RTA thinking positive about negative outlook

Regional Transportation Authority leaders have seen the future and it's not that hot in terms of revenue.

So as a pre-emptive strike against the high anxiety of this summer's paratransit funding crisis, officials Tuesday came up with an emergency plan to handle a shortfall in 2010.

Paratransit, the ride service provided by Pace for riders with disabilities, is projected to run a $17.2 million deficit next year. That's assuming a 1.5 percent increase in sales tax revenues, which help fund the program.

RTA Chairman Jim Reilly gave a "worst-case scenario," recommending the agency plug the hole with Pace supplying about $3.4 million and the RTA supplying $9 million from its Innovation, Coordination and Enhancement fund, intended to be used for short-term, inexpensive projects and service improvements. As for the remainder, "we'll have to figure that out," Reilly said, adding a loan was a possibility.

Administrators added that they will try to avoid such a scenario by applying for federal grants that could solve the problem.

"No one wants to do any of these things. We'll need to look for other sources," RTA board Director Dwight Magalis of Libertyville said.

Paratransit faced a $20 million shortfall this summer and one proposed solution of using RTA capital dollars intended for Pace, the Chicago Transit Authority and Metra ran into a roadblock from the latter two agencies.

Pace predicted money would run out by October and a failure to resolve the crisis would mean the service could cease to operate.

Paratransit, however, is a federally mandated service and Federal Transit Administration chief Peter Rogoff warned the RTA and Pace that paratransit "is not a discretionary expense, it is a civil right," in a sharply worded letter.

The RTA ultimately agreed to use a combination of ICE funds, $9 million from Pace in capital dollars, and a fare increase to $3 to balance the budget.

Hearings on the paratransit fare increase start next week. Dates include: 3:30- 5:30 p.m. Tuesday at the Waukegan Public Library, 128 N. County St.; 4:30- 6:30 p.m. Sept. 23 at the Crystal Lake Municipal Complex, 100 W. Municipal Complex; 4:30- 6:30 p.m. Sept. 23 at the Pace headquarters, 550 W. Algonquin Road, Arlington Heights; 4:30- 6:30 p.m. Sept. 23 at College of DuPage Student Resource Center, 425 Fawell Blvd., Glen Ellyn; and 4:30-6:30 p.m. Sept. 24 at the Kane County Government Center, 719 Batavia Ave., Geneva.