Metra proposes new set of fares in 2024 budget
Metra is weighing a new set of fares for 2024 under a budget proposal unveiled Wednesday.
The proposal includes no planned substantial changes to schedules, as Metra faces continued low ridership and a looming fiscal cliff once federal pandemic aid runs out, but the agency is eyeing service additions or changes as needed.
Metra proposed a roughly $1.1 billion budget for 2024. That figure includes expenses for which Metra expects to be reimbursed by an Indiana commuter rail service, and once the agency is reimbursed the budget proposal will drop to about $1 billion, up almost 5% from this year’s spending plan.
The budget comes as the commuter rail service’s ridership remains below pre-pandemic levels, with many white-collar workers continuing to work from home at least a few days a week, and as the agency is now lowering its projected future ridership increases. In September, the average number of weekday riders was 54% of pre-pandemic levels. Ridership on peak office workdays in the middle of the week was 60% in September, but on Mondays it dipped to 48%, and on Fridays dropped to 43% of 2019 levels.
But ridership during off-peak times of weekdays has recovered faster than weekday rush hour, hitting 70% of pre-pandemic levels in September, compared with 49% for peak times, according to Metra data. And weekend ridership has recovered even more, reaching 89% of 2019 levels.
The higher 2024 budget is due largely to inflation and increased costs associated with union contracts. But there is some other new anticipated spending, including hiring, expected higher fuel costs and about $15.6 million in costs related to Metra taking over commuter rail operations on its Union Pacific lines, which have been handled by the freight railroad.
Metra spent less than expected in 2023, partly because it wasn’t able to hire for many open positions. Metra CEO Jim Derwinski said the hiring challenges have mostly affected office jobs, and could be because Metra requires employees to work in person. The pipeline of conductor and engineering positions is filling up, and Metra “is in a pretty good place” to have the ability to add back service if needed, he said.
A key piece of the upcoming budget is a new fare structure, as Metra looks to adjust to changing commuter habits and attract more riders who are taking trains to places other than downtown offices. Metra hopes the new set of fares will boost ridership and be simpler for riders and conductors to manage.
“It’s the biggest change ever,” Derwinski said.
Metra fares have traditionally been divided into zones, meaning the farther a passenger rides the more they pay. After ridership plummeted at the start of the pandemic, Metra also began offering discounted monthly and daily passes.
The proposed changes call for dividing Metra lines into four fare zones, rather than the current 10. Downtown stations would make up one zone, and other stations would fall into different zones based on their distance from downtown, service and ridership. Trips that start and end outside downtown will cost a flat $3.75, as Metra looks to attract more non-traditional-commuting riders.
The current 10-ride pass would be eliminated in favor of a five-pack of day passes, which will cost 9.5 times the cost of a one-way ticket. The new passes will only be available digitally.
Monthly passes will no longer be a flat $100, but will instead cost about the same as 20 one-way tickets, which for farther zones can exceed $100. Daily passes for $6 or $10 that were offered during the pandemic will be replaced by day passes that cost the same as two one-way tickets.
Metra weighed changes to its fares as part of its last budget for 2023, proposing a monthly pass equal to 16 one-way zone-based fares and day passes that cost the same as two one-way trips. But board members rejected that proposal last year, calling for fare consistency and the simplicity of fewer zones as the agency looked to continue drawing back riders.
Metra staff also proposed a plan to spend $1.9 billion on capital needs, like construction and train equipment, through 2028. That includes the purchase of 200 new rail cars — which are not expected to arrive until 2025 — rehabbing existing rail cars, an ongoing project to rebuild a section of bridges and track along the Union Pacific North line, and spending to manage other construction projects.
As in previous years, Metra is relying on federal pandemic aid to balance its budget. Next year, the agency is planning to use $223.7 million of the aid.
Metra is now projecting the relief money will run out in 2026 — lasting slightly longer than previous projections, which had the money running out in 2025 — and leave the agency with a $274.7 million budget gap that year.
Each of the region’s three transit agencies is expecting their relief money to run out in the coming years, leaving them with significant budget gaps, and they are bringing in less money from rider fares. The Chicago Metropolitan Agency for Planning has drafted options to revamp and fund transit that it is sending to the state legislature, which will then decide how to proceed.
Metra’s board is expected to vote on the budget proposal in November after public hearings.
