State gives, then takes from mass transit

The state gives and the state takes away.

But after experiencing a $500 million emergency windfall only to lose $37 million in a stroke of Gov. Rod Blagojevich's pen, Regional Transportation Authority leaders are far from philosophical about the latest Springfield switcheroo.

In trying to eliminate a state budget shortfall last week, Blagojevich slashed $37 million in RTA funding intended for Metra, Pace and the Chicago Transit Authority.

Unless the General Assembly overrides the governor's cuts, "we'll have to reduce our costs or increase revenues," agency Executive Director Steve Schlickman said at a Thursday meeting.

The $37 million was intended to reimburse the agencies for providing disabled individuals and students with reduced fares plus free rides for seniors. The free rides were instituted at Blagojevich's behest this March as political exchange for allowing a sales tax increase bailout of the cash-strapped CTA, Pace and Metra to proceed.

The subsidy has been around since the 1990s. Historically, RTA loses about $44 million a year because of reduced fares and the $37 million helped fill the gap. With seniors riding free, it could cost transit agencies between $15 million and $30 million more annually, planners estimate.

Although the new sales tax, passed early this year, is pumping more revenues into the CTA, Pace and Metra to the tune of a future $500 million more annually, that money was intended to make the agencies whole after being underfunded, Schlickman said.

"It still will be a tight budget year. The sales tax was implemented in April and we're just receiving the revenues now," Schlickman explained,

This year, the RTA could receive about $210 million from the sales tax, financial staff projected.

Previously, transit agencies had about 109,000 seniors using reduced fares yearly. Now roughly 250,000 seniors are taking advantage of the free rides, officials said.

Other unexpected expenses affecting transit are soaring fuel costs and an anticipated budget hit of $5 million to $10 million when a policy allowing low-income disabled individuals to ride free is enacted. The law is awaiting the governor's signature.

While commenting on the cuts, RTA chiefs also took the opportunity to push for a state capital bill to improve public transit infrastructure, an option that's looking increasingly dubious.

"If we could get a capital bill, we could run the system more efficiently," Schlickman said.