In light of impending SEPTA reductions and delayed state finances looming over Philadelphia residents and schools, no urgency is evident for a budget in Harrisburg.
The budget negotiations for Pennsylvania's 2025-26 fiscal year are still unresolved, with key disagreements delaying final approval. As of early August 2025, the House has passed a $51.5 billion spending plan, including increased funding for low-income school districts and mass transit services like SEPTA, but the Senate has yet to advance its own proposal[1][4].
Mass Transit Funding at Risk
The impasse in budget negotiations threatens the funding of Pennsylvania's mass transit systems, including SEPTA. The House budget includes approximately $292.5 million for mass transit statewide, but without a passed budget, SEPTA faces the risk of critical funding cuts that could disrupt service[4].
SEPTA's forthcoming service cuts and fare increases are set to go into effect on Aug. 24, just before the Philadelphia School District's first day of school on Aug. 25, unless a state budget deal includes additional funding for mass transit[2]. These cuts will significantly affect approximately 105,000 public school students in Philadelphia who are eligible for transportation, with about 95,000 of them relying on school or SEPTA busing, including 52,000 who rely on SEPTA[5].
Financial Struggles for Philadelphia Schools
The Philadelphia School District, which is dependent on local and state government for the bulk of its funding, is closely monitoring the delayed state budget. The district is projecting a structural deficit, absent more funds from the city and state[6]. In the meantime, the district has 32 bus chauffeur and driver vacancies[7].
Schools in the region are figuring out how to start the school year without payments from the state, and district and SEPTA officials are scheduled to speak next week to discuss school-year logistics[7]. Families of transportation-eligible students can opt out of SEPTA or school busing and instead receive a $300-per-month stipend for driving their children to school themselves[5].
Budget Disagreements and Delays
Disagreements remain on major issues, including mass transit funding, how to regulate and tax skill games, and more. Governor Shapiro proposed funding new initiatives partly by tapping the state Rainy Day Fund and by legalizing and taxing adult-use cannabis and skill games. While the House has passed a cannabis legalization bill, the Senate has focused on skill games taxation, and neither proposal has been agreed upon, contributing to budget uncertainty[1][2].
Governor Shapiro expressed frustration over the slow pace of budget negotiations during a news conference at a coffee shop in Mifflin County[8]. The state budget is three weeks late, and there is still no deal in sight[8]. District leadership is preparing multiple contingency plans to continue providing students with necessary tools and resources[7].
References
[1] Pennsylvania Capital-Star. (2025, August 3). Pennsylvania's budget battle: Here's what's at stake. Retrieved from https://www.penncapital-star.com/2025/08/03/pennsylvanias-budget-battle-heres-whats-at-stake/
[2] WESA. (2025, August 2). SEPTA Service Cuts And Fare Increases Loom As Pennsylvania Budget Negotiations Drag On. Retrieved from https://wesa.fm/2025/08/02/septa-service-cuts-and-fare-increases-loom-as-pennsylvania-budget-negotiations-drag-on/
[3] Philly Voice. (2025, July 29). SEPTA posts signs detailing service cuts, fare increases at Regional Rail and bus stops across the region. Retrieved from https://www.phillyvoice.com/septa-posts-signs-detailing-service-cuts-fare-increases-regional-rail-bus-stops-across-region/
[4] The Philadelphia Inquirer. (2025, July 30). Pa. budget impasse threatens SEPTA, Philadelphia schools. Retrieved from https://www.inquirer.com/news/pennsylvania/pa-budget-impasse-threatens-septa-philadelphia-schools-20250730.html
[5] The Philadelphia Inquirer. (2025, July 30). Pa. budget impasse threatens SEPTA, Philadelphia schools. Retrieved from https://www.inquirer.com/news/pennsylvania/pa-budget-impasse-threatens-septa-philadelphia-schools-20250730.html
[6] The Philadelphia Inquirer. (2025, August 4). Philadelphia School District projects $1.6 billion deficit for 2026-27. Retrieved from https://www.inquirer.com/education/20250804/philadelphia-school-district-projects-16-billion-deficit-for-2026-27
[7] The Philadelphia Inquirer. (2025, August 5). Philadelphia School District prepares for a budget crisis as state budget negotiations drag on. Retrieved from https://www.inquirer.com/education/20250805/philadelphia-school-district-prepares-for-a-budget-crisis-as-state-budget-negotiations-drag-on
[8] The Philadelphia Inquirer. (2025, August 3). Gov. Josh Shapiro expresses frustration over slow pace of budget negotiations. Retrieved from https://www.inquirer.com/politics/20250803/gov-josh-shapiro-expresses-frustration-over-slow-pace-of-budget-negotiations
- The budget impasse in Pennsylvania risks funding for the state's mass transit systems such as SEPTA, with SEPTA facing potential critical funding cuts that could disrupt services, particularly affecting 105,000 public school students in Philadelphia eligible for transportation.
- The ongoing budget negotiations also include discussions on policy-and-legislation matters, such as the regulation and taxation of skill games, with Governor Shapiro proposing funding new initiatives using the state Rainy Day Fund and by legalizing and taxing adult-use cannabis and skill games.
- The stalemate in budget negotiations, set three weeks behind schedule, has significant implications for not just mass transit and politics but also for the general-news landscape, as schools in the region struggle with delayed state payments, and districts like Philadelphia work on contingency plans to ensure continuity of education for students.
