Illinois lawmakers debate plan to overcome $770 million CTA budget shortfall

CHICAGO (WGN) — As public transit workers rallied Thursday for quick legislative action to avert a massive fiscal cliff in next year’s budget, one of transit reform’s lead negotiators, State Sen. Ram Villivalam, presented a plan to the Senate Transportation Committee to avoid sending regional transit agencies over the edge.

“I don’t think any of us standing here … can stomach what will happen if we don’t act on this,” Villivalam said.

The Chicago Transit Authority (CTA) faces a $770 million budgetary gap in 2026 due to the expiration of Federal COVID-19 grant funding. If the shortfall is not addressed, the CTA, Metra and PACE could face an estimated 40% cut to services, leading to thousands of employees losing their jobs.

Villivalam’s proposed legislation would create the Northern Illinois Transit Authority, which would shift oversight of the CTA, Metra and Pace from the Regional Transit Authority to a 20-member board.

Illinois’ Governor, the Mayor of Chicago and the Cook County Board President would each appoint five members to the board, while collar counties would appoint one board member each.

Villivalam’s plan would create a unified fare system that provides unarmed staff for customer service assistance at stations and on trains, and develops a law enforcement task force with a regional safety strategy in mind.

Importantly, Villivalam said the funding estimates would cover the fiscal cliff, but likely won’t amount to the $1.5 billion advocates have been calling for.

“We are happy to see a package that includes revenue, but have major concerns with the revenue proposals in there,” Illinois AFL CIO Frances Orenick said.

Those proposals include a tollway surcharge, a public electric vehicle charging fee, and the extension of the Real Estate Transfer Tax and rideshare fee to suburban Cook County and the collar counties.

“This is a billion-dollar bailout for Mayor Brandon Johnson being paid for by suburban taxpayers without giving them a real voice at the table,” State Sen. Don DeWitte said.

Villivalam described the fee increases as a shared sacrifice.

“Their job is to do what’s needed for the people,” said Tiffany Rebb, a member of ATU Local 241. “Our job is to commute the people.”

Negotiations on Villivalam’s plan are ongoing with some changes possible, but the clock is ticking. State lawmakers have until Saturday at midnight to pass a transit budget plan, otherwise, service cuts could begin to take place.