Christmas Comes Early For Local Transit Agencies
CHICAGO (WBBM) - Chicago-area transit agencies are getting a huge holiday present from the state and transit officials insist it is exactly what they expected.
Although the state is an estimated $15 billion in debt, it has suddenly found the money needed to pay all that was promised to the CTA, Metra and Pace through the end of the 2010 fiscal year in June.
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"To date, we have invoiced the state for $451 million," said Regional Transportation Authority (RTA) spokesperson Diane Palmer. "We have received all but $22 million, and we have received indications from the state comptroller that the balance of the funding should come to us very soon, probably this week."
But it does not mean that the state is caught up in its dealings with the RTA, the conduit through which state subsidies flow to the transit agencies, or that the agencies are suddenly flush. This merely pays off working cash notes, money borrowed by the RTA and already distributed to the CTA, Metra and Pace. Already this fiscal year, Palmer said, the state is $148 million behind.
Gov. Pat Quinn promised that the state would pay what was owed for 2010 by year's end. Without the money, the RTA was looking at the inability to borrow any further and the need to begin repaying the working cash notes in February. That could have forced service cuts and fare hikes.
Earlier Wednesday, CTA President Richard Rodriguez said that the RTA has made all payments due to the agencies, although he conceded that much of it came from borrowed money.
"Sure, (the state's inability to pay in a more timely fashion is) troubling to everyone, but the reality is that the state has kept its commitment and it continues to give us what we need to continue doing what we're doing," he said.
Rodriguez said CTA has not planned for contingencies that could force it to increase fares or reduce service.
Part of the agencies' funding agreement with Quinn, reached a year ago, was that CTA would not increase its fares in 2010 or 2011.
"Our commitment still stands with the governor that they would pick up the debt service on the bonds that were issued and we would not raise fares for the next two years -- and 2011 is the second year," he said.
CTA last undertook service cuts in February. At that time it eliminated a handful of express bus routes that paralleled local bus routes and trimmed hours on dozens of other routes, but did not eliminate service completely on any line.
Its last fare increase was in January 2009.
