Budget gap pits city against suburbs

Tensions between city and suburbs emerged Wednesday during a Pace board meeting as officials learned about a looming shortfall in the paratransit budget.

The sluggish economy has meant a drop in sales tax revenues, which are a major source of funding for transit agencies.

The suburban bus side of Pace will be able to weather the storm this year, but a gap of about $24 million is projected for paratransit, a transport service for disabled people who cannot use fixed routes to reach their destinations mandated as part of the Americans with Disabilities Act.

Pace Director Frank Mitchell, who represents Will County, said shortfalls in paratransit should not negatively affect bus operations in the suburbs. He noted that the majority of paratransit riders are from Chicago.

"People in Will County will be upset if buses aren't running because we have to pay for ADA," Mitchell said.

Pace financial staff said the two facets of Pace - paratransit and suburban bus service - are separate funds. In 2006, responsibility for paratransit in the city was shifted from the Chicago Transit Authority to Pace by the General Assembly. Pace has always provided paratransit to the suburbs.

In terms of the shortfall, other Pace officials said it was the responsibility of the Regional Transportation Authority to bridge the budget gap. The RTA has authority over Pace, Metra and the CTA.

"All we can do is hope the RTA will find the funds from its reserves or from the state to honor its obligations," said Pace Director Vernon Squires, who represents suburban Cook County.

Pace will have a $16 million budget shortfall this year for its bus operations, but Deputy Executive Director of Internal Services Terry Brannon said savings on diesel fuel, which dropped from a budgeted $3.93 per gallon to below $2 per gallon, will prevent a deficit. Pace had also projected an $8 million in surplus in 2009, which will be used to plug the budget hole as well.

Brannon told officials Pace should get about $33 million from the economic stimulus package passed by Congress, and he said the money will be used to pay for paratransit buses, vans for the agency's Vanpool program, fixed route buses and other vehicles.

The CTA will receive about $240 million and Metra about $141 million, the RTA has said.