Transit’s fiscal cliff gets steeper as leaders warn of ‘death spiral’
Metra, Pace and the CTA delivered their 2025 budgets to the Regional Transportation Authority Friday, but next year was a side issue for officials.
A multimillion dollar “fiscal cliff” when federal COVID-19 aid runs out in 2026 stole the thunder at a RTA board meeting.
The pandemic devastated ridership on all three systems and it’s still not up to 2019 levels, leaders said.
“A snow day used to be a Metra day,” Metra Executive Director Jim Derwinski said. “Now snow days are work-from-home days.”
In two years, the RTA projects a $771 million shortfall facing the agencies that surpasses earlier estimates of $730 million. In 2027, that tally could spike to $1.1 billion.
Transit leaders have made it clear they’re hoping the Illinois General Assembly can help resolve the crisis or riders could see steep service cuts.
A similar crisis rose in the late 2000s before lawmakers readjusted funding formulas.
Transit wasn’t a huge legislative priority then, said former state senator and RTA Chairman Kirk Dillard.
“This time, I think everybody gets the importance of mass transit — $17.2 billion in economic activity annually. Even post-pandemic, moving 1.2 million riders a day. I think everybody in Springfield realizes the need that something must be done,” Dillard said.
But the deadline to act is by the end of the session in May, he warned, before Metra, Pace and the CTA start preparing budgets.
“There are lots of federal regulations and hoops to jump through if we were ever — and I hope we won’t have to — make the Draconian cuts of 20% that would mean a 40% cut in service.”
One worst-case scenario for the CTA would be ending 24-hour service, President Dorval Carter said.
He warned of the “death spiral — the more service you cut, the more fares you increase, the more ridership you lose,” a cycle that repeats.
“Inaction would be a disservice to our customers that threatens the economic future of our region,” Carter said.
RTA planners noted in a budget report that the $771 million estimate was fluid. “Many variables will continue to impact and potentially mitigate this forecast as we move forward, including ridership recovery, sales tax trends, and service board expense performance relative to budget.”