On Friday, the governor negotiated a short-term fix for CTA and Pace, providing $27 million to the agencies so that they can meet payroll and other operational costs through the end of the year. The short-term fix flexed federal capital dollars to patch the budget hole, an accounting measure that underscores the need to identify sustainable, regionally-derived revenues. New Year's Day will become the third doomsday for transit. Negotiations on the capital bill, due to take place over the next 10 days, have held-up discussions on a long-term fix for transit. A long-term fix is not just about money, but the ability of state government to deliver substantive changes to how transit is planned and developed to ensure the viability of the Northeast region.

By all accounts, SB572 House Amendment 10 contains far-reaching substantive changes to the RTA region.  Viewed cumulatively, those changes will:

§         Address the population and job growth in the suburbs by improve mobility and reducing congestion through a county-directed fund for road enhancements

§         Deliver right-sized transit to the suburbs through the implementation of innovative and multimodal forms of transit

§         Ensure adequate funding for the CTA and substantially fix the CTA pension problems, which will prevent the use of pension contributions to shore-up operating short-falls

§         Empower the RTA to hold the Service Boards (CTA, Metra and Pace) to responsible accounting

§         Direct the RTA and the Service Boards to strengthen minority and female diversity programs for hiring and contracting

Without this bill:

1.      Collar counties will not receive $116 million for road enhancements.

2.      Fare increases and service cuts may occur in January 2008. 

3.      No new funds will be made available for transit systems outside of the Northeast region, leaving18 counties slated to receive transit funds for the first time without any funding.

4.      Job Access Reverse Commute and New Freedom funds in the Northeast region may be jeopardized because CTA and Pace will not have available funds to meet match requirements.

How SB572 HAM 10 affect the Northeast region?

§         No fare increases.

§         For every $100 spent, twenty-five cents will be paid in sales tax in Chicago and fifty cents in the collar counties.

§         In Chicago, for every $100,000 spent on real estate, $300 would go to the CTA.

Given that middle and low income individuals are much more likely to use mass transit, they will pay more under fare increases than tax increases.  Take a look at the most recent Weekly Review http://www.ctbaonline.org/PressRoom.htm

Will transit modernize or erode? All corners of the political spectrum unanimously support the bill. (See a list of endorsers: www.chicagometropolis2020.org.) Both the Chicago Tribune and the Sun-Times have repeatedly voiced their support for the bill. Initially, brought to the floor for house vote on September 4, the bill received 61 votes in favor, including five Republicans. Without the full 71 votes needed to override an expected veto from the Governor, the bill was quickly set to postpone consideration. Once a capital bill is in place, it is anticipated that the SB572 will be brought before the legislature in late November or early December.

Read Representative Julie Hamos' most recent update: http://www.juliehamos.org/transit/news/newsitem.aspx?newsitemid=132

For further information, contact Dia Cirillo, policy director-workforce, at dcirillo@ctbaonline.org