State acts to avert increases in CTA, paratransit fares

A deal announced Wednesday by Gov. Pat Quinn and transit agencies will save CTA and Pace paratransit riders from steep fare hikes but it's not a permanent solution, some warn.

The resolution of the latest transit budget crisis - a combination of borrowing and state aid - comes with the condition both agencies freeze fares for two years.

The plan doesn't address anticipated fare increases at Metra and looming reductions of 51 routes by Pace, although officials at the suburban bus agency said they may scale back the cuts.

Asked if he was kicking the can down the road at a time when the state has scant dollars, Quinn called the move prudent given that many riders are facing tough economic times and can't afford higher fares.

"We brought people together to come up with a fiscally responsible plan. The voters will like this," he said. "This is exactly what we have to do in an emergency."

Under the agreement, the Regional Transportation Authority would borrow money for capital projects to be used by the Chicago Transit Authority, allowing federal construction dollars to be shifted to cover operating costs. The debt service for the influx of $83 million a year, estimated at $15 million for 2010 and 2011, will be paid by the state for the first two years.

That allows the CTA to avert fare hikes from $2.25 to $2.50 for buses and $3 for trains. The agency is still considering layoffs and service reductions.

The state will also give Pace an extra $8.5 million a year to avoid raising fares for disabled riders through 2011. The agency was set to vote Wednesday on upping paratransit fares from $3 to $3.50 in the suburbs and up to $5 in Chicago. Paratransit is the pickup service Pace runs for disabled Chicagoans and suburbanites, and many riders protested that the new rates were exorbitant.

"A majority of riders are low-income, and most have no options other than paratransit," said Pace board Director Karen Tamley, commissioner for the Mayor's Office for People with Disabilities.

Metra, Pace and the CTA were facing a sea of red ink after revenues from sales taxes and real estate transfers for the CTA came up woefully short.

"This gives us breathing room to let the economy catch up with us," Pace Chairman Richard Kwasneski said. "It's certainly not a permanent solution, everyone knows that."

Although the move will help the CTA and Pace, it's expected Metra will move forward on increases to one-way fares, weekend passes and penalties for buying tickets on trains.

At a Pace board meeting later Wednesday, officials passed a budget with cuts, but they refrained from finalizing reductions and eliminations to the 51 bus routes, which have generated an outcry from riders that rely on them.

Evelyn Graves, an Arlington Heights paratransit rider, said the loss of a local route would be devastating to her family. "I hope you can sleep," she told Pace officials.

Pace staff will come back in December with what's expected to be a slimmer list of route reductions. In the meantime, they'll look at other economies and work with entities such as Harper College to keep some routes alive.

"Even if a route doesn't perform, those who use it will be badly hurt if we have to shut it down," Pace Director Vernon Squires of Wilmette said.

The reprieve comes at a time when the state's in a financial bind and is borrowing money to stay afloat. Quinn said a minor windfall in new federal dollars for health care will compensate for the new transit obligations.

During the fall veto session, lawmakers considered revising the seniors-ride-free policy to limit it to low-income people. Although it would have generated about $37 million extra in revenues, the proposal never went anywhere.