Jump on board
SEPTA is driving force behind some economic bursts in Montgomery County
When most people think of SEPTA they think of taking a train into the city or catching a bus or trolley to school or work; maybe hopping on the Market-Frankford Line to go to Center City or the Broad Street Line to the sports complex to take in a game.
While SEPTA drives many of us to our destinations each day, what may not come immediately to mind is the way in which SEPTA drives the economy of Southeastern Pennsylvania.
That’s why the authority recently unveiled the results of an economic impact study that reflects the positive financial influence and reciprocal benefits of investment in public transit, and how SEPTA plans to enhance its services to fit the needs of tomorrow.
“Economics are what matters to a lot of people,” explained SEPTA General Manager Jeff Knueppel.
“It’s one thing that we’re known for carrying a lot of people, but what goes beyond? How important is it to have SEPTA serving our region?”
Knuppel and his team recently shared the results of the study with the Montgomery County Commissioners.
The study, conducted by Philadelphia-based Econsult Solutions at a cost of $120,000, takes a comprehensive look at SEPTA’s effect on state, regional and local economies.
It includes demographic information, cost/ value analysis, potential and ongoing infrastructure and equipment improvements, and even a “heat map” showing how the proximity to re-
gional rail lines helps to increase property values.
“There’s even other aspects of the study if you look,” said Knueppel.
“In the city, it shows where all the construction permits are. They’re all along our lines,” he said, touting the veracity of transit-oriented development.
According to the study, since the passage of Act 89, (a landmark 2013 transportation bill) SEPTA has an average annual economic impact of $2.93 billion in the area comprised of Philadelphia and its four surrounding counties, and supports 22,590 jobs that create $1.67 billion in earnings.
In Montgomery County, the study found the average annual economic impact to be $403 million,
with 3,010 jobs and $175 million in earnings.
In addition, SEPTA spent nearly $200 million on goods and services provided by businesses in the county between 2013 and 2016.
Knueppel called Act 89 “a total game changer” that breathed new life into the authority after some difficult times.
With a threadbare operating budget and financing uncertainty caused by a funding conundrum baked into previous transportation legislation, SEPTA was looking at drastically reducing services less than five years ago.
According to Knueppel, Act 89, which reconfigured fuel taxation and imposed higher drivers services fees, resulted in an approximate $500 million annual cash injection to public transportation systems, of which SEPTA receives about 70 percent.
“That significant infusion
of capital dollars really fueled a doubling of our capital program, and it’s helped us with a lot of really key projects all over our system to keep our infrastructure viable,” Knueppel said.
Having tackled feats of logistics, (like the papal visit, mega-concerts and championship parades) SEPTA is now looking to modernize and expand services throughout its ridership area, a region that produces about 41 percent of the state’s economic output, with just 32 percent of the state’s population, covering about 5 percent of Pennsylvania’s total land
mass, the study illustrates.
Upgrades include new station amenities like the Lansdale parking garage and facilities such as the Ambler substation. SEPTA has already purchased a locomotive and is planning to purchase multi-level railcars.
Other improvements include modernization of the subway and trolleys, increased regional rail capacity, and enhancements to the airport line and existing bus services.
In Montgomery County, the most impactful of SEPTA’s initiatives is, without a doubt, the King of Prussia Rail, a spur extension of
the Norristown High Speed Line which will drastically cut the commute time from Philadelphia to King of Prussia and support economic development in the region’s third-largest economic engine, behind Center City and University City.
Knueppel says it’s all part of the authority’s strategy for economic growth to keep up with the needs of a population the study shows has grown by more than 81,000 residents over the past six years, bucking a statewide trend.
He said he’s gotten favorable feedback on the study and wants it to remind
residents and policymakers in Harrisburg of the value SEPTA brings to their communities and the state’s bottom line.
“We need people to be aware of how important SEPTA is to the region and even more so now that we are starting to really grow and our economy is doing well...And we don’t ever want to be back in that 2013 situation prior to Act 89 when we were thinking about where we were going to have to pull back the system because we couldn’t keep it all running.” Knueppel said.
“SEPTA does not want to be in a situation where we’re the limiter when our rail network is carrying a lot more people than it did in 2000, whether it’s the Broad Street subway, the Market- Frankford or the Regional Rail.”
“A lot of things are happening that are positive economically for our region. We’re getting all kinds of opportunities, even Amazon at our doorstep, and so they need to understand how important SEPTA is to making and supporting that growth.”
“Our system is just a gem,” Knuppel said. “Other cities that are trying to be up-and-comers are trying to assemble networks like this. The way our transportation system blankets the region is really a fantastic thing.”