Lawmakers advance transit tax proposal
In a Hail Mary-like move, a panel of lawmakers voted Wednesday to advance tax hikes that could prevent fare increases and service cuts at the CTA, Metra and Pace.
Yet, there remains no solid indication the proposal will become law, as House Republicans and even some Democrats withhold support and the governor maintains his veto pledge.
"I think this is just another dog-and-pony show," state Rep. Brent Hassert, a Romeoville Republican, said after voting against the measure.
The plan, which transit supporters have been pushing for months, will go before the state House on Tuesday regardless, said state Rep. Julie Hamos, a leader on the legislation and an Evanston Democrat.
Lawmakers have just about run out of time.
CTA and Pace officials are planning fare hikes and elimination of a few dozen bus routes by Sept. 16. Pace local fares will rise 25 cents and the CTA el rides will cost $3 instead of $2.
More drastic fare hikes and severe service cuts will follow in the months afterward, officials said. Plus, Metra officials are looking at a 10 percent fare hike and weekend service cuts for early next year.
The three agencies have a $240 million budget shortfall this year, which is said to be the result of rising gas, security and employee costs coupled with stagnant sales tax revenue.
The legislation approved in a vote of 15-4 Wednesday would increase the collar county sales tax by a half-cent, or 50 cents for every $100 spent on merchandize. Half of the money brought in from that, $116 million, could go to the counties for road improvements.
Cook County residents would see their sales tax rise a quarter-cent, and Chicago residents would face a 40 percent real estate transfer tax increase.
The new taxes, combined with about $142 million in matching funds from the state's general tax fund, would bring in about $339 million for the three agencies, about $120 million to bail out the CTA's pension and nearly $50 million for downstate transit.
The measure also gives the Regional Transportation Authority stricter oversight of the three agencies and allows Metra to take out $1 billion in loans for expansions.
Without the new money, transit officials say the system will not be expanded - that means no new STAR Line linking O'Hare airport to Joliet, no new CTA el lines and no new PACE service. Moreover, fares will rise much faster than inflation and many services will get the ax.
Supporters touted reasons for approval ranging from air quality to Chicago's bid for the 2016 Olympics.
"We are at a tipping point where transit could make a difference for people in their cars (in traffic)," said Mary Sue Barrett, president of the civic-organization Metropolitan Planning Council. "That is why all of you should care about this."
Sill, distrust among legislative leaders brought on by months of budget battles has left little wiggle room for acceptance of such tax increases. Gov. Rod Blagojevich is pushing for funding transit through closing so-called corporate tax loopholes, but most lawmakers have balked at the idea.
"Why should the entire state pay for regional transit?" Hamos said.