Governor bails out CTA, but not Pace
Gov. Rod Blagojevich came through with a temporary bailout offer for the CTA on Wednesday but apparently left Pace out of a deal that has yet to gain approval from an oversight agency.
The $24 million plan is aimed at putting off the CTA's planned fare hikes and service cuts from Sunday until Nov. 4, removing pressure from lawmakers as they debate a sales tax hike proposal for transit funding.
"It seems to me pretty ungrateful to turn down this help," Blagojevich said during an afternoon news conference as he turned up the heat on the Regional Transportation Authority to OK the plan. "Why would they not seize the moment?"
RTA officials are approaching the deal cautiously and have indicated it is possible to use some of the funds directed to the CTA for Pace.
"As the stewards of the funding, we determine where (the funding) is going," RTA spokeswoman Diane Palmer said.
RTA board members -- appointed by collar county officials -- will vote on the deal Friday morning. If some of the $24 million is used to push off Pace fare hikes set for Sunday and service cuts set for October, then it is conceivable the deadline for CTA's "doomsday" budget would have to come earlier than Nov. 4.
Pace officials were left with the impression Wednesday that they were out of the deal, and the governor made no mention of the suburban bus agency during his news conference.
"We are disappointed it seems the suburban piece is left off the table, but we are taking a wait-and-see attitude," Pace spokesman Rocky Donahue said.
The possible absence of assistance for Pace has riled some suburban lawmakers.
"It makes no sense to me to play favorites, which it seems the governor is doing," said state Rep. Sid Mathias, a Buffalo Grove Republican.
On Sunday, Pace para-transit riders in the collar counties are set to face a 50-cent fare hike, and local route users will fork over an extra 25 cents. About 20 fixed-routes services will be cut Oct. 1 and more than 30 feeder routes to Metra stations are set to get the ax Oct. 15.
RTA Chairman Jim Reilly expressed concern about the governor's bailout plan Wednesday as fiscally risky considering it counts on lawmakers to approve a long-term funding plan soon.
"On its face, the proposal averts an immediate crisis but may create an even greater problem in the coming months," he said in a statement.
The $24 million would come as an advance on next year's state funding to the RTA, meaning if lawmakers fail to act, the agency will be short that money for its 2008 budget.
Approving the plan without a Pace bailout could throw the political equation in Springfield out of whack as Chicago Democrats would be under less pressure than suburban lawmakers to act soon.
"The legislators who are counted on to pass this will certainly be angry if the suburban transit is cut and not the city transit," Mathias said.
On the other hand, RTA board members would risk taking the flak for CTA cuts and fare hikes if they fail to go along with the governor.
CTA Chairwoman Carole Brown, also an RTA board member, said she would urge the RTA to approve the plan. But just in case, the agency is not yet going to remove signage that warns passengers of the 39 bus route cuts and $1 rail fare hike.
Despite the temporary bailout offer, the governor continues to oppose a plan to raise regional sales taxes to bring in more than $400 million to the CTA, Metra and Pace. The agencies are about $240 million in the red this year, and transit officials have been pushing the sales tax hike as a long-term financial solution.
On Friday, transit officials will start looking at additional cuts and fare hikes for January if higher taxes are not approved. Pace and Metra officials are eyeing the elimination of weekend service.
The tax hike measure would raise the collar county sales tax a half-point and the Cook County sales tax a quarter-point. That would bring in nearly 50 percent of the revenue the agencies currently reap from regional sales taxes.
In total, the measure will add 50 cents in tax to a $100 bill for merchandise in the collar counties and 25 cents on the same tab in Cook County.
So far, legislative leaders have been unable to muster the votes for the plan. The proposal failed in the House last week and a vote in the Senate was delayed this week when it failed to gain enough support.
The Senate is expected to vote on the measure Monday along with a major public works plan funded by new casinos. Blagojevich also expressed support for the public works package Wednesday, calling it "real progress."