SPRINGFIELD, Ill. — With the Illinois legislature one day away from a deadline for passing the state’s budget for fiscal 2026, lawmakers have yet to decide on a way to address the looming $770 million deficit for Chicago-area transit agencies.
The Chicago Sun-Times reports that state Sen. Ram Villivalam (D-Chicago) has proposed funding the operations of Metra, the Chicago Transit Authority, and Pace bus service through a combination of moves including a 50-cent tollway surcharge, a 10% tax on rideshires, an electric vehicle charging fee, a real estate transfer tax, and redirection of some suburban sales taxes.
Villivalem said the proposal reflected the “shared sacrifice” needed to address the funding, but it was strongly criticized by suburban and labor officials, the Sun-Times reports. One official in DuPage County called the plan “punitive;” another said it “steals $72 million in DuPage tax revenue.” Even Villivalem acknowledged the ideas would need to be amended if a funding bill was to be passed by the midnight Saturday deadline.
The funding question remains after legislation was introduced that would restructure Chicago’s transit agencies, with a new Northern Illinois Transit Authority replacing the current Regional Transit Authority. The new agency would control the budgets and fare decisions of Metra, the CTA, and Pace, but would not result in a merger of the four agencies into a single body, as had been proposed earlier [see “Illinois lawmakers’ last-minute bill …,” Trains News Wire, May 29, 2025].
The RTA and the operating agencies have said that without funding to address the shortfall, transit service from all three operators will face a 40% cut in service, including drastic reductions in Metra frequencies and suspension of service on four of the eight CTA rail lines [see “Chicago transit agencies paint dire picture …,” News Wire, March 21, 2025].
Not one single word about a fare increase. Toll road users pay what is called a user fee, you use it, you pay for it. Well, if the shoe fits…….
The way I hear it, all of Illinois is a financial disaster area due to quite high union salaries and excessive deficit funding. Maybe garnishing ALL politician salaries can help support transit deficits. (ho-ho)
Roger, the Union salaries you speak off help support the middle class. Thinking like yours is why the middle class in this country is shrinking. Sounds like you might have been a fan of Ronnie’s “ trickle down economics” am I correct?
Chris: I think he is referring to the generous and above average benefits the state pays for the public sector unions. Their pensions and post retirement benefits are some of the most generous in the nation.
For years, the Illinois Legislature kept voting for benefits increases at the same time borrowing against *future* property tax income to pay for it.
This is why so much of Illinois general revenue goes to debt service, the constant annual pay day loans is starting to catch up.
Even the people leaving Illinois are getting bit as when they put their house up for sale, they can’t get asking price because there is so much property tax tied to the property, the house gets discounted.
Every proposal to tier benefits for public sector unions is blitzed by the union as unfair, when nearly everyone knows that the benefit is too large relative to Illinois revenue. A suggestion was once made to tax those benefits after retirement (no matter what state they moved too) to try and offset the massive debt. The bill never got out of committee.
1) I have no trouble with union salaries in the private sector because the need for their employers to survive keeps a check on what is obtainable. 2) Public sector is another matter. Public Safety related agencies employees deserve good salaries due to the nature of their risks and their unions keep the politicians from throwing them to the wolves whenever anyone complains. However, public employees unions for non-safety related government employees are another matter. That’s where the taxpayers get hosed because their unions have too much control over the politicians due to their political contributions and voter drives, resulting in the politicians constantly giving into their demands. All you have to do is look up how very few of the non-safety related government employees ever get dismissed or laid-off compared to the private sector to understand the power of their unions.
This is what happens when a catastrophe is addressed at 11:59 PM on the clock.
Indeed
Agreed