Amid pushback, fiscal crunch, Metra reverses course on using operating funds for capital projects

Metra leaders last week put the brakes on a plan to divert operating funds to capital needs that was opposed by the Regional Transportation Authority and some lawmakers.

The commuter railroad had sought to shift $60 million from operating revenues to the capital side to secure matching federal grants and finance loans for urgent projects in its 2026 budget proposal.

But with a looming fiscal crisis next year, the RTA objected. The timing also was fraught with the General Assembly in the midst of a veto session that could result in a financial bailout for Metra, Pace and the CTA.

“We told the RTA and the legislative leadership that we will work with the Metra board to remove the transfer of $60 million from operating to capital,” Metra spokesperson Michael Gillis said Friday.

“I think we heard the concerns and recommendations from the legislative leadership and wanted to listen to their concerns. I think the message was — this just isn’t the time to be doing it.”

At an Oct. 3 RTA meeting where Metra made its case for the transfer, Chairman Kirk Dillard gave leaders some advice.

“Go see the Senate president (Don Harmon) who has some very strong feelings about this, and literally tell him what you told us,” Dillard said.

COVID-19 federal aid dries up in 2026, leaving an estimated $230 million shortfall that’s anticipated to spiral in 2027 and 2028.

Given the emergency, the RTA had “directed the service boards not to transfer operating funding to capital in order to maximize funds available for operations,” RTA spokesperson Melissa Meyer said Thursday.

“Metra’s current proposal to reallocate $60 million for capital use is not consistent with that direction.”

At the Oct. 3 meeting, Metra leaders argued that “not investing in our bridge and track and signal (infrastructure) now will lead to dramatically increased costs” in future years, Chair Joseph McMahon said.

“Our bridges are safe. (But) they have to be addressed,” Metra Executive Director Jim Derwinski told RTA directors.

He also noted there was nothing new about the practice; Metra had allocated a portion of operating funds to capital projects for 30 years until COVID-19 decimated ridership revenues.

The extra cash would have been used to pay debt service on loans for an ambitious bridge program, which would fix or replace 210 structures over 20 years at a cost of $140 million a year.

Metra also would pursue federal grants that require matching funds, Derwinski explained.

“We need to catch up. We’ve missed opportunities as a region to get more federal dollars back here,” he said.

RTA Director Pat Carey of Grayslake said she “didn’t disagree” with Metra’s goals, but operating funds should get priority during the fiscal crisis.

“We have to keep the trains running, the buses running … particularly until we know what the state’s going to do, I’m not comfortable with that $60 million showing up as being moved over in 2026,” Carey said.

“You can put it out there in 2027 and 2028, and if it works, it works. We need pretty much everything going toward operating now.”

Derwinski countered that leveraging local dollars could generate millions in matching federal grants, and time is of the essence. The urgency is underscored by the Federal Railroad Administration announcing a bridge inspection surge, he added.

One more thing

AAA is out with tips for travel this Thanksgiving and Christmas, the most important being — don’t wait. Over half of Illinois residents expect to get away for at least an overnight this holiday season. And 25% expect to take more time off this year.

Nearly 60% of Illinoisans got a jump start on Thanksgiving vacations, booking planes and hotels by Sept. 30. And 85% of travelers will finalize their plans by Oct. 31.

“Only 15% plan to wait until November,” AAA warned.

Gridlock alert

Sorry, Barrington. Northwest Highway between Valencia Road and Route 59 will remain closed until “later this month,” the Illinois Department of Transportation reported. The closure, necessitated by the construction of an underpass at the CN Railway tracks, was to have ended in mid-October.