bridge maintenance, Democrats proposed gradually increasing the state’s gas tax from 40 cents to 80 cents per gallon, increasing car registration and title fees, implementing a 2% sales tax on new vehicles and increasing the state’s payroll tax for transit fivefold to 0.5%.
It’s unclear how many of those suggestions will ultimately end up in a transportation package that lawmakers are hoping to pass this legislative session, which must end by late June. But a significant number of Democrats, about 17, have expressed support for the transit and climate related provisions, including three members of the key Joint Transportation Committee.
The basic ideas underlying the new proposal are similar to a more comprehensive transportation funding framework that the Democratic leaders of the Joint Transportation Committee put forward in April. That framework suggested more than 10 tax and fee increases to better maintain Oregon’s roads and bridges as well as shore up funding to public transit, rail and bicycle and pedestrian infrastructure. Those tax hikes included a 20 cent increase to the gas tax and a 1% tax on new vehicle purchases.
Note that the past blog entry, "Metrolinx Toronto: 25 potential tools to fund transit-transportation infrastructure," (2013) lists many different funding sources for transit, based on a study for Greater Toronto's Metrolinx regional transportation authority. I've since added a few in the comments, although the overall entry hasn't been updated. (I haven't compared the ones suggested in the proposed Oregon framework against this list.)
Labels: public finance and spending, transit marketing, transit service, urban design/placemaking, urban revitalization








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Philadelphia’s mass transit cuts foreshadow possible similar moves by other agencies across US
https://apnews.com/article/philadelphia-public-transit-septa-cuts-fc4c5d7c05841b0c249aa0ea969dba9f
All told, SEPTA has warned that it will cut half its services by Jan. 1 and won’t provide enhanced service for major tourist events next year. Those include FIFA World Cup matches in Philadelphia, events surrounding the celebration of the nation’s 250th birthday, Major League Baseball’s All-Star Game, the PGA Championship and NCAA March Madness games.
The Chicago Transit Authority is considering shutting down four of eight elevated train lines and 74 of 127 bus routes under the worst-case scenario as it figures out how to plug a $770 million budget hole.
Pittsburgh Regional Transit is considering a 35% service reduction to help close what it calls a roughly $100 million deficit this year. That could include eliminating 45 bus routes, reducing 54 others and eliminating one of three light rail lines.
The San Francisco-area Bay Area Rapid Transit said it will raise fares Jan. 1 and is using hundreds of millions of dollars in emergency state aid to avoid service cuts.
However, it projects that it will face ongoing deficits ranging from $350 million to $400 million in ensuing years that it said could mean “dire and widespread impacts on the Bay Area’s greater transportation network.”
Dallas Area Rapid Transit is considering what cuts to make as it looks to refund nearly $43 million in revenue to other cities.
https://www.inquirer.com/news/philadelphia/septa-bus-cuts-arts-center-philadelphia-museum-of-art-20250826.html
The arts season is about to begin. Will cuts to SEPTA mean a loss of audiences?
You can see what’s at stake almost any day of the week: Dance students hopping into the subway to and from classes in pointe and pas de deux, ushers and docents on buses to theaters and museums, and Broadway fans taking Regional Rail home after shows.
As cuts to SEPTA service disrupt the livelihoods of healthcare workers and the smooth running of restaurants and other businesses, so do they threaten Philadelphia’s arts and culture sector.
Arts leaders fear that longer and more expensive trips to concerts and exhibitions will take a bite out of ticket sales just as the curtain is about to rise on the 2025-26 arts season.
No one knows exactly how much attendance might suffer, but a recent Greater Philadelphia Cultural Alliance survey found that more than a fifth of theatergoers take public transportation. What if that slice of the audience didn’t show up this fall?
“It’s not 60%, but boy, 20% would be a hit,” said Amy L. Murphy, managing director of the Arden Theatre Company.
SEPTA’s Mann Loop was eliminated as of Sunday, severing a direct route from Center City to and from the Mann Center in Fairmount Park. The service had been popular enough to add a second bus on some nights, said Mann president and CEO Catherine M. Cahill in a statement.
https://www.inquirer.com/transportation/septa-cuts-bus-restored-students-cherelle-parker-20250828.html
Bus routes for students will be restored after Mayor Parker agreed to advance city money to SEPTA
The city has committed to advance some of its $135 million SEPTA subsidy that was originally intended to be dependent on Harrisburg lawmakers boosting funding for the transit agency.
Mayor Cherelle L. Parker announced Thursday that her administration has reached an agreement for SEPTA to use previously allocated city funding to restore service to some bus and trolley routes in areas “where students are most affected by the cutbacks that started on the first day of school this week.”
The restoration of the bus routes, which will take effect Tuesday, is expected to cost approximately $1 million per month, SEPTA spokesperson Andrew Busch said.
https://www.inquirer.com/politics/pennsylvania/josh-shapiro-septa-cuts-state-budget-20250831.html
Why funding SEPTA in a divided Pennsylvania is one of Gov. Josh Shapiro’s biggest tests yet
https://www.inquirer.com/news/pennsylvania/pennsylvania-state-budget-conflict-septa-funding-cuts-20250818.html
The SEPTA funding debate digs up Pennsylvania’s perennial rural-vs.-urban divide
The battle lines in Harrisburg are becoming clear: It’s the Philadelphia region vs. everybody.
NFL Transit Chaos Averted as FanDuel Sponsors Eagles Game Train
https://www.bloomberg.com/news/articles/2025-09-04/fanduel-rescues-fans-from-transit-chaos-ahead-of-nfl-eagles-game
FanDuel is subsidizing train service to the Philadelphia Eagles season home opener, paying as much as $80,000 to get the sports express train line back up and running.
The Southeastern Pennsylvania Transportation Authority, or SEPTA, had cut the service due to severe funding issues after pandemic-era funds dried up and state lawmakers failed to replace them.
The FanDuel sponsorship covers free rides home for football fans, which start at halftime and continue through the end of the service window, while regular fares apply for travel to the stadium.
Philadelphia Transit Cuts Portend ‘Mayhem’ for Commutes and Regional Economy
https://www.bloomberg.com/news/features/2025-09-03/philadelphia-workers-brace-for-economic-pain-as-transit-cuts-begin
A $6 Billion Shortfall Has US Mass Transit Facing a Death Spiral
https://www.bloomberg.com/news/features/2025-04-29/us-mass-transit-funding-crisis-threatens-commuters-travel
The federal government stepped in with $70 billion to get commuter rail and bus service through the pandemic. The funds are running out.
https://www.inquirer.com/politics/pennsylvania/pennsylvania-state-budget-septa-funding-service-cuts-20250912.html
Why there was no deal for SEPTA in Harrisburg after all
After months of strife and with a state budget past due, lawmakers in Pennsylvania’s divided legislature would not reach an agreement on a long-term funding solution for the state’s mass transit. Instead, the discussion would be shelved for two more years, as Gov. Josh Shapiro approved another short-term funding plan, his third in the last two years in office.
Behind the scenes, Shapiro broke the news to SEPTA that a broader transit-funding agreement was not coming. As a short-term fix, he told the transit agency it should request that the Pennsylvania Department of Transportation transfer capital funds toward its operating expenses for two years, according to four sources who were close to the conversations or were briefed on them.
“When someone says they’re not going to do a long-term solution, at some point you’ve got to take Chairman Martin at his word when he said he wasn’t going to do it,” Bradford said in an interview this week.
The short-term fix was an unremarkable end to months of debate — escalating at times to nasty personal attacks — leaving Democratic lawmakers and transit advocates angry with a GOP Senate they view as at odds with Philadelphia, and some disappointed in top Democratic leaders who ultimately were unable to deliver for them.
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The SEPTA funding debate digs up Pennsylvania’s perennial rural-vs.-urban divide
https://www.inquirer.com/news/pennsylvania/pennsylvania-state-budget-conflict-septa-funding-cuts-20250818.html
Not just SEPTA: Public transit is in trouble all across Pennsylvania, including in GOP districts
https://www.inquirer.com/politics/inq2/pennsylvania-transit-agencies-state-funding-20250618.html
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