5 years later, Metra, CTA, Pace nowhere near pre-COVID levels
Ridership on Metra, the Chicago Transit Authority and Pace is still down 30% from pre-pandemic levels. The agency overseeing all three needs to look at spending before demanding $1.5 billion from taxpayers.
The Chicago area’s transportation agencies are still 30% below pre-pandemic ridership, but instead of cutting costs to serve fewer riders they are asking taxpayers for $1.5 billion more.
Metra, the Chicago Transit Authority and Pace have recovered some from the pandemic, but are still well below where they were five years ago.
Commuters’ hybrid work schedules mean trains and buses aren’t busy like before. That’s true for most of the country, which in itself isn’t bad. What’s bad is throwing money at a problem without thinking about how to address it.
The Regional Transportation Authority, which administers the three transit agencies, is asking the state for $1.5 billion. If self-generated revenue from riders is down, how would an extra $1.5 billion fix RTA’s deficits in future years?
Rising costs are mostly driven by labor and personnel expenses. For the CTA, personnel takes up more than two-thirds of its budget.
By one estimate, CTA labor costs will grow by $300 million dollars from 2021 to 2026. Nearly half of their employees don’t work in transit, but administration and management.
If ridership doubled, the RTA would ask for increased funding to meet demand. Now ridership is down, but they still want more funding despite less demand.
Transportation is vital to the state economy. Commuters rely on it for work and can support local businesses on their way. But the state should spend money based on how many people it’s serving.
This is only an issue now because federal pandemic funding is running out, which means the RTA is facing a $700-million shortfall. That’s the shortfall: their ask is for $1.5 billion.
One proposal would tax real estate sales in the Chicago suburbs. Illinoisans already pay the highest property taxes in the country. The Illinois Realtors argue this would further hurt housing affordability, especially for first-time buyers, in a market already strained by high prices and interest rates.
“Every time you raise closing costs, you decrease purchasing power,” said Illinois Realtors CEO Jeff Baker. “You make it harder for people to buy their home.”
A private business facing a 30% drop in customers would cut costs and restructure. The RTA should right-size service, eliminate inefficiencies and align spending with current demand before asking taxpayers to pay more.
Transit agencies must adapt to the post-COVID reality. Illinois lawmakers should require clear operational reforms before considering any tax hikes. Supporting transit shouldn’t come at the expense of housing affordability or economic opportunity.