Are we going over the cliff? Lawmakers have just days to save Metra, Pace and CTA from massive cuts

When state lawmakers convened in January, they faced two seismic transit challenges — fixing a $770 million shortfall facing Metra, Pace and the CTA, and reforming how those agencies are governed.

With 19 days before their spring session ends May 31, the clock is ticking, officials acknowledge.

The governance piece has been discussed ad infinitum, but there’s been no robust vetting of how to solve the cash gap. Tax, toll and fee increases have been floated, which could mean an unwanted surprise for Illinoisans come late May.

Fiscal cliff

COVID-19 federal aid dries up next year and ridership remains below pre-pandemic levels, leaving a massive revenue gap in 2026.

The Regional Transportation Authority, which oversees Metra, Pace and the CTA, wants an infusion of $1.5 billion annually to transform the system with more frequent, reliable service.

Asked if the financials will be completely resolved by May 31, state Sen. Laura Murphy said, “no.”

Public transit has enough money to run through 2025, and “we’re not going to be rushed or pressured into making decisions. We want to see how the money’s going to be used before it’s allocated,” the Des Plaines Democrat said.

The RTA warns Draconian cuts will ensue next year if legislators don’t address the transit shortfall in the 2026 budget this month.

“We need to solve the ($770 million) budget fiscal cliff first, and that, I believe, is possible by the end of May,” Republican state Sen. Don DeWitte of St. Charles said.

The $1.5 billion “that will allow the system to expand and improve … can happen a little bit down the road,” said DeWitte, Senate Transportation Committee minority spokesman.

About that funding

There’s a smorgasbord of ideas for raising cash, which include:

• Raising the RTA sales tax or the motor fuel tax.

• Putting a tax on services, which would be complicated.

• Hiking vehicle registration fees.

• Increasing tolls, an idea that’s likely DOA.

• A pilot project to collect a miles-traveled tax to capture EV revenue.

Safety first

House Transportation Regulation, Roads & Bridges Chair Marty Moylan is focused on security amid shootings and violence on the CTA.

He supports legislation to “hire 400 police officers just for the Chicago transit part,” and get help from Cook County sheriff and Illinois State Police because “the system is not safe.”

The Des Plaines Democrat also wants funding to shift homeless individuals from the CTA into better situations. “It’s inhumane for them to be sleeping on the train; there’s other agencies that will support them,” he said.

What else? He’s seeking a clampdown on CTA overtime.

“We can’t let the system fail but we also need reforms,” Moylan said.

Rival reform solutions

One plan to fix transit, which is backed by labor unions, would increase the RTA’s authority over Metra, Pace and CTA on budgets and fares. A second would abolish the four boards and merge the agencies into a “Metropolitan Mobility Authority.” Supporters argue the MMA would be more efficient but Collar County leaders contend it would cede power to Chicago and Cook County.

“Neither bill will be the final version,” Murphy said. “There will be excerpts from both of them.”

She anticipates a new central authority will emerge offering economies of scale and allowing CTA, Metra and Pace to continue to operate. But as for preserving the transit boards with 47 members? “It’s unwieldy,” Murphy said.

Ultimately, “everyone’s going to have a voice without one group taking control from the other.”

Democratic Sen. Cristina Castro of Elgin said, “My top priority as a suburban legislator is ensuring our communities are able to maintain localized input, oversight and control over the transit systems we rely on.”

DeWitte expects “there will be a newly empowered oversight board yet to be named, that must have control over the operation, performance and financial well-being of all three of the service boards.”

He thinks the boards of Metra, Pace and the CTA will remain intact.

Complicating matters, some lawmakers have objected to a $750,000 RTA fiscal cliff ad campaign.

“For me, it was infuriating,” Murphy said.

RTA Director Leanne Redden said earlier that input from riders and taxpayers “showed that nearly half of residents weren’t even aware of the fiscal cliff and it is our obligation to inform them.”