Transit Future Update - September 13, 2007
Transit Future Update, September 13, 2007
Governor offers CTA a bailout
Yesterday Governor Blagojevich attempted to stave off the looming service cuts and fare hikes scheduled for this Sunday, September 16th, by offering the Chicago Transit Authority a $24 million bailout. The money will come from funds already allotted to the RTA for 2008. By moving up the payment of these funds, the “doomsday” of fare hikes and service cuts scheduled can be pushed back to November 4th. The Governor said that he hopes delaying the doomsday scenario will give the legislature time to work out a long-term solution.
A long-term solution that would have both funded the RTA and reformed its governance system was rejected by the legislature earlier this week.
While the CTA board has accepted the bailout, it will not receive the money unless the Regional Transit Authority also accepts the measure at its board meeting tomorrow. While delaying the service cuts and fare hikes would give the legislature time to work on a long-term solution, avoiding the costs of re-hiring hundreds of employees and changing schedules, not to mention stranding thousands of riders, the bailout is not risk-free. Because the money comes from funds already allotted to the CTA, if the legislature does not provide additional funding, the fare hikes and service cuts that eventually go into effect on November 4th could be worse than those scheduled for Sunday. Jim Reilly, Chairman of the RTA board that meets tomorrow, has said that accepting the bailout “may create an even bigger problem in the coming months.”
The bailout also provides no money for Pace, the suburban bus service, which will go ahead with its doomsday plan on Sunday. Crucially, Pace provides paratransit services that would not be saved from fare increases by the bailout. Many of the region’s senior and disabled citizens depend on these paratransit services as their primary mode of travel, many of them living on fixed incomes and unable to absorb fare increases.
Mixed Reaction
Reaction from community and civic leaders to the news was mixed. Mayor Daley has announced that he supports the plan, and has encouraged the RTA board to accept the bailout. “It’s only a stopgap,” the mayor said, “[but] it’s better than the alternative. The alternative would be Monday morning, you cut service out for people and increase fares.”
Jacky Grimshaw, Vice-President for Policy at CNT, expressed the sentiments of many transit riders and advocates in the region: “It is heartening to see the governor take action, but I am also fearful that this band-aid will create a larger deficit for the CTA if the legislature fails to act. We cannot forget that we have a regional transit funding problem, and cannot just focus on the CTA, but must provide funding for Pace and Metra.”
In a statement released to the press, Jim Reilly wrote on behalf of the RTA expressing skepticism about whether the plan’s benefits were worth the risk. “On its face, the proposal averts an immediate crisis, but may create an even greater problem in the coming months. Given the current political dynamic in Springfield, the RTA has to decide whether it is prudent to ‘hope’ legislative leaders and the Governor will act to place the regional transit system on sound, permanent footing.”
Links
News articles on the story:
-The Chicago Tribune
http://www.chicagotribune.com/news/local/chi-ctameet_websep13,1,2335363.story?coll=chi_tab01_layout
- The Chicago Sun Times
http://www.suntimes.com/news/politics/556347,ctadaley13.article
- The RTA’s press statement on the bailout plan:
http://www.rtachicago.com/CMS400Min/uploadedFiles/9-12-07_RTA%20Reilly%20statement.pdf