Metra copes with budget shortfall for now

Metra leaders dispatched of a $9.8 million deficit Friday, shifting money from capital funds to operating, but warned the capacity to handle budget gaps is limited.

The deficit arose from extra repairs required because of bad weather, additional costs for health insurance and lower ridership linked to unemployment, financial staff said.

The agency covered the shortfall with a windfall received from the federal government's economic stimulus program in 2009. With the extra federal cash on hand, Metra was able to put aside some of its capital revenues into a rainy-day fund. That money will be used for preventive maintenance costs, freeing up other money to eliminate the $9.8 million deficit.

Executive Director Phil Pagano noted that further shortfalls can't be tolerated. "Our cash reserves are at a minimum," he said.

This follows the Regional Transportation Authority announcing Thursday that the state owed it $280 million in sales and real estate transfer taxes, which are supposed to be transferred to the CTA, Metra and Pace.

Metra board Director Arlene Mulder asked about proposed reforms to the seniors-ride-free program in the General Assembly. The policy instituted by former Gov. Rod Blagojevich was revised by the House to benefit only low-income seniors. The Senate may consider it next week.

If the Senate and Gov. Pat Quinn, who backs the status quo, agree to the changes, it could generate up to $10 million more a year for Metra.

"Don't count that money," Director Jack Schaffer cautioned.