Recommended changes to transit head to state lawmakers, who could debate expanded sales tax and consolidating agencies
A sweeping set of recommendations about what Chicago-area transit could look like in the future has been sent to the state legislature, setting the stage for lawmakers to debate potentially thorny issues about funding for public transit and whether the CTA, Metra and Pace should be consolidated into one agency.
The report, drafted by regional planners after meetings with community organizations, lays out recommendations to address public transit funding, governance and the experience of riding buses and trains, as the region’s three public transit agencies face a looming financial cliff and languishing ridership numbers. Among the options included are additional taxes, such as expanding the sales tax base, and two options to revamp oversight of the region’s separate transit agencies.
But some of the options are likely to be contentious among influential business groups, which have already raised concerns about expanding taxes, and suburban and city representatives vying for influence on transit agency boards.
Cook County Board President Toni Preckwinkle supports consolidating the transit agencies. At a ceremony to formally hand the report to lawmakers Thursday morning, she said she also supported recommendations to raise $1.5 billion in new public revenue for transit — the more expensive of two funding options — but reform, and changes to the decades-old way public transit funding is distributed to the three agencies, is needed first, she said.
“Even if our transit agencies work together well now, there have been many years, decades even, in which the service boards were at cross-purposes,” she said. “To solve the transit system’s problems we have to show unity of purpose with our policies leading in one direction.”
Chicago Chief Operating Officer John Roberson said at the ceremony Mayor Brandon Johnson was committed to working with the rest of the region and lawmakers in Springfield to address public transit’s needs. He did not address the mayor’s view on consolidating the agencies but instead focused largely on funding, saying transit has been chronically underfunded for decades and lack of investment is an equity issue.
“We are already seeing the beginnings of what the cost of inaction can look like,” he said. “We need a more robust system that will attract more riders back to downtown.”
The report came from the Chicago Metropolitan Agency for Planning, which was tasked by the legislature with drafting recommendations as the region’s public transit agencies face a combined $730 million budget hole once federal COVID-19 relief funding starts running out in 2025. Transit agencies have warned that failure to plug the hole could lead to catastrophic service cuts and fare increases.
Regional ridership also has not returned to pre-pandemic levels. Public transit, which has long served downtown office commuters, is facing a fundamental shift as typical commuting patterns change and more white-collar employees work from home.
Now, lawmakers will choose how to move forward with the recommendations.
The CMAP report includes two sets of proposals with two price tags. One calls for $1 billion in new public funding annually, and the other $1.5 billion. Both also call for the transit agencies to generate another $200 million through fares or savings.
The new money could include increased funding for existing free, reduced-fare and paratransit programs, raising regular fares and expanding programs to keep fares affordable for low-income riders and youth.
A key idea includes expanding the sales tax so that it applies to some types of services and potentially also raising the rate that goes to Chicago-area transit, though that could be paired with lowering the rate in the rest of the state. Also under consideration are driver fees, such as a surcharge on vehicle registration costs.
The recommendations also address service, including improvements to the bus system, adding “transit ambassadors” to boost safety and the perception of safety, and moving to one fare system across all types of public transit, instead of maintaining largely separate fares for the CTA, Metra and Pace.
The service and funding changes are paired with recommendations to change the way transit is overseen in the region. Currently, the CTA, Metra and Pace are each operated by a separate agency, and the Regional Transportation Authority coordinates financing.
The recommendations could include simply strengthening the RTA and keeping the separate agencies, or folding the three transit agencies into one entity, an idea that has been floated before but never gained traction. Whether the concept would gain enough traction this time around remains to be seen.
In an August letter, Preckwinkle and leaders of DuPage, Lake, Kane, Will and McHenry counties expressed support for consolidating the region’s transit agencies and giving more control to suburban elected officials.
Thursday, Preckwinkle said she supports many of the other recommendations in the report, which line up with goals the county outlined in its own transit plan. A proposal to expand reduced fare programs to low-income riders — similar to a new Cook County-backed pilot program for Metra riders — would be a key step toward transit equity, she said. Integrating fares across the three transit agencies is also a top priority for the county.
“Sustainable funding sources for all transportation modes are critical to a strong, resilient transportation system,” she said. “And our transit system is part of the economic foundation of our region.”
Funding recommendations that call for added taxes, including expanding the sales tax base, have already been met with opposition. Jack Lavin, CEO of the Chicagoland Chamber of Commerce, said the city is still recovering from the effects of the pandemic and now is not the time to think about expanding taxes.
“We’re trying to get people back downtown,” he said. “We’re trying to get people shopping and (focus on) retail corridors across the city.”
The chamber was part of a group that advised CMAP while drafting the report, and Lavin said he supports many of the recommendations around governance of the systems and ensuring they operate efficiently. A strong transit system is key to Chicago’s success, he said.
But before going to taxpayers for more money, he said, transit oversight and operations need to be addressed. A better customer experience could make riders more willing to pay higher fares, he said.
“If we’re going to ask taxpayers to reach deeper into their pockets, we need to see these reforms,” he said. “We need to see a more efficient, reliable transit system that embraces technology and can help all of these areas be more efficient, accessible, safe and clean.”
State Sen. Ram Villivalam, a Chicago Democrat who sponsored the bill tasking CMAP with drafting the recommendations, said review of the way the region’s transit agencies are governed is sorely needed to ensure greater accountability and transparency for residents. There will be differing views on funding, but any conversation about money comes with an understanding that public transit also needs to be safe, reliable, accessible and environmentally conscious, he said.
“I do strongly believe there is a commitment from the Illinois General Assembly, in a way there hasn’t been in the past, to look at funding and not be adverse to funding programs that will positively benefit the constituents that we serve,” he said. “Obviously, the question is how. And the second question is, is the funding going to create the system that we believe our residents deserve.”
