Bailout or no, Metra's hiking fees

A sales tax windfall would spare CTA and Pace riders fare increases, but Metra leaders pledged Friday to forge ahead with a 10 percent ticket hike in February.

State lawmakers Thursday approved a long-awaited sales tax boost to address deficits in Metra's, Pace's and the Chicago Transit Authority's operating budgets. Gov. Rod Blagojevich will approve the plan only with the proviso that senior citizens ride for free.

Without a cash influx, the three agencies were planning ticket increases plus service and staff reductions.

Metra's new fees mean a person spending $116.10 on a monthly pass would pay about $12 more.

Asked about potential criticism from riders on raising fares despite the state's actions, Metra board Chairman Carole Doris said, "It's a modest increase, one our riders have accepted, and it will help us catch up."

More Coverage Stories Legislators may also tinker with funding plan [01/12/08] Governor relents on transit plan, if seniors can ride free [01/11/08]

But that's not how Palatine resident Anna Gaddis saw it.

"It seems real crazy that they are going to tax you and raise the cost," Gaddis said at the Palatine Metra stop.

At least one lawmaker called the decision disappointing. Waukegan Democrat Sen. Terry Link said Metra had ample time to plead its case.

"They were part of the negotiations," Link said, adding "I will be very disappointed" if fares go up.

And Republican state Rep. Sid Mathias of Buffalo Grove expressed concern about the effect Metra's fee increase could have on the pending transit plan.

"I hope the increase doesn't affect someone's vote," he said. "Some (lawmakers) felt they were voting for the bill to prevent a fare increase."

Metra directors had approved fare hikes of 10 percent in 2008, 10 percent in 2009 and 10 percent in 2010 if no state aid emerged. If the sales tax increase goes through, they say, they should need only the 2008 increase.

"A 10 percent fare increase (in 2008) is a prudent business decision given all the exigencies before us," Doris said.

Adding 10 percent should generate about $20 million a year for Metra. Half the additional revenue will be used to bolster the agency's capital budget and fund projects such as the STAR line linking Will, DuPage and Cook counties, Metra officials said.

The remainder should stave off increases in 2009 and possibly in 2010.

To avoid red ink previously, Metra has dipped into its capital funds and diverted more than $160 million in the last four years.

"We have robbed Peter to pay Paul," Doris said.

In the meantime, Metra would receive about $107 million in new sales tax money. Blagojevich went back on his campaign promise and agreed to raise sales taxes, but only on the condition seniors ride free on public transit statewide. That change requires another vote by the General Assembly.

Reaction from Metra commuters Friday afternoon ran the gamut from irritation to resignation.

Brenda J. Thomas, en route from the Lisle Metra stop to her Oak Park home, was relieved to learn the change would cost her under a dollar a day.

"I'll just have to fit it in my budget, tight as it is," she said.

Exiting the train at his Libertyville station, Tim Marotte reasoned that "there's a cost to doing business."

"What is another 30 cents a day? Not a huge deal," he said.

Henry Lozano, a Chicago resident who takes Metra to Elgin several times a week, supports the fare hike. "It's worth it. I get good service for it," he said.

On his way from Geneva to Chicago to visit friends, Patrick Jennings of Sugar Grove said: "I'm a little mad. It's expensive as it is."

Republican Sen. Kirk Dillard of Hinsdale said he was pleased Metra is stopping two-thirds of its proposed ticket price increases, but he tied the 10 percent hike to the governor.

"I wonder if they could drop it entirely if Gov. Rod Blagojevich drops his desire to provide free rides for all seniors (regardless of income)," he said.

Giving seniors free rides will cost Metra between $8 million and $10 million a year, it estimated.

If the transit plan with higher sales taxes goes through, Pace riders won't experience any fare hikes, it says. The agency expects to gain $36 million more in new sales tax revenue.

"We set forth what our needs were and that was the basis for our contingency plan," Pace spokesman Patrick Wilmot said. "Now funding has materialized, we don't see the need to implement cuts."

The CTA also plans to hold off fare hikes -- in 2008.

If the sales tax hike is finalized by the General Assembly, "we think it unlikely we will do a fare increase this year," CTA spokeswoman Noelle Gaffney said. "Beyond that, it depends what the numbers are."

Metra leaders said the fresh revenue from the sales tax did guarantee that staff reductions and service cuts would not happen.

Meanwhile, Pace estimates giving seniors free rides will cost it $1.8 million annually.

"Certainly, some of these costs will be absorbed through new funding," Wilmot said.

The CTA projected free senior rides would cost it about $20 million in revenue.

bull; Daily Herald staff reporters Chad Brooks, Nancy Gier, Jake Griffin, Harry Hitzeman, Madhu Krishnamurthy and Nick Shields contributed to this report.