The Chicago area’s looming $730 million mass transit fiscal cliff caused by the end of COVID-19-related federal subsidies is an inflection point for northeastern Illinois. Given the importance of transit to our region’s economic vitality and quality of life, sustainable funding for transit is a priority. Any changes to the region’s transit system, considered along with sustainable funding, must be guided by fiscal analysis and best practices.
The Plan of Action for Regional Transit (PART) concluded that northeastern Illinois transit service has historically operated more cost-efficiently than most peer agencies in the U.S. In addition to reviewing potential funding sources to fill the federal subsidy gap, PART also sought to address the need for improved services through more collaboration and coordination among transit providers.
The report suggested two options for changes in transit system governance — consolidation of the Regional Transportation Authority and the CTA, Metra and Pace into one entity or an empowered RTA with the three agencies remaining intact. While consolidation may sound appealing and efficient, proponents of consolidation provide scant details while touting significant cost savings. The Northwest Municipal Conference believes that consolidation would have adverse consequences for the transit services so vital to our region.
Merging the CTA, Metra and Pace, each with its own labor agreements, procedures, debt and legacy costs, would increase overall costs for regional transit. Shifting legacy costs, specifically pension liabilities created by one of the agencies onto a new consolidated body, would not save money but would increase costs for suburban taxpayers.
The more effective strategy — an empowered RTA — would ensure fair, meaningful regional representation while fostering more collaboration and coordination among the service agencies. It would preserve the specialized focus and localized expertise of the service providers.
Talk of consolidating transit governance misdirects attention from the hard conversations that must occur regarding revenue sources and legacy costs to ensure the transit system serves the entire region in the 21st century.
The Northwest Municipal Conference will continue to raise its voice in these difficult conversations and oppose proposed consolidation efforts, which ultimately would compromise transit service for our constituents.
— Karen Darch, president, village of Barrington in the Chicago Tribune
