CHICAGO — State lawmakers are running up against the clock as they examine proposed bills that move to rename the Regional Transportation Authority and grant it more power over the Chicago Transit Authority, Metra and Pace.
The Regional Transportation Authority, known as the RTA, would be renamed the Northern Illinois Transit Authority under proposed legislation introduced late Wednesday. The new agency would be responsible for creating a universal fare system, establishing a police force and launching a new transit ambassador program.
The Senate version of the bill, introduced by Sen. Ram Villivalam, also proposes new taxes and pulls funding from existing avenues that could help avoid the $770 million fiscal cliff that the transit agencies are collectively facing.
But the window to pass a bill that would avoid a financial disaster for the three agencies is closing soon and must be passed before the Illinois General Assembly’s spring session ends Saturday.
A fierce debate between lawmakers, transit advocates, labor unions and leaders at the CTA, Metra and Pace has played out in recent years, with some sounding alarm bells over the future of the region’s transit system if funding isn’t secured.
The RTA previously called on state lawmakers to not only fill the budget gap but make a $1.5 billion investment in annual operating funds to improve the system.
Lawmakers are adamant that funding can’t happen without reform. On Wednesday, Gov. JB Pritzker agreed that governance reform was important for the region’s transit system, which has struggled to provide reliable and safe services coming out of the pandemic. He also supported efforts in the latest bill to establish full fare integration among the three transit agencies.
“What we really need is to uplift the entire system, make it safe for everybody to ride, get to work, go to school, get home safely,” Pritzker told reporters. It’s “hyper-important to me that we are doing that because you can’t put money into something that doesn’t guarantee that at the start.”
The second bill, introduced in the house by Rep. Eva-Dina Delgado, fails to address the funding problem but focuses on this governance. Under the bill, the Northern Illinois Transit Authority’s board would consist of 20 directors. The governor, Cook County Board president and the mayor of Chicago would each appoint five members. DuPage, Will, Kane, McHenry and Lake counties would each appoint one member.
Villivalam’s bill does address the funding issues facing the systems by creating a 10 percent tax on rideshare trips in Chicago, Cook County and the collar counties. Drivers in metropolitan Chicago could also expect to pay a 50-cent surcharge — capped at $1 per day — on the Illinois Tollway system to fund public transportation.
Under this bill, the Northern Illinois Transit Authority would also impose a real estate transfer tax at a rate up to $1.50 for every $500.
An analysis from Crain’s Chicago Business estimates the new surcharges and taxes could produce a combined nearly $600 million a year. A speculative tax program not in this bill could add another $742 million to the new transit agency, according to Crain’s.
RTA spokesperson Tina Fassett Smith said the agency is still reviewing the proposed transit reform legislation but stressed the importance of the state lawmakers providing funding by Saturday. If not, the three transit systems move closer to a scenario that would drastically reduce services in the region.
The RTA reported in March that without legislation to fill a $770 million budget gap, the transit system would see a 40 percent reduction in services. This would also mean one in five Chicagoans would lose access to public transit in 2026.
Metra declined to comment Wednesday, noting that the agency was still reviewing the legislative proposals. The CTA and Pace didn’t respond to a request for comment.
This latest legislation combines elements of a bill that would’ve created a super agency called the Metropolitan Mobility Authority and a labor-friendly proposal called the United We Move bill.
The Labor Alliance for Public Transportation — a coalition of more than 30 Illinois unions focused on transit safety and efficiency — also believes there is a need for governance reform, but it is concerned that the bills don’t create any new revenue streams for public transit. Tapping into tollway dollars is akin to “robbing Peter to pay Paul,” it argues.
“From day one, the Labor Alliance for Public Transportation has advocated for a comprehensive proposal to revitalize public transit in northeastern Illinois to ensure long-term financial health of our transit systems and infrastructure,” said Tim Drea, president of the Illinois AFL-CIO. “Although there are many positive reforms to create a safer, more reliable system, the current legislative proposals in Springfield do not address the funding needed to address the fiscal cliff and implement these reforms to build the system riders deserve.”
Bus operator Tiffany Rebb has worked at the CTA for seven years and said her life revolves around her career. That is now in jeopardy after Rebb said she was told the agency might be forced to start delivering pink slips to employees as early as June if the state doesn’t fill the budget shortfall.
“People are going to be laid off, and it’s going to be really hard not just for us workers but [for] riders, too,” Rebb said. “Passengers in wheelchairs will struggle because more buses will be filled to capacity and there won’t be a place for them on the bus. The streets will be more congested [with cars], and people will have to leave much earlier than they should.
“It’ll be a disaster.”
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