Free rides for seniors proving too costly for RTA
Illinois lawmakers could revisit a plan to restrict the free rides for seniors program to those with limited incomes even as a study shows its impact is costing cash-strapped transit agencies millions.
A University of Illinois at Chicago Urban Transportation Center analysis found that free rides for seniors and disabled individuals will equal a loss of more than $1 billion for the CTA, Pace and Metra by 2030.
The draft study prepared for the Regional Transportation Authority and presented Thursday at a board meeting estimates an average of $70 million a year is lost to free fares.
The news comes at a time when both the Chicago Transit Authority and Pace are facing budget shortfalls and contemplating fare hikes and service reductions.
Former Gov. Rod Blagojevich caused a stir in early 2008 by inserting free rides for seniors regardless of income into legislation raising sales taxes to fund the CTA, Metra and Pace. The program went into effect March 2008. Free rides for disabled individuals making $22,200 or less a year was approved separately and started in October 2008.
Both programs are popular, attracting about 1.4 million new riders a month on regional transit, the UIC study showed. Researchers also found about 1.7 million seniors a month who previously paid are riding free.
The study indicates about 31 percent of seniors riding free have incomes of more than $55,000 a year. A total of 16 percent were employed.
"A lot of well-off seniors are using the service," said Joseph DiJohn, director of UIC's Metropolitan Transportation Support Initiative. But he also noted that 24 percent of study participants supported limiting senior free rides to low-income people and 6 percent wanted it eliminated.
The news could prompt action in the General Assembly to revise the senior ride free program to allow only those who are poor.
"Clearly it's unsustainable and we have to do something," said RTA board member Patrick Durante of Addison.
RTA leaders said they supported a system where free rides for seniors would be triggered by the $22,200 per person income level. Revising the rides policy could generate an estimated $37 million extra a year for the CTA, Metra and Pace.
"We're losing tens of millions of dollars to free rides at a time when we can't afford it," RTA Executive Director Steve Schlickman said.
State Rep. Suzie Bassi, a Palatine Republican, said the House attempted to restrict the free rides program to low-income seniors back when Blagojevich first proposed the concept. The plan stalled in the Senate.
Now Bassi plans to reintroduce the proposal. It would also allow seniors who don't qualify for free rides to receive half-price fares - the system used previously for everyone 65 and older.
Bassi conceded it's a "tough bill for a lot of people" because seniors are such an important constituent group.
But she noted, "We get far more calls saying 'This is stupid, I don't need it' than "Don't take my free ride away.'"
DiJohn said a significant number of wealthier people surveyed were willing to pay for transit, adding "they were more likely to support income limitations for the ride program."
Retiree Teresa Lindner, 67, of Arlington Heights takes Metra into Chicago for free. But she admitted being a little skeptical when Blagojevich rolled out the idea last year.
"I use it about once a month and I do appreciate it," she said. "It helps make ends meet. However, it's fine with me if it goes away and is just for people with low incomes. When they had the reduced rate, I thought that was good enough."
Senate Republican leader Christine Radogno of Lemont also is pushing to revisit the issue, a spokeswoman said.
The final version of the study is expected later this fall.
Daily Herald Senior State Government Editor John Patterson contributed to this report.
<p class="factboxheadblack">Costly free rides</p> <p class="News">Facing budget problems, the Regional Transportation Authority is reviewing the impact of a free rides program for seniors and for people with disabilities on limited incomes. The senior free rides program has caused controversy because it is open to seniors regardless of income.</p> <p class="News">Here's a look at the financial impact:</p> <p class="News"><b>More than $1 billion</b> Estimated lost revenues for CTA, Metra and Pace by 2030</p> <p class="News"><b>$70 million </b>Estimated average of lost revenues per year</p> <p class="News"><b>31 percent</b> Estimate of share of seniors riding free who have annual incomes of more than $55,000</p> <p class="News"><b>1.4 million</b> Estimated number of new riders a month</p> <p class="News"><b>1.7 million</b> Estimated number of seniors riding free a month who previously paid reduced fares</p> <p class="News"><b>50.3 million </b>Total of free rides taken between March 2008 and June 2009</p> <p class="News"><b>348,825</b> Number of seniors registered with the RTA to take free trips</p> <p class="News"><b>30 percent</b> Number of study participants who want free rides for seniors eliminated or limited to low-income seniors</p> <p class="News"><i>Sources: University of Illinois at Chicago Urban Transportation Center study, RTA</i></p>