CHICAGO - Chicago area transit systems face service cuts or higher fares if state funding is slashed as Gov. Bruce Rauner proposed in his fiscal 2016 budget now before the General Assembly.
The Regional Transportation Authority of Illinois issued the warning on March 19 that its service boards face the loss of $170 million in operating funds for the fiscal year beginning July 1.
The blow would come from a reduction in one-third of the agency's share of sales taxes, the reduction in subsidies for reduced fare programs, and paratransit.
The proposed cuts represent a 45% decrease in Chicago Transit Authority state funding, a 60% decrease in Metra commuter rail state funding, and a 41% decrease in Pace suburban bus service funding.
"We are working to keep the lines of communications open with Gov. Rauner and his team, as it relates to public transportation funding," says Leanne Redden, Executive Director of the RTA. "But, let's be clear. Should these cuts be enacted, it would be difficult to avoid service cuts and fare hikes for CTA, Metra and Pace customers."
Redden said that at time when the agency needs stable funding sources to support operations and capital, the proposed cuts risk unwinding progress they've made in balancing their budgets and funding capital needs.
The Chicago region needs $16.6 billion over the next decade for routine transit maintenance and capital spending with another $19.5 billion needed to cover deferred investment, the authority has warned.
The tab for routine capital spending, maintenance, and replacement needs totals $1.66 billion annually, or $16.6 billion for the decade. The long-term $19.5 billion list of backlogged projects is separate.
The agency attributes the growing burden to underinvestment in recent years as the agency's service boards struggled with operating deficits and shrinking state and federal dollars. The situation will worsen without a significant increase in the amount of capital funding, a recent report warned.
The RTA entered the year with a $2.9 billion operating budget and $3.8 billion five-year capital program that relies on federal funds and loans, and borrowings including inaugural issues from two of its service boards. The RTA's service boards move about 2 million riders daily; it is the third largest transit system in the nation.
