The board at Philadelphia’s SEPTA approved a total budget of $2.7 billion for Fiscal Year 2027 — a $1.84 billion Operating Budget and $920.7 million Capital Budget.

The spending plan represents an increase of just 1.9% over the current year and includes investments in new buses, additional full-length fare gates, and other customer enhancements.

SEPTA officials said there will be no changes to service levels or fares.

The operating budget reflects the second and final year of the $394 million in capital funds that PennDOT transferred to support operations. Without a long-term funding solution at the state level in the coming year, SEPTA said its future remains uncertain.

“SEPTA continues to demonstrate meaningful progress in safety, reliability, cleanliness, ridership recovery and fiscal discipline,” said SEPTA Board Chair Kenneth E. Lawrence Jr. “The budget we approved today reflects SEPTA’s ability to be good stewards of taxpayer dollars and worthy of stable, dedicated funding.”

Thanks to ongoing austerity measures, SEPTA has realized close to $30 million in annual savings, in addition to increased income from advertising, parking, and investments. These efforts have reduced SEPTA’s structural budget deficit from $213 million to $192 million.

The budget also includes the required local match on state funding from the City of Philadelphia and Bucks, Chester, Delaware, and Montgomery Counties.

Additionally, the City’s Fiscal Year 2027 budget, passed earlier this month, maintains funding for two important initiatives — the City’s Zero Fare program for low-income Philadelphians and continued participation in SEPTA Key Advantage.

 “We are grateful to Mayor Parker and Philadelphia City Council for strengthening these unique partnerships,” said SEPTA GM Scott A. Sauer. “The progress we have made over the past year demonstrates how SEPTA is delivering for its riders and the communities we serve, and this budget creates the foundation for SEPTA’s future.”

The 12-year Capital Program allocates funds to advance critical infrastructure and vehicle-replacement investments, including Trolley Modernization, the purchase of new L cars, and station accessibility projects.

SEPTA can also restart its bus fleet replacement in Fiscal Year 2027, thanks to a lower structural deficit.

However, this Capital Program relies heavily on debt to fund critical railcar replacements, with a plan to borrow $4.3 billion over 12 years. The debt-heavy program lacks the capacity to fully fund the replacement of the B cars, which are approaching 50 years old.

Meanwhile, SEPTA’s state-of-good-repair backlog has doubled over the past decade to $10.2 billion, undermining system reliability and driving up future repair costs. SEPTA’s Capital Budget remains between one-third and one-half of the capital funding provided to peer transit agencies.

SEPTA’s board also approved the Authority’s Five-Year Strategic Plan — a roadmap for how SEPTA moves from back-to-basics to best-in-class — defining the goals, actions, and performance indicators that will guide SEPTA’s work and investments over the next five years.

The plan builds on real progress. Ridership has grown for four consecutive years. Serious crime has fallen to its lowest level in a decade. Missed bus trips have dropped by nearly half. The Authority is also in the midst of the largest fleet modernization in a generation. SEPTA’s Five-Year Strategic Plan sets a clear direction for what comes next.