New transit authority unveils $5B budget mixing cuts, more spending
(The Center Square) – The newly-formed Northern Illinois Transit Authority is engaging with counties, public transit riders and transit experts to pass its proposed $5.04 billion budget for the upcoming year.
NITA is composed of transit organizations that serve Chicago and the city’s suburbs, including the Chicago Transit Authority, Pace bus system and Metra commuter rail network.
The organization was created earlier this year as part of a broader effort to increase funding for public transit statewide.
Compared to the proposed NITA budget, the RTA’s last budget was $4.35 billion this year.
In a presentation at the NITA Board of Directors meeting Thursday, interim Chief Financial Officer Tom McKone explained the purpose of the larger budget and where the taxpayer funds will come from.
“It’s a balanced budget, a total of $5 billion,” McKone said. “The total region-wide revenues. Those are comprised of the NITA sales tax, along with system-generated revenues and about 30% of it coming from the State of Illinois sources.”
McKone said that despite the increased total budget, the underlying agencies have found ways to get more out of existing services while spending less, beyond what was already required to be identified by the act creating NITA.
“Cost savings not only to the level that’s mandated by the NITA Act, but going beyond that. So, hitting the $46.9 million, but then also sort of increasing that to capture $60.1 million in efficiencies. That’s across 35 total efficiencies that have been identified by the service boards to hit that number,” McKone said.
The CFO noted the new budget also includes $16.1 million in other cost savings across the network, making the total savings roughly $76.2 million.
Part of the NITA Act requires that at least 25% of the budget be funded through system-generated revenue in the upcoming two budgets, and at least 20% beginning in 2029. The system will meet the requirement by taking out credit against future revenue over the next three years.
Of the initiatives within the budget, $23 million will go toward reimbursing the boards of CTA, Pace and Metra for reduced-fare programs.
Another $54.6 million will be put toward safety and security needs for the transit systems, and $27.9 million for increased staffing across the system – including an increased auditing department.
McKone highlighted that within the Metra budget is a pilot program on the Rock Island line between Chicago and Joliet, which is aimed at increasing the amount and frequency of service for riders.
Potential risks also exist for the budget, according to McKone.
“Both the regional and the global economic risks associated with dependency on the sales tax. Obviously, we’ve seen a lot of inflation this year and that has taken a bite out of our expenses,” McKone said. “We are spending another $80 million more in fuel expenses projected for 2027 than we thought we would at this time last year.”
The board held a public comment period at their meeting, and are seeking more public input before passing a budget. The budget has been presented to five of the six county boards that have service within their jurisdiction, with a planned meeting in DuPage county Nov. 24.
The board the public to submit its thoughts on the budget and what it feels should be prioritized by email.
Partly Sunny
