Sep 15, 2008 3:59 pm US/Central
RTA: Fare Increase Likely, State Funding A Must
CHICAGO (Sun-Times Media Wire) ―
While noting the budgetary obstacles faced by the CTA, Metra and Pace aren't as dire as last year, the RTA Board on Monday said the need for new capital funding is urgent and a fare increase might be needed.
The Board made changes to the 2008 budget to reflect the financial challenges and approved projected 2009-2012 financial plans, according to a release from the RTA.
"When the funding and reform bill was enacted in January, we thought we could balance the budget even though new tax revenues would not be available until July, and we had to deal with the loss of revenue from the senior free rides mandate," RTA Board Chairman Jim Reilly said in the release.
"Since then, increases in the price of fuel, the elimination of the state half-fare subsidy, economic pressures producing lower-than expected sales tax receipts and revenue from the real estate transfer tax, and increased operating costs due to deferrals in capital maintenance have all contributed to the more serious challenge that we face today," he said.
RTA Executive Director Steve Schlickman said all of the agencies are facing challenges which "are made more difficult by a lack of state capital funding. When the CTA, Metra and Pace are forced to operate equipment that is out of date on an aging infrastructure, it costs them more money than it should ... We need action in Springfield on capital funding."
The RTA worked earlier this year to pass legislation to reform the regional transit system, restructure financial and management processes, and provide new operating funding for train, bus and paratransit services. No state funding for new trains, buses, tracks or other infrastructure was included.
"When lobbying for the passage of the RTA reform and funding bill, we anticipated that the plan would establish a strong stable base of public funding for mass transit operations for many years to come, and we still believe that to be the case," Reilly said in the release.
"At the same time, we always maintained that periodic fare increases would be needed. Not only are we required to collect half of our revenue from fares, but transit riders ought to pay a reasonable share of the cost of their trip -- which remains a legitimate bargain compared with driving."
The CTA, Metra and Pace will now develop their budgets and hold public hearings before submitting them to the RTA by November 15. The RTA will hold public hearings in November throughout the region on the combined budget before the RTA Board adopts the 2009 transit budgets in December.
(Source: Sun-Times Media Wire © Chicago Sun-Times 2009. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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