RTA rebuffs Metra budget report

Regional Transportation Authority directors decided a promise doesn’t cut it Friday in refusing to sign off on a budget report from Metra projecting a $7 million shortfall.

Metra officials reported that at the end of the third quarter, the agency faced a deficit of $7 million in the operating fund. But they also offered a remediation plan explaining how that gap would be eliminated by the end of 2011.

That’s not enough, several RTA directors said.

“If the remediation plan said there would be reductions in payroll or other costs I would be more comfortable with it,” Director Michael Rosenberg said. He characterized the report as relying on “hope and wishes.”

Metra had originally forecast an $18.5 million operating deficit for 2011 but the agency made internal cuts and also is getting a windfall with new revenues coming from the termination of free rides to all seniors. That program is now restricted to low-income riders 65 and older.

Sales taxes are also higher than anticipated and all these factors will close the budget gap, Metra leaders have said.

Approving quarterly financial reports is usually a routine matter at RTA meetings, but this particular version failed to get enough support to bring it to a vote.

“What message does it send if we say they’re in compliance (with the RTA Act) and they’re not?” Director Douglas Troiani asked.

“They’re substantially in compliance,” RTA Executive Director Joseph Costello said.

The issue will be revisited at the agency’s December meeting. The RTA has financial authority over Metra, Pace and the Chicago Transit Authority.

Metra leaders on Friday voted to raise fares by an average of 25 percent in February to avert a $54 million shortfall in 2012.