Chicago transit leaders prepping budget cuts
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Illinois' 2026 fiscal year started Tuesday, but more money for public transit is not in the budget, leaving transit leaders and commuters in limbo.
The big picture: The Regional Transportation Authority (RTA) and Chicago area transit leaders have been sounding the alarm on a $770 million fiscal cliff expected next year as COVID funds are set to expire, and had requested $1.5 billion from the state legislature.
- But lawmakers passed the 2026 budget without that money.
Why it matters: Short of lawmakers calling a special summer session or taking up the issue in October's veto session, RTA has one budget scenario that assumes 40% service cuts and a potential fare increase.
Reality check: Although the state's fiscal year started July 1, RTA's doesn't start until Jan. 1.
- CTA, Metra and Pace must present their budgets by mid-October and with this year's uncertainty, RTA asked each to prepare two versions — one with additional funding and one without.
What they're saying: "I don't want to give anyone false hope that there is still any way to avoid some of these negative impacts," RTA executive director Leanne Redden told the RTA board last month.
- "The negative impacts are here, and now we're going to have to all work together to mitigate the worst of those impacts for as long as possible, while the legislature continues to do their work."
Catch up quick: The Illinois Legislature could not agree during the spring session on a package that included reforms and revenue for regional transit.
- The Illinois Senate passed a bill that included what lawmakers referred to as necessary reforms, including a new governance board called Northeastern Illinois Transit Authority, or NITA, an Office of Public Safety and a transit ambassador program.
- Some proposed revenue ideas included a transaction fee on tolls, $1.50 ride share tax and increased real estate transfer tax.
Yes, but: "Those measures were met with stiff opposition from the collar counties," state Sen. Ram Villivalam said at the Union League Club last month.
State of play: Villivalam has maintained that NITA would "promote integration and eliminate the silos" by creating a universal fare system and operating budgets for all agencies rather than separate budgets and leadership.
- State Rep. Eva-Dina Delgado echoed that it would benefit riders most: "I think Metro is very good at delivering commuter rail service. I would love for them to communicate more with the bus system, so that we make sure that the bus shows up at the same time the train does."
The other side: CTA, Metra and Pace argue each agency is needed because of the specific needs of that type of transit — city, suburban bus and commuter rail – and also that they should remain separate to honor each agency's collective bargaining agreements with workers.
Follow the money: Without support from the legislature, RTA has predicted $3.6 billion in operating expenses, down from $4.4 billion.
- RTA budget officials say a fare increase is an option to generate about $50 million in new revenue.
What's next: A potential fare increase could go up to 10% and would take effect after Jan. 1 if the RTA approves it.