Politics

CHICAGO (AP) ― Top legislative leaders talked Wednesday about a new way to get money to cash-strapped mass transit agencies, but they signaled they're still not close to an agreement as fare increases and service reductions loom for Chicago area riders.

House Republican leader Tom Cross said one option is to divert about $300 million in sales tax revenue the state collects on gasoline purchases in Chicago and the collar counties to mass transit.

But Democratic House Speaker Michael Madigan continued to favor a proposed regional sales tax increase to bail out the Chicago Transit Authority, Metra commuter rail and Pace suburban bus system.

The two leaders, along with a few other lawmakers, met in Chicago to talk about how to pay for a massive state construction program that includes roads and bridges and how to fund mass transit. The two issues have stalled in the Legislature because Gov. Rod Blagojevich and lawmakers have been unable to resolve their differences over the best approach to come up with money.

"I don't like the fact that we're looking at a sales tax. I don't like the fact that every time we turn around we see another tax proposed or an increase in a tax. I think there's a way to do it without raising taxes," Cross said after the meeting.

Madigan said the House would be back in session Nov. 1 to consider an earlier aid package for mass transit that includes generating about $280 million by raising a regional sales tax and another $100 million through a Chicago real estate transfer tax.

Since that bill first failed in the House last month, Chicago and Cook County have proposed a laundry list of new taxes and fees to prop up government budgets.

Madigan contends "regional taxes for a regional problem" are the way to go and the strategy has fewer political problems than Cross' idea.
CTA and Pace say they will start rolling out fare increases and service cuts Nov. 4 if the state doesn't come up with money.

Under the alternative framework Cross suggests, moving out sales tax revenue would create a hole in state coffers that would have to be filled. Cross says some options include taking money from special-purpose state funds and possibly raising car title fees. Mass transit fare increases of 10 to 15 percent also would decrease the amount of money the state would have to turn over.

Blagojevich spokeswoman Abby Ottenhoff said the governor agrees with the concept of moving around sales tax from gasoline purchases, but "there's still discussions going on about back-filling that revenue" in the state budget.

Blagojevich hinted Tuesday that an idea for a mass transit deal was in the works and said Cross would try to get Madigan onboard. Cross said another meeting is planned for this weekend.

The governor and Madigan have had strained relations all year and the tension between them has escalated as a protracted legislative session drags on and the Democrats who control Springfield can't agree on how to come up with money for some key issues.

Cross said transit funding was only "a very small part" of his discussion with Madigan because they talked primarily about using gambling to fund a massive statewide construction program.

A Senate-passed bill would expand gambling, including a Chicago casino and two others, to pay for mass transit and a $13 billion state construction program.

In another point of difference between Cross and Madigan, Cross said mass transit and a capital bill need to be linked. Madigan apparently thinks otherwise.

"I will not hold hostage transit riders for casinos," he said.

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