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Assumptions, Budget Summary & Projections
| FY 2026 BUDGET | FY 2027-FY 2031 PROJECTIONS |
|---|---|---|
FARES | - Absorbs an unbudgeted fare increase of 7.5% that was implemented on December 1, 2024; adds a new proposed fare increase of 21.5% effective September 15, 2025, for a total fare increase of 29% compared to the FY 2025 Budget. | - As recommended by the Pennsylvania Transportation Funding and Reform Commission in 2006, the authority has implemented a program of periodic fare adjustments. The goal is to grown passenger revenue at a modest level to keep pace with the rate of inflation via fare increases every three years. |
REVENUE | - 10.7% increase in total revenue from FY 2025 budget, driven by fare increases, continued full funding of SEPTA’s Shared Ride Program in partnership with the City of Philadelphia and PennDOT, growth in Other Income from restoration of parking fees and advertising, and incremental annual declines in investment income from reduced interest rate assumptions. | - Annualized organic growth of 1.0% for fixed-route passenger revenue. |
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| FY 2026 BUDGET | FY 2027-FY 2031 PROJECTIONS |
|---|---|---|---|
SERVICE |
| - Fully restored service levels on all Bus, Metro, and Regional Rail, unimpacted by previously proposed service cuts.
| - Fully restored service levels on all Bus, Metro, and Regional Rail, unimpacted by previously proposed service cuts. |
EXPENSES | Total | - 5.8% increase from FY 2025 budget. | - Annualized growth averaging 2.6%. |
| Labor & Fringe | - 6.0% increase from FY 2025 budget, driven by contractual labor agreements and increasing cost of medical and prescription benefits. | - Annualized growth of 5.7%, driven by contractual labor agreements, increasing benefit costs, and gradual reduction in the historically high number of vacancies, offset in part by Efficiency & Accountability initiatives to reduce fringe benefit costs. |
| Materials & Services | - 0.3% decrease from FY 2025 budget, driven by continued implementation of strict Austerity Program as well as ongoing implementation of the Efficiency & Accountability Program, offset by significant increases in paratransit contract costs, Amtrak fees, IT service fees, and material inflation. | - Annualized growth of 2.2%, driven by expectation that the current inflationary cycle will continue and that cost-savings measures associated with SEPTA’s Austerity and Efficiency & Accountability Programs will continue to be implemented for an offsetting effect on growth. |
| Injury & Damage Claims | - 1.3% increase from FY 2025 budget, driven by increased claims associated with gradual ridership recovery. | - Annualized increase of 1.0%, driven by expectations that claims will increase proportionately to the rate of continued ridership recovery. |
| Propulsion Power | - 25.5% increase from FY 2025 budget, driven by significant increase in electricity demand (PECO) and capacity (PJM) prices. | - 3.0% annualized growth coupled with expectations for increased expenses for electricity in the PECO/PJM service territory. |
| Vehicle & Facility Rental | - 7.0% decrease from FY 2025 budget, driven by Efficiency & Accountability Program initiatives to reduce rental expenses. | - 1.0% annual reductions tied to belt-tightening Efficiency & Accountability Program initiatives to reduce ongoing rental expenses. |
| Fuel | - 3.1% decrease from FY 2025 budget, driven by a successful energy commodity risk management approach to price hedging, slightly lower service levels, and savings from implementation of Sustainability Initiatives such as new Hybrid-Electric buses, and Efficiency & Accountability Program initiatives, such as eco-mode features on buses. | - Decrease of 2.0% per year to account for savings from implementation of Sustainability Initiatives such as new Hybrid-Electric buses, and Efficiency & Accountability Program initiatives. |
| Depreciation/ Contributed Capital | - 27.6% decrease from FY 2025 budget, driven by a contributed capital credit associated with SEPTA’s Infrastructure Safety Renewal (ISRP) Capital Program. | - Annualized growth of 3.0%, with the ISRP contributed capital continuing for the useful life of the assets. |
| FY 2026 BUDGET | FY 2027-FY 2031 PROJECTIONS | |
|---|---|---|---|
SUBSIDIES (PLEASE REFER TO THE “SUBSIDY ALLOCATION & DETAIL” SECTION FOR MORE INFORMATION) | FEDERAL | - 2.4% increase from FY 2025 budget, reflecting slight growth in federal support for capital leases and debt service; budget assumes no additional highway pass-through funds are available. | - One-year spike in FY 2027 reflecting expected capital transfer from federally funded capital projects; annualized growth averaging 6.0% thereafter, reflecting expectations of increases in federal subsidy of capital lease expenses, such as Amtrak trackage rights. |
| STATE | - 2.4% increase from FY 2025 budget, reflecting formula-based Operating Assistance from Section 1513 of the Pennsylvania Public Transportation Trust Fund, capital transfer from Section 1514, and other state-based subsidies for lease cost and debt service. | - A sustained increase in Operating Assistance from Section 1513 beginning when capital transfer funds run out in FY 2028. |
| LOCAL | - Local match of 15% on State Section 1513 operating assistance and 3.3% on State Section 1514 capital transfer funds, plus additional matching support for capital leases and debt service subsidy. | - Ongoing local match of 15% on State Section 1513 operating assistance, including a sustained increase in FY 2028 plus additional matching support for capital leases and debt service subsidy. |
FY 2026 Consolidated Budget and FY 2027 – FY 2031 Financial Projections
BUDGET | PROJECTIONS | |||||
TOTALS IN $000s | FY 2026 | FY 2027 | FY 2028 | FY 2029 | FY 2030 | FY 2031 |
REVENUE | ||||||
PASSENGER REVENUE | $304,978 | $308,028 | $311,108 | $357,774 | $361,352 | $364,966 |
SHARED RIDE PROGRAM | 26,914 | 27,183 | 27,455 | 27,730 | 28,007 | 28,287 |
OTHER INCOME | 47,163 | 47,635 | 48,111 | 48,592 | 49,078 | 49,569 |
INVESTMENT INCOME | 17,194 | 17,022 | 16,852 | 16,683 | 16,516 | 16,351 |
TOTAL REVENUE | $396,249 | $399,868 | $403,526 | $450,779 | $454,953 | $459,173 |
EXPENSES | ||||||
LABOR & FRINGE BENEFITS | $1,275,178 | $1,312,150 | $1,350,203 | $1,389,372 | $1,429,691 | $1,471,190 |
MATERIALS & SERVICES | 411,391 | 425,484 | 432,645 | 440,758 | 449,265 | 459,128 |
INJURY & DAMAGE CLAIMS | 28,892 | 29,181 | 29,473 | 29,767 | 30,065 | 30,366 |
PROPULSION POWER | 38,454 | 39,608 | 40,796 | 42,020 | 43,280 | 44,579 |
FUEL | 28,909 | 28,330 | 27,763 | 27,208 | 26,664 | 26,131 |
VEHICLE & FACILITY RENTAL | 7,198 | 7,125 | 7,055 | 6,985 | 6,914 | 6,844 |
DEPRECIATION | 20,132 | 20,736 | 21,358 | 21,999 | 22,659 | 23,339 |
TOTAL EXPENSES | $1,810,154 | $1,862,614 | $1,909,293 | $1,958,109 | $2,008,538 | $2,061,577 |
DEFICIT BEFORE SUBSIDIES | $(1,413,905) | $(1,462,746) | $(1,505,767) | $(1,507,330) | $(1,553,585) | $(1,602,404) |
SUBSIDIES | ||||||
FEDERAL | $55,517 | $351,896 | $63,218 | $67,110 | $71,388 | $75,984 |
STATE | 1,180,946 | 965,585 | 1,247,992 | 1,246,338 | 1,281,243 | 1,319,344 |
LOCAL | 170,997 | 138,820 | 188,112 | 187,437 | 194,509 | 200,631 |
OTHER | 6,445 | 6,445 | 6,445 | 6,445 | 6,445 | 6,445 |
TOTAL SUBSIDY | $1,413,905 | $1,462,746 | $1,505,767 | $1,507,330 | $1,553,585 | $1,602,404 |
SURPLUS/(DEFICIT) | $- | $- | $- | $- | $- | $- |