(The following story by Jon Hilkevitch appeared on the Chicago Tribune website on June 25.)
CHICAGO — Chicago Transit Authority officials warned Thursday that service cuts and another fare increase could be imposed next year unless the General Assembly alters the formula that funds mass transit in the six-county region.
The cutbacks, which would be the first major reductions since 1997, could include eliminating 24-hour bus and rail service and switching the CTA’s focus to serving rush-hour commuters, the agency’s top brass told the Tribune editorial board.
“Transit funding is broken in the region,” said CTA Chairman Carole Brown. “… If we don’t see changes, you are going to see a much smaller, different CTA. But you are also going to see more traffic congestion, more air pollution.
“You are going to see the quality of life in this region impacted because we can’t offer the same kind of public transportation that we’ve had in the past.”
CTA officials say the transit agency’s share of public operating subsidies has eroded over the last 20 years because the funding formula is outdated.
Stopping short of asking for subsidies to be taken away from Metra and Pace, CTA officials are calling for changes to a 1983 amendment to the Regional Transportation Authority Act. Under the amendment, funding is parceled out to the three transit agencies through a regional transit sales tax and a corresponding state match.
RTA officials disagree that the formula is out of date, saying it has helped create stability in the region and should not be changed.
The CTA’s request faces a tough sell in Springfield, despite promises of help from some lawmakers.
Controversial recommendations this spring by a state-appointed transportation task force for the region have renewed distrust between suburban Republicans and Chicago Democrats. In addition, Gov. Rod Blagojevich says he opposes increasing income or sales taxes.
The CTA raised fares this year and cut 446 jobs to close an $80 million budget gap. The transit agency faces a preliminary 2005 deficit of $50 million to $100 million, said Dennis Anosike, senior vice president of finance.
CTA President Frank Kruesi said the bleak picture is not posturing and he wants to give state lawmakers advance notice about the funding crisis.
“This is not a Chicago or a suburban issue, but a regional issue that has real consequences,” Kruesi said.
The RTA requires the CTA to submit a balanced budget each year. For the first time, Kruesi said, two 2005 CTA budgets may be prepared: one that hinges on increased state funding for day-to-day operations and a worst-case budget that raises fares and cuts service.
CTA officials insist the funding problem must be addressed soon.
One proposal being floated is to raise the sales tax in the collar counties to match the 1 percent sales tax in Cook County.
RTA’s $442 million in funding to the CTA in 2004 is less than the $453 million the agency received in 2003. The CTA estimates that if funding levels had kept pace with inflation, the agency would have received $90 million more this year.
For 2005 and 2006, the RTA projects no increase in funding to the CTA.
About 85 percent of the RTA’s regional sales tax revenue is allocated by a geographic formula that has resulted in funding for Metra and Pace growing faster than for the CTA, which provides 80 percent of the transit trips in the six-county region each day.