Another Try Toward Funding Transit

CHICAGO (WBBM) - Even in a year filled with unusual political twists, a meeting scheduled Wednesday in Springfield will be out of the ordinary.

WBBM’s Bob Roberts reports.
 
The Democratic governor is sending the Illinois House Republican leader as an emissary to the Democratic Speaker of the House to discuss a proposal to resolve an issue that all agree must be addressed.

Gov. Rod Blagojevich said Tuesday that he, House GOP leader Tom Cross (R-Oswego) and both Senate leaders have “signed off” on a new proposal to provide additional revenue streams to pay the operating costs of the CTA, Metra and Pace.

Now, they have to sell the idea to Speaker Michael Madigan (D-Chicago), who has continued to back a proposal to provide new funding streams through a regional increase in the sales tax and an increase in the Chicago title transfer tax, even though Blagojevich has pledged repeatedly to veto any such bill. 

Madigan steadfastly refused to take part in the transit funding discussions that have taken place in recent weeks, involving the other legislative leaders, the governor and his staff. 

“I'm optimistic that we will have a very sound, solid, long-term proposal to address the RTA-CTA problem that includes accountability and a sustainable source of revenue that does not raise taxes on people,” Blagojevich said. 

The governor refused to discuss the new proposal in any detail, pending the meeting between Cross and Madigan. But he said the proposal would provide enough money to cover both operating costs and some of the capital needs facing Chicago area mass transit, and would include provisions for greater RTA control over the services provided by the CTA, Metra and Pace. 

He did not say if it would address one of the thorniest issues facing the agencies, the CTA's collapsing pension fund. The sales tax legislation contains provisions for a comprehensive overhaul of the CTA pension system, increased worker contributions and establishment of a pension trust fund.

CTA labor contracts negotiated earlier this year depend on approval of that portion of the legislation.  The CTA's contract agreements with its unions will be voided if the legislation is not approved prior to Jan. 1. 

The comments by Blagojevich came as a surprise to Metra and Pace, whose spokespersons said they had not been advised that a funding alternative had emerged.  Spokespersons for the CTA and RTA had no immediate comment.

The CTA and Pace are prepared to implement fare hikes and service cuts Nov. 4, and have already unveiled proposed 2008 budgets that call for a second round in January.  Metra is scheduled to unveil a 2008 budget on Thursday, and has already said that it is likely to include fare increases of up to 20 percent as early as Feb. 1, along with “decimated” service weekdays after 9 p.m. and on weekends.