SEPTA's Efficiency & Accountability Program finds $91.4 million in annual recurring new revenue and cost savings

The Southeastern Pennsylvania Transportation Authority’s Efficiency & Accountability (E&A) Program has recognized $91.4 million in annual recurring new revenue and cost savings. The authority is now launching the next phase of E&A that is expected to generate $76 million, as the authority faces a $213 million budget deficit starting July 1. SEPTA says the new plan will be implemented over the next three years and will focus on strategic areas like safety, fare evasion and joint development.  

“As we continue to make the case for funding transit, we understand that self-help must be part of the solution to put SEPTA in the best financial position possible,” said SEPTA Board Chair Kenneth E. Lawrence Jr. 

Since 2021, the authority says that employees from across the organization have created and implemented 140 cost-saving initiatives to make SEPTA even more efficient. The E&A Program, combined with a series of austerity measures – including a hiring and pay freeze for management; reductions in consultant contracts and a ban on travel and all discretionary expenses – reduced SEPTA’s structural deficit from $240 million to $213 million. 

“While we cannot cut our way out of this funding crisis, engaging our employees to help identify opportunities for improved performance demonstrates that we are good stewards of public funds,” said SEPTA Interim General Manager Scott A. Sauer. 

Examples of SEPTA’s past and future E&A initiatives include: 

Deter and decrease fare evasion ($4 million in potential new revenue) 

• SEPTA is combating fare evasion through enhanced policing and new technology and infrastructure. 
• As part of the effort, SEPTA Transit Police are conducting new fare evasion enforcement blitzes at select stations across the system, leading to an increase in fare evasion citations and fare revenue. 

Maximize railroad crewing ($11.3 million in savings) 

• SEPTA’s Regional Rail Engineer and Conductor Training Program is addressing critical staffing shortages by replenishing engineer numbers, reducing overtime costs and enhancing work-life balance. 

Maximize value of real estate assets ($9 million in potential new revenue) 

• SEPTA is building on the success of its Transit-Oriented Communities Program by pursuing joint development opportunities to secure better returns on its real estate assets. 
• The authority notes that building housing and commercial space near its stations will encourage ridership and bring economic activity to the communities the authority serves. 

The full Transformation Office Annual Progress Report can be found on SEPTA’s website.