Lawmakers Pass $1.5B Transit Funding Package, No Statewide Tax Hikes
In a significant move for public transportation, Illinois lawmakers passed a $1.5 billion transit funding package on Thursday night. This new legislation aims to bolster transit agencies, particularly in the Chicago area. Crucially, the plan avoids any new statewide tax increases that were proposed in earlier discussions.
Details of the Transit Funding Bill
The approved funding package diverts sales tax revenue from motor fuel purchases. This money is directed towards operational expenses for public transportation. The legislation also allocates interest from the Road Fund to support transit efforts.
Despite raising essential funds, frustrations arose among some lawmakers from downstate areas. They were concerned that the funding failed to meet their expectations, particularly as downstate transit agencies will receive $129 million, which is less than the $200 million they had anticipated.
Funding Allocation
- $860 million from redirected sales tax revenue on motor fuel.
- $200 million from interest in the Road Fund, which usually finances road construction.
- $478 million generated from a 0.25% increase in the Regional Transportation Authority sales tax.
- Increased tolls on northern Illinois toll roads, raising fees by 45 cents, contributing up to $1 billion annually.
The State House and Senate granted their approval with a 72-33 and 36-21 vote, respectively, signaling an end to lengthy negotiations. Notably, this plan excludes prior proposals for new taxes on deliveries, streaming services, and entertainment tickets.
Challenges Facing Transit Agencies
Transit authorities, including the Regional Transportation Authority, Chicago Transit Agency, Metra commuter rail, and Pace Suburban Bus, face funding shortfalls. They are projected to face a deficit of $230 million by 2026, escalating to $834 million in 2027 and $937 million in 2028. Without intervention, they may have to cut services by as much as 40%.
Supporters emphasize the importance of transit funding. Bill sponsor Rep. Eva-Dina Delgado remarked on the urgent need for reliable transit systems amidst declining post-COVID ridership. She noted, “We are changing our public transit system for the first time in five decades.”
Concerns From Downstate Lawmakers
Republican lawmakers expressed dissatisfaction with the focus on Chicago at the expense of downstate areas, concerned that the new funding streams could jeopardize road construction funds. Rep. Ryan Spain emphasized that this bill posed risks to essential road projects, creating imbalances in the Road Fund.
New Transit Authority and Safety Reforms
The legislation also introduces the Northern Illinois Transit Authority, aimed at enhancing coordination among transit services. This authority will oversee a universal fare system and improve scheduling across agencies.
Furthermore, the bill proposes creating a law enforcement task force to focus on public safety in transit systems. This includes addressing issues related to homelessness and mental health, aiming to ensure passenger safety.
With the transit funding measures set to take effect on June 1, stakeholders anticipate improvements to transit services, vital for the state’s infrastructure and commuting efficiency.
