Image courtesy of SEPTA Facebook
Facing a looming $213 million deficit that threatens deep service cuts, SEPTA announced its Efficiency and Accountability program has yielded tens of millions in savings.
In a progress report released last week, SEPTA stated the program has saved $91.4 million since its was launched in 2022 through efforts aimed at boosting efficiency and revenue.
Many of the savings and suggestions started with employees.
“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 Sauer in a statement.
The first phase of the Efficiency and Accountability Program included 140 initiatives projected to yield $102 million in recurring annual benefits.
The $91.4 million in savings came from cost reductions, new revenue streams, and improved employee time management, SEPTA officials said.
“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 Lawrence Jr., a Montgomery County commissioner.
Building on the first phase, SEPTA is launching a second set of 76 Efficiency and Accountability initiatives in 2025.
The new plan is designed to create a “safer, more efficient transit authority and a better workplace for our employees.”
The second phase of the Efficiency and Accountability Program is projected to save an additional $76 million by 2027.
Like the first phase, the program combines employee ideas with strategic corporate initiatives.
SEPTA highlighted several examples of how the program is saving money through the program.
Among the initiatives, the deployment of 76 small computers for cashiers has enabled direct communication with managers and reduced time spent delivering printed notices. The effort resulted in $108,824 in net realized benefits in 2023.
SEPTA formed its own insurance company, which is named Broad Street Risk Solutions, in 2023. The move is expected to save $7.9 million in risk transfer costs in 2024, with further annual increases anticipated.
Improved procurement and inventory management processes, including cycle count assessments and a three-step auditing process, yielded $2,110,717 in net realized benefits in 2023. The changes also reduced the margin of error in inventory against a $137 million stock value to 2.02 percent.
The transit agency has increased enforcement of fare evasion. New technology is projected to generate $4 million in potential new revenue by deterring fare evasion.
An enhanced Regional Rail Engineer and Conductor Training Program was created to address staffing shortages, with the goal of $11.3 million in savings through reduced overtime costs.
Additionally, SEPTA is leveraging its Transit Oriented Communities Program as it is pursuing joint development opportunities to maximize the value of its real estate assets. The transit agency said the program can potentially generate $9 million in new revenue.
In its program progress report, SEPTA noted that it is committed to making changes to its operations and focus more on the needs of riders, employees, and stakeholders.
