in Philadelphia transit the system will increase fares by 21.5 percent starting New Year’s Day and may reduce services next summer.

The Southeastern Pennsylvania Transportation Authority (SEPTA) announced the news Tuesday in the face of a severe situation. financial deficiencies.

Fare changes could bring a one-time fee of $2 bus or SUBWAY trip to $2.90, with SEPTA projecting the fare hike could add $45 million annually budget until 2026.

Roads to ticket prices could come sooner than the new year — under SEPTA’s proposal, in addition to next year tariff increasea separate interim fare increase of 7.5 percent will be considered by the SEPTA board this month and, if passed, would take effect Dec. 1.

SEPTA, the sixth largest transit system in United Statesreported an annual budget deficit of $240 million, exacerbated by the phasing out of COVID-19 pandemicfederal aid from the era and the loss of significant state funding.

“This is the beginning of what I’ve said is the death spiral in transit,” said SEPTA Chief Operating Officer Scott Sauer.

‘Painful’ for customers, SEPTA chief says

The last time SEPTA raised fares was in 2017, with the authority stressing that the proposed increases are essential to its survival.

this year, Pennsylvania The state legislature is deadlocked Democratic Governor Josh ShapiroHis proposal to allocate $283 million to public transit, instead passing a $46 million one-time allocation to SEPTA. State SenateHis decision cost SEPTA nearly $161 million in expected funds.

For rail riders, who currently pay between $3.75 and $6.50 depending on their area, would see fares rise to a range of $5 to $8.75 on January 1.

“It’s painful and it will be painful for our customers,” Sauer said.

Overview of Philadelphia’s proposed transportation discounts

SEPTA is also preparing for a series of service cuts to take effect on July 1, 2025, pending approval by its board, which will vote on the measures on Dec. 19 after a public hearing. hearing scheduled for December 13.

The proposed cuts would eliminate or consolidate certain buses and trolleys ROUTES and reduce the frequency of bus, trolleybus, metro and regional rail services.

SEPTA estimates the cuts could save $92 million in the first year, with additional savings projected in future years through possible infrastructure changes.

“These types of service cuts will save us money,” Sauer said, “but they come at a huge cost to the people who depend on SEPTA every day.”

Possible strike by the Transport Workers Union

The announcement comes amid strained labor negotiations with Transport Workers Union Local 234, which represents about 5,000 SEPTA employees, from bus operators to mechanics and cashiers.

After their one-year contract expired last Friday, union members authorized a strike. As talks progress, they have yet to adopt a work stoppage.

Their main concerns center around the lack of the salary increase presented in the transportation authority’s original proposal, along with a shortfall in safety provisions for workers who face abuse and harassment on a daily basis.

“We haven’t reached an agreement, but there’s been enough movement for us to continue talking and we’re not going on strike yet at this point,” union president Brian Pollitt said last week.

“We are by no means taking the possibility of a strike off the table as we continue to fight for the best possible deal that addresses our safety and economic concerns.”

This article includes reporting from the Associated Press.