PHILADELPHIA – SEPTA is looking for ways to address a $240 million budget shortfall, and SEPTA executives say they have no choice.

Just one day after announcing good news, a settlement instead of a strike, with its drivers, SEPTA delivered bad news to its drivers, and the streak of bad news is expected to continue.

“We could lose as much as 20 to 25 percent of our ridership; we could lose eventually,” a SEPTA official said.

SEPTA expects to lose a quarter of its passengers in the coming months due to fare hikes and service reductions.

The first of two consecutive monthly fare increases was approved Thursday by the SEPTA Board of Directors, raising fares by 7.5 percent on Dec. 1, only to be quickly followed by another fare hike — three times as large — barely a month later, in January. 1st.

When the SEPTA board returns for its December meeting, it plans to approve a new fare hike of 21.5 percent. For a not-so-merry New Year’s ride for SEPTA riders totaling 29 percent.

“It’s kind of crazy. A lot of people rely on it to get to work, to get everywhere. It’s kind of crazy, and the service is not that good,” said Patty Dziekonska, a SEPTA driver.

“In total, it’s 29% and it’s going to hurt. It’s going to hurt the customers who need us the most.” said Scott Sauer, SEPTA’s chief operating officer.

Those who cannot afford the alternative – buying a car, too far to walk from work or school, and already struggling with the price of everything that has increased except their salaries – are feeling pressure.

“I’ll definitely buy a car, but there are some people who can’t just go get a car,” said Kaleem Johnson, a SEPTA rider.

“We’re the largest, poorest city in the country, and most of those people rely on us to get where they need to go, whether it’s to work or school. 29 percent, that’s It’s not a small increase,” Sauer said. “This is just the beginning of the mass transit death spiral. We raise fares, we start cutting service, people leave, our customers leave and find other ways to travel. Then we have to increase rates and reduce service again.”