Introduction to Transit Reform
Labor leaders say their vision for transit reform can save union jobs and lower bus and train fares — urging state lawmakers to pass their bill to reshape how CTA, Metra and Pace operate as soon as next year.
The Proposed Bill
Some state senators of the Transportation Committee seemed receptive Tuesday to the labor group-written bill that seeks to empower the Regional Transportation Authority over the CTA, Metra and Pace. The bill also seeks to build an RTA police force and a cadre of “transit ambassadors” to help provide information to riders.
Empowering the RTA
The reforms would be in exchange for $700 million-plus a year of state money to close an impending transit funding gap when federal COVID-19 grants run out next year. Suburban legislators and representatives from collar county transit departments also seemed to favor the bill, which could avoid the approach of the Metropolitan Mobility Authority Act, a competing bill that seeks to combine all four transportation agencies into one.
Avoiding Consolidation
Chicago Federation of Labor President Bob Reiter said that proposal would be a mistake. “Consolidation would be taking a sledgehammer to the system we have now without appreciation for what we can do to fix it with constituent participation across the board,” Reiter told the committee at the Bilandic Building in the Loop. Reiter said he prefers to strengthen the RTA, giving it the power to set fares and hold the other agencies accountable, to avoid potentially killing the union jobs governed by separate and complex labor regulations across the transit agencies.
Benefits of the Proposed Bill
Several lawmakers and labor leaders talked about creating a transit system that could mimic the fast, reliable and frequent transit in Germany, where the Senate delegation traveled last year. State Sen. Ram Villivalam, D-Chicago, head of the committee, said Munich, Germany, was example of how several disparate transit agencies could operate well under one umbrella agency. Keeping the current transit agencies would have the added benefit of maintaining the experience within their ranks, said state Sen. Donald P. DeWitte of St. Charles, the committee’s Republican minority spokesman.
Retaining Expertise
“They are all different businesses,” DeWitte said. “That expertise in each segment is absolutely necessary in this process.” Some suburban lawmakers said they feared a shift of decision-making power to the city under the consolidation bill. They said a strengthened RTA would retain some of the decision-making powers within the agencies.
Key Provisions of the Bill
The labor-backed bill, first presented in February, also seeks to reduce the fare box recovery ratio — a state-mandated proportion of revenue the transit agencies must recoup from riders. Illinois’ 50% ratio — already one of the nation’s highest — would be reduced to 25% in 2026, then to 15% in 2028, before being brought to the Legislature after 2029 for reconsideration, said Frances Orenic, legislative director of the AFL-CIO. The bill also seeks to implement a road usage charge, which is meant to supplement the motor fuel tax, so even electric cars pay a tax for using the road.
Goals of the Bill
Marc Poulos, executive director of the International Union of Operating Engineers, Local 150, said the goal of the bill is to reduce fares to make public transit a more popular and accessible option. Both bills under consideration would create a single-fare system, so a ticket on the CTA could be used on Metra or Pace.
Conclusion
Transit agency leaders say a bill needs to be passed by the end of May so funds can be appropriated in time for the so-called “fiscal cliff” when COVID-19 funding evaporates. The proposed bill has the potential to reshape the transit system in Illinois, making it more efficient and accessible to riders.
FAQs
Q: What is the main goal of the labor-backed bill?
A: The main goal of the bill is to empower the Regional Transportation Authority over the CTA, Metra, and Pace, and to reduce fares to make public transit a more popular and accessible option.
Q: What is the fare box recovery ratio, and how would the bill change it?
A: The fare box recovery ratio is the state-mandated proportion of revenue the transit agencies must recoup from riders. The bill would reduce the ratio from 50% to 25% in 2026, and then to 15% in 2028.
Q: What is the road usage charge, and how would it work?
A: The road usage charge is a tax on the use of roads, meant to supplement the motor fuel tax, so even electric cars pay a tax for using the road.
Q: What is the deadline for passing the bill?
A: The bill needs to be passed by the end of May so funds can be appropriated in time for the so-called “fiscal cliff” when COVID-19 funding evaporates.
