Fare hikes and service reductions are still on the horizon for public transit users after high-level talks Tuesday failed to solve the budget crises facing the CTA, Metra and Pace.

A meeting held with Gov. Pat Quinn's senior staff, the Regional Transportation Authority and the three transit agencies "was positive," RTA Chairman Jim Reilly said.

"We made some progress on paratransit, and we've agreed to continue to look at possible solutions," he said.

A future meeting is likely but there's no date set and next week the Chicago Transit Authority, Metra and Pace are scheduled to vote on fare increases. The agencies are anticipating budget shortfalls in the wake of disappointing sales tax revenues, their main source of funding.

The problem also affects paratransit, the ride service for the disabled operated by Pace.

A reprieve had seemed possible last week from the General Assembly during the fall veto session when legislators considered altering the free rides for seniors program. But legislation crumbled at the last minute that would have restricted free rides to low-income seniors and generated an estimated $37 million in extra revenue.

CTA President Richard Rodriguez said that the senior rides program was discussed during Tuesday's meeting.

Metra is looking at increasing the costs of one-way fares, weekend passes and penalties for buying tickets on trains. Pace is considering cutting or reducing 51 suburban bus routes and raising paratransit fares. The CTA is contemplating layoffs, service reductions and fare hikes.