PA: Shapiro wants to start talks now on extra transit funding for 2027

fter running into strong opposition the past two years to increasing the state subsidy for transit, Gov. Josh Shapiro is providing a longer runway this year.

In his budget proposal Tuesday, Mr. Shapiro called for the same increase in transit funding that was unsuccessful the past two years: increasing the share of the state's Public Transportation Trust Fund earmarked for transit from 4.4% to 6.15%. The difference is Mr. Shapiro is calling for that change to take place in July 2027 rather than this year.

The trust fund uses state sales tax proceeds that increase every year, and the projection is that it would generate more than $300 million a year in 2027. That failed proposal was among many sticking points that caused last year's budget to be approved more than four months late.

In previous years, the governor called the need for more transit money an emergency because agencies such as Pittsburgh Regional Transit and the Southeastern Pennsylvania Transportation Authority, among others, ran out of the emergency federal money awarded during the pandemic. Last year, agencies were calling for sharp service cuts and layoffs without additional funding.

When that wasn't forthcoming with last year's prolonged budget process, Mr. Shapiro allowed those two agencies to use capital funds to cover operational costs for the next two years. In his Tuesday address, the governor called that effort "a bridge" to give the General Assembly time to provide more transit funding, which hasn't increased in more than 12 years.

"This budget calls for sustainable, recurring funding for mass transit to begin in 2027," Mr. Shapiro said. "I bought us two years, but we have to keep working on this because this isn't a problem we can ignore.

"Mass transit helps to drive our economy and this is an issue of economic competitiveness."

Mr. Shapiro regularly touts that Pennsylvania is the only state in the Northeast with a growing economy and he wants that to continue.

Adam Brandolph, a spokesman for PRT, said top staff was in Harrisburg for the budget address. He had no direct comment on the issue other than to say, "We're happy to see the governor speak about the need for more public transit funding."

If Mr. Shapiro's proposal is approved, it would provide about $50 million extra for PRT's annual budget. That's a far cry from meeting the $117 million deficit the agency had predicted for this year before capital funds were freed for operating expenses.

The state House and Senate also failed to take action on other bills that would have increased transit funding last year and are expected to be introduced again.

Sen. Lindsey Williams, D- West View and a member of PRT's board, co-sponsored a bill that would raise the fee for renting a car in the state from $2 a day to $6.50, raising the fee for leasing a car from 3% to 5% and establishing a 6% surcharge for rides with services such as Lyft and Uber. That proposal, developed by Transit for All PA, would generate $500 million a year.

Rep. Ed Neilson, D- Philadelphia and chairman of the House Transportation Committee, pushed the governor's proposal, but added borrowing $5 billion a year for road and bridge work to satisfy rural legislators. That group has said it is difficult to approve transit funding when 87% of the money goes to PRT and SEPTA.

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