For those who dismiss SEPTA’s $213 million budget deficit as “Philadelphia’s problem,” it’s time for a reality check.
SEPTA’s fiscal crisis is a problem for every Pennsylvanian, and we must support a state funding solution to keep the trains, buses and trolleys rolling. Without changes to the state budget, SEPTA will be forced to hike fares by 21.5 percent and begin a 45 percent service reduction this summer. In January, the trains that gave the Main Line its name will no longer operate, and our region’s rails and subway will be on a 9pm curfew.
The impact on our region is staggering and has statewide implications.
Listen to the audio edition here:
With nearly 800,000 rides a day, SEPTA powers the region’s workforce — connecting people to jobs, schools and opportunity. Brandywine, along with our fellow commercial property owners, have invested in the region’s future. While estimates vary, between 50 to 85 percent of Center City workers use SEPTA daily, so we worry about the immediate impact of SEPTA’s service cuts on people who work in Center City.
Every $1 invested in public transportation generates approximately $4 in economic returns.
Brandywine Realty Trust has long believed — and invested in — the transformative power of transit-oriented development. This is most obvious at Schuylkill Yards, where tenants have access to all modes of SEPTA transportation. But transit-oriented is also true in Radnor, where employers can leverage the regional rail to get to their offices and we run a shuttle to encourage ridership.
Non-riders will feel the pain, too. When the Paoli-Thorndale and Cynwyd Regional Rail lines stop running in January, residential property losses will hit hardest along the Main Line — not the heart of the city. Research shows a $20 billion loss in residential property value if SEPTA cuts are enacted.
Commercial properties in both the city and the suburbs will also lose value, further reducing tax revenues across the region. And quality of life throughout the region will suffer — everything from hospitals and healthcare to restaurants and even Philadelphia International Airport, as employees of these vital places struggle to get to and from work every day (and night).
Research shows a $20 billion loss in residential property value if SEPTA cuts are enacted.
Furthermore, the most likely alternative transit for SEPTA riders is driving, which will significantly reduce air quality given an estimated 40 million additional car trips per year. No matter where you live, do any of us need to deal with more traffic every day?
And all this occurs just as our city and region prepares to welcome the world for major events in 2026: the FIFA World Cup, PGA Championship, the MLB All-Star Weekend, and celebrations marking America’s 250th birthday. We cannot afford to show the world Philadelphia is in retreat. Rather, this moment should highlight Philadelphia’s enormous potential and limitless possibilities.
Slowing down SEPTA is the wrong message at the worst time, as we’re still recovering from the pandemic. Pennsylvania is a slow growth state. Philadelphia has the lowest job growth rate of the 10 largest U.S. cities. Labor pool mobility is an essential foundation for job creation. Weakening our transit infrastructure makes our region less competitive, especially for the high-value employers and skilled workers who fuel innovation and growth.
Southeastern PA drives 42 percent of the Commonwealth’s economy and tax base, which translates to $17.8 billion in annual state and local tax revenues for PA’s General Fund. SEPTA’s economic reach goes even further, with supplier contracts and investments supporting jobs in more than half of PA’s 67 counties.
The cost of doing nothing is nearly three times as high as the cost of funding SEPTA. This makes no fiscal sense for the Commonwealth.
A recent economic analysis of SEPTA’s fiscal crisis shows that the proposed service cuts and fare hikes would result in the loss of $674 million in state and local tax revenues, plus the projected loss of more than 5,300 jobs in the Southeast over the next four years. Inversely, studies have shown that every $1 invested in public transportation generates approximately $4 in economic returns.
Put simply, the cost of doing nothing is nearly three times as high as the cost of funding SEPTA. This makes no fiscal sense for the Commonwealth.
Our goal should not simply be to have SEPTA survive, but rather to make it thrive! To accelerate our growth rate, attract more employers, and create more jobs, we must enhance assets that drive economic growth — and SEPTA is one of the Commonwealth’s strongest economic engines.
Everyone in PA must urge our elected officials in Harrisburg to support additional funding SEPTA to keep this vitally important service working for the benefit of all of us.
Gerard H. Sweeney is President and Chief Executive Officer of Brandywine Realty Trust.
The Citizen welcomes guest commentary from community members who represent that it is their own work and their own opinion based on true facts that they know firsthand.
MORE ON SEPTA’S LATEST FUNDING CRISIS
