Yonah Freemark’s Post

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Lead, Practice Area on Fair Housing, Land Use, and Transportation at Urban Institute

Philadelphia's SEPTA—a major public transit agency that serves hundreds of thousands of riders a day—is threatening to increase fares by 29% and reduce service by 20% starting in January https://lnkd.in/eJGwGmfe. This would be devastating for the city's transit riders. The problem SEPTA is facing is that it has a major budget gap, the state legislature hasn't filled the gap, and federal support has run out. Put all these things together, and you end up with a "fiscal cliff." Unfortunately, many transit agencies will face this predicament in the coming years. At Urban Institute, Lindiwe Rennert, PhD and I put together a big paper on how transit agencies might consider surmounting this fiscal cliff: https://lnkd.in/eFrXvxEc One idea we have could be applied to SEPTA and also most transit agencies around the country: "Flexing" federal highway dollars for transit. We diagram that out below. Basically, the federal government allows states to use the funding they receive from the Federal Highway Administration for transit uses. This could help cover SEPTA's budget gap, at least for now (though other funding sources are likely needed). It's also something that other transit agencies should be talking with their state governments about doing!

  • SEPTA could increase its operations budget by 23% if the state "flexed" its federal highway dollars toward funding capital investments in transit.
Mario Iacobacci, PhD

Partner leading Transportation and Infrastructure Economics, Labour Market Economics and all other topics worthy of the Queen of Social Sciences

1mo

In the medium to longer term, other solutions will be required, including finding new ways to boost ridership (other than just low fares or quality service) and achieving operating efficiencies (not sure why outsourcing is not discussed her ... when it is so prevalent in Europe).

Dan Hoffman

Semi-retired, Full-time Grandpa

1mo

This is a transit policy failure, but it is also a municipal/state housing policy failure. City could, but refuses to consider policies that would partner with institutional employers, high tech employers, employers of recent and often in debt college grads, and themselves, including unions and pension funds to help recruit and retain needed public safety and educational staff bringing their disposable incomes into this and other areas in need of new housing investment. Targeting activity in this way would also relieve some pressure on the general moderate income market. Ultimately little can happen when visionlessness, refusal to learn anything and cowardness are administration watchwords.

Jesse Elam

Director of Strategic Planning and Policy at Cook County Department of Transportation and Highways

1mo

Flagging 23 U.S.C. 149(m)(2) which, as modified in the Bipartisan Infrastructure Law, appears to say that if CMAQ was used for any purpose by a transit agencies in 2012, it could now be used to provide operating assistance to that agency. Furthermore, the operating assistance could be for existing service, not just for new service, which is a typical restriction on using CMAQ for operating funding. However, a time limitation on the use of CMAQ still seems to apply, at least for larger urban areas. Would be interested to know who is using this exception...

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Stephen Wickens

Mostly retired Transportation Researcher and Urban Affairs Journalist

1mo

Not just devastating for Philadelphia's transit riders, but devastating for Southeast Pennsylvania as a whole. Death spirals are easy to start and really, really difficult to reverse. You cannot have a healthy large metro area without serious commitments to quality public transit. Period!

Eyal S.

Expert in Urban Cycle Logistics & e-Cargo Bikes, Tactical Urbanism, Micro Mobility & Sustainable Urban Mobility, Human Scale Urban Planning..

1mo

Yonah Freemark well, if you invest in subsidizing electric cars, you're left with no budget to support public transit Gabe Klein Mohamed Mezghani Karel Martens (he) #ev #electric_cars #publictransit #publictransport #TransporJustice #TransportationJustice

Lovell Ong

Business Development Manager | Transit Systems | USA and Canada | I also share insights about building and nurturing partnerships

1mo

It’s scary to think that if service is reduced, it would lead to a death spiral. Customer’s experience would take a big hit despite the agencies spending the years after Covid gaining them back.

Matthew Green

Senior Court Clerk at New York State Courts

1mo

I wish SEPTA the best of luck. They are facing declining ridership and a hostile reception from the state legislature, which primarily represents suburban and rural interests elsewhere in the state.

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Steve Strauss

Executive Director, Empire State Passengers Association

3w

Governor Shapiro just did this, but it is a stop gap action and he's using it to pay operating costs rather than transit capital. Not a multi-year solution at all.

Dan Hoffman

Semi-retired, Full-time Grandpa

1mo

And in a great carom shot sink the Sixers arena. Will be interesting to see how Shapiro addresses all of this, as clearly Philly and SEPTA as it is currently constituted cannot.

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Gov Shapiro can do this independently, correct?

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