The New Year ushers in new rules on the
transit debate. Last year, we watched
two critical votes taken only to fail a
full three-fifths majority in the House.
Two bills will be called on Wednesday
that may determine the fate of transit,
SB572 and SB307. Now entering the
regular session, only a simple majority
is required to pass either bill as long
as the Governor keeps his promise to
approve the legislature's choice.
The question remains which bill will be
sent to him? SB572 carries a modest
sales tax increase and SB307 diverts
approximately $421 million from the
state's coffers, depriving many other
critical state programs of funding.
Originally the Governor opposed SB572 on
the grounds that it carries a sales tax
increase. Creating a state capital
package has also held-up the transit
vote. Shortly after the vote on SB572 in
September, the Governor along with the
legislative leaders promised to craft a
capital package in 7-10 days to garner
the votes necessary on the transit
bill. So far, no consensus bill has
emerged and the deadline for a transit
crisis is approaching once again. If no
new funding is made available by January
20th, CTA will cut its bus service by
50% and Pace will also make significant
cuts.
While the state must address capital in
the weeks and months to come, there is
an opportunity to save transit now.
SB572 presents the best
solution to fund transit statewide while
solving the funding crisis in the NE
region. It derives revenue regionally
and fairly, provides
for road enhancements in
the collar counties and it does
not
deprive the GRF in order to support
transit (as SB307 does). Viewed
cumulatively, SB572 will:
§ Deliver
right-sized transit to the suburbs
through the implementation of innovative
and multimodal forms of
transit(supporting RideDuPage and
Ride-in-Kane through the ICE and
Suburban Mobility funds)
§ Ensure
adequate funding for the CTA and
substantially fix the CTA pension
problems, which will prevent the use of
pension contributions to shore-up
operating short-falls
§ Address
the population and job growth in the
suburbs by improving mobility and
reducing congestion through a
county-directed fund for road
enhancements
§
Empower the
RTA with regional planning, fiscal
oversight, and fare and service
coordination.
§
Direct the RTA and the Service
Boards to strengthen minority and female
diversity programs for hiring and
contracting
§
Create 18 new rural and small
urban transit districts throughout
Illinois
§
Increase
existing downstate transit funding by
approximately $27 million increase the
state match from 55% of operating to 70%
§
Give all
Collar Counties representation on the
RTA board and address Metra and Pace
governance issues
New Funds Raised through the Following
Sources:
§
1/4 of 1%
sales tax increase to be imposed by RTA
in 6 northeastern IL counties ($280
million)
§
Up to 3/10
of 1% real estate transfer tax(RETT) to
be imposed by Chicago Mayor and City
Council ($100 million)
§
Continuation
of state funding toward paratransit
services for disabled riders - computed
as an additional 5% match on all
revenues, effective in FY08 ($54 million
already in introduced budget)
§
25%
traditional state-funded match on new
revenues (phased in: -0- in FY08, 12½%
in FY09, 25% by FY10)
Downstate Transit Operating Assistance -
Supporting Transit Statewide
§
Increasing
operating assistance for all downstate
transit agencies and new rural program,
at about $27 million in general revenue
funds beginning in FY09 (additional $10
million immediately)
§
Creating new
fund for competitive capital grants
beginning in FY09 (about $11 million in
general revenue funds)
§
Requiring
minimum local match; allowing extension
of transit service to contiguous
counties
§
Requiring
Illinois Department of Transportation to
promulgate rules on eligible operating
expenses
How SB572 affects the Northeast region?
§
For every $100 spent, twenty-five
cents will be paid in sales tax in
Chicago and fifty cents in the collar
county.
§
In Chicago, for every $100,000
spent on real estate, $300 would go to
the CTA.
Given that working
families are much more likely to use
mass transit, they will pay more under
fare increases than tax increases.
See the CTBA
analysis on how higher sales taxes and
increased mass
transit fares affect working people.
Will transit modernize or erode?
All corners of the political spectrum
unanimously support SB572. Both the
Chicago Tribune and the Sun-Times have
repeatedly voiced their support for the
bill. Initially, brought to the floor
for house vote on September 4, the bill
received 61 votes in favor, including
five Republicans.
Resources:
Civic
organizations release statement urging
legislators to make the right choice and
vote for SB572.
For further
information, please contact Dia
Cirillo at
dcirillo@ctbaonline.org.
Hear
What the Candidates Have to Say