CHICAGO (CN) - Chicagoland's mass transit authorities face layoffs and service cuts after Illinois lawmakers failed to address a looming fiscal cliff ahead of the end of the legislative session.
Legislators narrowly passed the state's $55 billion budget before Saturday's midnight deadline but left a $771 million gap in the transportation budget, driven by expiring COVID-19 aid and falling ridership. A special session could be called this summer, though no plans have been announced.
The Regional Transit Authority, which oversees the Chicago Transit Authority, Metra, and Pace, previously projected 40% service cuts if the deficit isn't resolved. The CTA estimated that up to half of its rail lines could be suspended, 74 of its 127 bus routes would be eliminated, and nearly 3,000 transit workers would be laid off.
The Senate passed a bill Saturday with over $1 billion in new funding to close the deficit, but it stalled in the House. The proposal included tax hikes on deliveries and ride-shares, a 50-cent toll increase, and an expansion of Chicago's real estate transfer tax to nearby suburbs. Lawmakers were hesitant to fund the RTA without structural reforms; the bill would have replaced it with a new Northern Illinois Transit Authority empowered to set regional fares and oversee agency budgets.
The board would have five members appointed by the mayor of Chicago, five appointed by the governor, five appointed by the Cook County Board president, and one director each appointed by the respective board chairs of Kane, Lake, McHenry, DuPage and Will counties.
Some state lawmakers vocalized concerns about the board, characterizing it as a Cook County and Chicago takeover of regional transit funding.
"There will be overlapping members to ensure that there's that integrated mindset. The reality of the situation is that CTA not just serves the city of Chicago," Sen. Ram Villivalam, a Chicago democrat who sponsored the Senate bill, said to a gaggle of reporters. "...We are one region in one state and that is the reform that we need to ensure that we have a system that our residents, again, people that work, the 1.5 million people that rely on public transport to get to their job, their school, their doctor, they cannot afford a 40% cut to service."
The delivery tax proposal, which would have imposed a $1.50 fee on retail deliveries, was met with strong opposition from some lawmakers and local business owners. Those in favor of the tax characterized it as an "environmental impact tax," whereas opponents likened it to a "pizza tax."
A coalition of business groups, which included the Chicagoland Chamber of Commerce, the Illinois Chamber, the Illinois Fuel and Retail Association, the Illinis Manufacturers' Association, the Illinois Restaurant Association, the Illinois Retail Merchants Association, the National Federation for Independent Business and TechNet, said in an emailed statement that the regressive tax would hit vulnerable communities the hardest.
"That includes residents who live in food deserts, people with mobility challenges and disabilities that make shopping trips challenging, or those without access to transportation. It also threatens income and opportunity for thousands of delivery drivers who may see demand for their services drop as consumers cut back to avoid this tax," the statement continued.
Matt Maxson, a Lakeview resident and self-described transit enthusiast, said it felt disrespectful when the House didn't take up the transit bill after its passage in the Senate. He expressed frustration with lawmakers for not exploring other avenues to address the revenue deficit, such as increasing fares.
Some social media users have expressed a desire to leave Chicago if the budget deficit isn't addressed, but Maxson said he doesn't plan on doing so anytime soon.
State lawmakers have not indicated whether there will be a special session. In Illinois, the governor can call for a special session, or the presiding officers of the House and Senate can do so after a vote.
Illinois Governor J.B. Pritzker didn't indicate whether he'd call for a special session in his post-session news briefing on Saturday, but he noted that there's significant work to be done over the summer and fall.
"I can say this: we need transit reform. We need to make sure we're addressing the needs of commuters, and not just in the city of Chicago or in Cook County or in the collar counties, but all across the state," Pritzker said to reporters. "I think you've heard me say that every single time I've talked about transit. The entire state relies upon transit. So whatever solution we have has to address them."
Source: Courthouse News Service
