Public transit needs reforms, not bailout

June 14, 2007

For anyone worried about the fate of mass transit in the Chicago area, there was the faintest of good news out of Springfield last week: Gov. Blagojevich finally seemed to notice that the CTA, at least, is in deep financial trouble. But any optimism one might feel about the governor's better-late-than-never epiphany is tempered by his proposed solution. That's because he is now insisting that the state budget include at least $100 million for the agency -- a rescue that is wrong in many ways.

Perhaps it's too early in the budget negotiations -- the session is in overtime but talks have barely started -- to criticize the idea. But if there's anything that even the most ardent CTA supporters will tell you, the last thing the agency needs is another state bailout. First, simply giving the CTA more money without addressing the structural problems that are causing chronic annual deficits means that the agency will be back next year, asking for even more money. It also ignores the very real funding problems also faced by Metra and Pace, which primarily serve suburban commuters and paratransit riders.

Also, plenty of Downstaters question why they should divert money to a purely Chicago area problem (though one could argue that plenty of state dollars flow to Downstate programs that don't benefit Chicago area residents). In addition, the governor and legislative leaders still haven't agreed on a funding source for any of the state's needs, let alone mass transit.

There are, however, ideas on the table for funding mass transit from other sources -- and on Wednesday Ald. Edward M. Burke (14th) proposed another one worth studying: some sort of downtown traffic congestion pricing scheme, akin to London's, with the proceeds going to mass transit. The RTA, parent agency of the CTA, Metra and Pace, is backing a plan that relies on a small regional sales tax increase in the six-county area and a new real estate transfer tax in Chicago, although it also would require a state contribution. Unfortunately, the governor still opposes the regional sales tax increase because he thinks it violates his campaign promise to not raise the state sales or income taxes.

Aside from the funding issue, Springfield also must back several structural reforms aimed at giving the RTA more authority and making all transit agencies more accountable. And the CTA has crafted a plan to boost pension funding and streamline operations, which also needs legislative approval.

We believe the best way to address the regional issue is with a regional solution. While mass transit needs some help from the state, it doesn't need a bailout. What the region's transit authorities really need are the reforms, and the regional taxing authority, to solve the problem themselves.

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