Court order prevents further SEPTA service cuts, requires restoration of service

The Southeastern Pennsylvania Transportation Authority (SEPTA) must cease and desist all ongoing route cuts and service reductions, as well as any planned cuts and reductions, according to a court order.  

NBC10 Philadelphia obtained the order issued Sept. 4 by Common Pleas Court Judge Sierra Thomas-Street, which stated that SEPTA must halt “service cuts, including bus route eliminations, Regional Rail eliminations, service reductions, special service eliminations, curfews, paratransit route eliminations or reductions and station closures.”  

The order sides with the plaintiffs who are suing SEPTA. In a lawsuit filed Aug. 27, the plaintiffs argued “SEPTA’s service cuts will disproportionately impact minority and economically disadvantaged communities.” 

Notably, the judge’s order does not prevent SEPTA from implementing its planned fare increases. However, the order also states that the authority must discontinue “any and all other actions currently underway or soon to be underway in connection with the service cuts,” including layoffs and furloughs.  

This most recent court order follows a ruling issued Aug. 29 that prevented SEPTA from moving forward with its 21.5% fare increase and 20% Regional Rail service cut that was planned for Monday, Sept. 1.  

SEPTA financial future still uncertain 

While the court order prevents the anticipated “doomsday spiral,” the authority is still left with addressing its $213 million recurring budget deficit. SEPTA has attributed the deficit due to a combination of federal COVID-19 relief funding drying up and increased day-to-day operations costs.  

The authority has explained that while ridership has increased in recent years, costs have also increased due to challenges such as crime, disorder and vulnerable populations. SEPTA has said it also grapples with the impact of inflation on everyday necessities such as fuel, power and supplies. 

With these challenges in mind, on Sept. 3, Moody’s Ratings revised its outlook for the authority from stable to negative due to “constraints on SEPTA's ability to balance its budget amid the commonwealth of Pennsylvania's protracted budget impasse,” as well as the above court ruling. However, Moody’s affirmed its Aa3 ratings on SEPTA’s “$501 million of Asset Improvement Program revenue bonds and $42 million Public Transportation Assistance Fund revenue bonds,” as well as “the A3 ratings on the authority's $138 million outstanding capital grants receipts bonds.” 

In a statement issued Aug. 28, SEPTA General Manager Scott Sauer said the authority remains hopeful the state Legislator will come to a funding agreement. 

“We are continuing to work with [Pennsylvania] Gov. [Josh] Shapiro and legislative leaders as they negotiate a funding solution,” Sauer said. “It was encouraging to see proposals from the House and Senate earlier this month that share a number of points of agreement. We are urging everyone to continue to build on this common ground in an effort to get a transit funding agreement done.”