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The Southeastern Pennsylvania Transportation Authority’s (SEPTA) board recently approved a $1.3 billion operating budget for fiscal-year 2013, up 3 percent compared with FY2012.

SEPTA officials attributed the budget increase primarily to rising health care costs. The budget contains no fare increases or significant service changes, SEPTA officials said in a prepared statement.

In addition, the board approved a $303 million capital budget, which represents a 25 percent reduction compared with funding levels from three years ago. The budget primarily will fund mandates, such as regional rail signal system upgrades and other safety improvements, SEPTA officials said. In addition, the agency set aside capital funds for equipment overhauls, and the purchase of buses and paratransit vehicles.

“Without additional funding, much needed upgrades — from critical overhauls to electrical substations to bridge repairs and station renovations — are pushed back indefinitely,” agency officials said.