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CBS 2's Mai Martinez, Mike Parker, Vince Gerasole and the Associated Press contributed to this report.
CHICAGO (CBS) ― The CTA has called off its doomsday plan of fare hikes and service cuts this Sunday, but the Regional Transportation Authority board says the pressure is on for lawmakers to come up with a long-range funding solution.

As CBS 2's Mai Martinez reports, during a morning meeting, the Regional Transportation Authority voted 10-2 to accept the state's bailout plan of the mass transit system. The only board members to vote against the bailout were former state Treasurer Judy Baar Topinka and William Coulson.

CTA authorities say they are relieved the RTA board approved the bailout, but they're now worried about even more dramatic cuts in service and jobs in the future.

As CBS 2's Mike Parker reports, it was clear that the 10 members who voted for the governor's temporary CTA bailout didn't like the proposal, but felt there was no other way.

"Personally I think that stinks," said RTA Director Patrick Durante, holding his nose. "So utilizing that characterization, I vote yes."

With that, at 9 a.m., the doomsday clock stopped ticking; at least until November, there will be no fare hikes, no bus route service cuts and 600 CTA employees will not be laid off. But because the short-term bailout includes borrowing on 2008 operating funds, the CTA President Ron Huberman says his anxiety level is going up. What happens if there's no long-term funding coming from Springfield in the months ahead?

"Next year looks very, very severe for us," Huberman said. "We certainly, just projecting out, will mean at least 1,000 layoffs next year. And service cuts, there's no way we can avoid impacting on our rail system."

CTA officials said later that with the funds in hand, they have called off plans to raise fares by as much as $1 and eliminate 39 bus routes effective Sunday.

RTA chairman Jim Reilly said the short-term funding is not ideal, but he says the bottom line is that they had to take care of the commuters who depend on the services of the CTA and other area transit agencies.

But several RTA board members stressed that the governor's plan is in no way a cure-all for the CTA's financial problems, and darker days could be around the corner.

That is because under the plan initiated by Gov. Rod Blagojevich, the RTA is essentially borrowing from its state funding for next year to make ends meet this year.

The $24 million bailout is a one-time payment of what's left in the state's 2007 CTA subsidy. It was to have been parceled out over the next several months. The bailout borrows $7 million from the 2008 fund that provided discount fares for the elderly, disabled and students, for a total of $31 million. The governor's deal also advances $6 million to the RTA for suburban Pace bus and Metra commuter rail needs.

Several board members Friday morning very hesitantly voted in favor of the governor's bailout plan, but they demanded that state lawmakers come up with a more permanent solution.

RTA directors are urging the General Assembly to grant more funding to the CTA, Pace and Metra. They say without an infusion of new funds, the CTA and other regional transit agencies will be worse off at the end of the seven-week bailout period than they are now.

This is because not only will they lack the necessary funding to operate, but money earmarked for other services will already have been spent.

"If the legislature doesn't act, we've just dug a bigger hole for ourselves and so we're very concerned that the legislature acts," CTA Chairwoman Carole Brown said. "What you heard from director Topinka and Coulson is their concern that we are just betting the future, and the future doesn't look too bright."

RTA board members said they realized the governor's plan was risky, but it came down to the fact that they were dealing with the lives of real people and did not want to leave commuters stranded at the curb.

"A short term solution is far, far better than placing undue and unnecessary hardship on tens of thousands of people who ride the CTA, Metra and Pace," said Governor Rod Blagojevich.

One of the RTA directors who voted "No" blames the governor for the crisis in the first place.

"For it to be dumped here for us to do the cleanup and mop up is very unfortunate," the director said.

The governor is pledging to sit down with anyone and everyone to come up with a long term solution. But relations between Blagojevich and legislative leaders are so rancorous, you wonder if they could agree that the sky is blue.

Brown pointed out state funding for public transportation has gone down every year since 1983.

The mayor's handpicked CTA president said Thursday now that time has been bought, state lawmakers must come up with a long-term CTA funding plan.

"If we don't, the level of cuts that would be necessary in 2008 would be that much greater than the ones currently posted for Monday," Huberman said.

A few CTA riders told CBS 2 Friday morning that they were grateful that the governor's plan was accepted, but like the board members, they hoped for a permanent solution to the problem.

"It shouldn't have gotten this far," said Jan Hamstra.

Frustrated commuters say they're ready to complain, but where?

"I think it's sad this city can't come up with the money to fund the CTA's problems," said Hinsdale resident Scott Braner.

Blaming the city might be misplaced anger – not all are aware RTA funding decisions are rooted in Springfield, and that ties the hands of those working for the CTA, RTA and Pace.

"I've seen people yelling and angry at CTA workers, however that's not where the problem arises from," said South Side resident Candice Lynch.

The CTA alone spent $2 million preparing for "doomsday," but commuters wonder if the city's Olympic bid is also paying a price.

"The eyes of the world are upon us even though the vote for the Olympics is a ways away," one man said.

For some 600 CTA employees like Devonia Madison, the emergency funding has averted immediate layoffs. But that number could climb to 1,000 if Springfield doesn't act by November 4.

"I kind of feel like I am in limbo," Madison said. "My job is safe for now but…"

The CTA now begins another lobbying campaign for a long-term funding solution, and it looks like it's leading to a titanic confrontation between the governor and the legislature.

"Come January, there is no money. Alright?" Topinka said. "There's no money unless they're going to have a bake sale or we're supposed to print it in the basement."

The solution brewing in the cauldrons of the state legislature is a bill that would fund Chicago area rapid transit on a permanent basis with a quarter of one percent increase in the state sales tax.

"Hopefully we can call it and pass it," said the bill's author, state Sen. John Cullerton. "It's a very good comprehensive mass transit funding bill which is extremely fair to every sector of the State of Illinois."

The bill is expected to generate $380 million a year, not only for Chicago area transit, but for roads downstate.

But there is opposition from the governor who threatens a veto.

He said he wants "a long-term solution that does not put on a back door fare increase by raising their taxes."

Cullerton says he believes he not only has the votes to pass the sales tax bill, but enough votes to override any veto by the governor.

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