PRT unveils new FY27 operating and capital budgets, still face future shortfall

The Pittsburgh Regional Transit (PRT) Board has adopted the agency’s fiscal year (FY) 2027 operating and capital budgets, continuing existing fares and service levels while warning that long-term funding challenges remain unresolved. 

The FY27 operating budget totals $595.7 million and does not include fare increases or service reductions. To balance the budget, PRT says it is using $44.8 million in capital funding and $15.4 million in operating reserves to fund the budget. 

The FY27 capital budget totals $211.6 million and includes $50.9 million in federal funding, $155.5 million in state funding and $5.2 million from county and other capital sources, according to PRT.

The budget reflects the second and final year of the waiver Pennsylvania Department of Transportation (PennDOT) approved in September 2025 that allowed the Southeastern Pennsylvania Transportation Authority (SEPTA) and PRT to use capital funds to support operating expenses. 

Without a sustainable long-term funding solution, however, PRT says its financial outlook remains uncertain. The agency anticipates using the remainder of its operating reserves in FY29. 

“Public transit connects people to jobs, healthcare, education and opportunity every day,” said PRT CEO Katharine Kelleman. “While this budget preserves current service and fares, it also highlights the urgent need for a long-term funding solution that recognizes transit as a critical investment in our region’s economic future and competitiveness.” 

Like many transit agencies across Pennsylvania and North America, PRT continues to face rising operating costs that it says are outpacing revenues. Since 2019, the agency says the cost of providing public transit has increased significantly across nearly every category, including fuel, utilities, parts, materials, insurance and contracted services. At the same time, the agency says that ridership patterns continue to evolve following the pandemic. 

Last year, both SEPTA and PRT warned of potential service reductions and layoffs without additional state support. PennDOT ultimately provided temporary relief through a waiver that allowed agencies to use capital funding to support operations. 

That solution, however, was intended as temporary relief rather than a permanent funding strategy. Like one-time federal relief funding or the use of reserves, shifting capital dollars to support operations delays—but does not solve—the structural funding challenges facing public transportation systems. 

Even as PRT works to manage operating costs and balance its budget, the agency says it must continue investing in critical infrastructure and maintaining a state of good repair.