Latest news with #RamVillivalam
Yahoo
2 days ago
- Business
- Yahoo
Illinois legislators left Springfield without funding public transit (for now). Here's what that means for CTA, Metra, Pace
For months, Chicagoland's transit agencies have sounded an alarm: If lawmakers don't plug a looming $771 million budget gap, they warned, residents will experience drastic service cuts on the CTA, Metra and Pace next year. Over the weekend, Illinois lawmakers adjourned their spring legislative session without passing legislation that would avert the fiscal cliff. The Regional Transportation Authority, which oversees CTA, Metra and Pace, has warned that it will have to start planning for dramatic cuts to transit service. Next year, riders could experience a 40% reduction in transit service — with some rail lines and bus routes eliminated entirely — the RTA has warned. Nearly 3,000 workers could lose their jobs. Still, service cuts are not slated to start until COVID-19 relief funding runs out in January, or even later into next year. That means there is still time for lawmakers to go back to Springfield to take another stab at passing legislation that would plug the budget gap. However, any legislation passed after May 31 that would take effect before June 2026 requires — per the state's constitution — a three-fifths majority in both chambers rather than a simple majority. That makes lawmakers' task harder. Here's what Chicagoans need to know about the future of transit service in the metro area. In short, lawmakers in both chambers introduced legislation that would have revamped the structure of the RTA, which oversees the CTA, Metra and Pace. A Senate proposal that included funding mechanisms for those reforms and to avert the looming fiscal cliff — largely in the form of various taxes and fees — failed to get over the finish line in the House. As the spring legislative session came to a close, a mantra of 'no funding without reform' came to dominate conversations in Springfield about the looming transit fiscal cliff. Bills introduced last week would have replaced the RTA with a new entity called the Northern Illinois Transit Authority that would be given broad planning authority. But after months of behind-the-scenes negotiations, lawmakers only began publicly sharing their ideas for revenue generation to avert the fiscal cliff on Thursday. Those ideas included a 50 cent tollway tax that got shut down after fierce opposition from organized labor and suburban lawmakers and a $1.50 retail delivery fee that garnered similarly ferocious opposition from powerful business groups. Shortly before May 31 gave way to June 1, the Senate approved a version of the bill that would have included the $1.50 package delivery fee. But the bill, sponsored by Democratic Sen. Ram Villivalam, was never called for a vote in the House. The legislature adjourned in the early hours of Sunday morning without passing any transit legislation at all. While the General Assembly has been engaged in negotiations over ways to overhaul public transit in the Chicago area for months, if not longer, state Rep. Kam Buckner, one of the sponsors of the House's transit reform bill, noted the Senate's approach was different than the House's in that the Senate decided to include revenue options in its proposal while the House wanted to discuss operational fixes first before getting into how it'd all be funded. Buckner noted that he and Chicago Rep. Eva-Dina Delgado, the main sponsor of the House's transit bill, were among the key House Democratic negotiators for the entire state budget, and Buckner said he was concerned about a transit revenue vote in the House derailing the budget talks. Buckner also said the House wasn't aware that the $1.50 delivery proposal from the Senate was a possibility, 'which is why we never talked about it with our folks.' All in all, he felt it would have been 'disingenuous' and 'irresponsible' to ask fellow House members to vote on the bill without being more familiar with its revenue proposals. 'It jeopardizes the integrity of what we've built in the House and we made the right call,' Buckner said of the House's decision to not call the bill. In a statement on Monday, Villivalam reiterated his consistent message on the issue that 'there will be no funding without reform' and said he looked forward to working with Delgado and Buckner 'to get this package of reforms and funding across the finish line.' Yes. Lawmakers could go back to Springfield later this year to pass transit legislation that would plug the funding gap. Any laws passed after the end of May taking effect before June 2026 require three-fifths approval in both chambers to pass, which makes the path forward more difficult than it was on May 31. While lawmakers will be scheduled to return to Springfield for the fall veto session, most likely in October or November, there's nothing stopping them from reconvening before that. Lawmakers had already left the door open to the possibility of coming back to the Capitol in the summer if they need to shore up the state budget in response to any federal action from President Donald Trump that could cause Illinois to lose critical federal funding. Meanwhile, the RTA said, transit agencies will have to make their budgets for next year assuming they're not going to get any more money. The RTA has said that layoffs could be announced as early as September. It's not clear exactly what might happen if transit workers are told they are facing layoffs and then the legislature, weeks or months later, passes a law ensuring more funding. 'It's going to be chaotic,' said P.S. Sriraj, the director of the Urban Transportation Center at the University of Illinois Chicago. Workers who get pink-slipped would have to start looking for other jobs, he said. Then, if agencies learn they have more funding available and can start ramping up plans for more service, they may have to go out and hire new employees. 'You're now behind the 8-ball,' said Sriraj, who added that he believed the legislature would ultimately find funding for transit. Buckner also indicated he understood the urgency for the state to come up with a solution on transit while the CTA is in the midst of crafting their budget. 'It's very clear to me that they need some stability and need some certainty to know what to do if they're going to balance their books,' said Buckner. Service cuts throughout the Chicago metro area would be drastic if the legislature doesn't take further action, transit agencies have warned. Service on half of the CTA's eight rail lines could be cut entirely or at least on whole branches of the line, the RTA has said. More than 50 'L' stations could close or see drastic service cuts. Frequencies on remaining rail lines would be cut between10 to 25%. And as many as 74 out of the CTA's 127 bus routes — close to 60% of them — could be eliminated. That could leave Chicago with fewer bus routes than Madison, Wi. or Kansas City, according to the RTA. On Metra, early morning and late evening trains would be cut. Trains might run only once an hour on weekdays and once every two hours on weekends. The Metra Electric Blue Island Branch might be slashed entirely. On Pace buses, weekend service could be cut entirely. Federally-mandated ADA paratransit service would still exist, but its service area could be slashed by 66% on the weekends. And as more people take to their cars because of diminished service, traffic throughout the area — which is already among the worst in the nation — could worsen. We don't know exactly where service will be cut. Here's what we do know about the process: This month, the RTA will give the CTA, Metra and Pace directions for the creation of their 2026 budgets. RTA spokesperson Tina Fassett Smith said in a statement over the weekend that its budget must, by law, 'only include funding we are confident the system will receive in 2026.' It will then be up to the agencies to decide how to adjust their planned service for next year. Staff at each agency will prepare proposals and budgets will be released publicly in the fall. As is the case in a typical year, each agency will hold public budget hearings in October or November. Because the agencies receive federal funding, they will almost certainly go through a Title VI process to make sure that any proposed cuts — or fare increases — do not disproportionately impact people of color or low-income people. For instance, the agencies will have to show that if they are cutting service 40% for riders overall, they are not cutting service by a significantly higher percentage for Black riders or low-income riders. If there will be a disparate impact from proposed cuts, they will have to show that they are taking steps to mitigate those effects. The Title VI process would include public hearings with the opportunity for riders to share their concerns. As the agencies evaluate where to cut service, said Sriraj, they'll be weighing Title VI responsibilities along with ridership metrics on various routes and lines and the availability of alternative modes of transit near routes slated for cuts. The respective boards of the CTA, Metra and Pace would ultimately be responsible for approving any proposed cuts or fare hikes. Cuts would begin in January at the earliest. Maggie Daly Skogsbakken, a spokesperson for Pace, said that though the agency's budget would take effect Jan. 1, it's possible the cuts would not take effect until later into the year. She also said that in the past, the agency has phased in large service changes rather than make them all at once. That could happen in this case, she said. Metra spokesperson Michael Gillis similarly said the soonest cuts would begin would be in January. The CTA did not directly address a question about when cuts would take effect, but said in a statement it would 'plan for a number of scenarios that could occur in 2026.' 'We are committed to working on behalf of our riders and employees, and we look forward to continuing the work to secure funding for Chicago-area public transit,' the agency said.
Chicago Tribune
2 days ago
- Business
- Chicago Tribune
Illinois legislators left Springfield without funding public transit (for now). Here's what that means for CTA, Metra, Pace
For months, Chicagoland's transit agencies have sounded an alarm: If lawmakers don't plug a looming $771 million budget gap, they warned, residents will experience drastic service cuts on the CTA, Metra and Pace next year. Over the weekend, Illinois lawmakers adjourned their spring legislative session without passing legislation that would avert the fiscal cliff. The Regional Transportation Authority, which oversees CTA, Metra and Pace, has warned that it will have to start planning for dramatic cuts to transit service. Next year, riders could experience a 40% reduction in transit service — with some rail lines and bus routes eliminated entirely — the RTA has warned. Nearly 3,000 workers could lose their jobs. Still, service cuts are not slated to start until COVID-19 relief funding runs out in January, or even later into next year. That means there is still time for lawmakers to go back to Springfield to take another stab at passing legislation that would plug the budget gap. However, any legislation passed after May 31 that would take effect before June 2026 requires — per the state's constitution — a three-fifths majority in both chambers rather than a simple majority. That makes lawmakers' task harder. Here's what Chicagoans need to know about the future of transit service in the metro area. What happened in the legislature last week? In short, lawmakers in both chambers introduced legislation that would have revamped the structure of the RTA, which oversees the CTA, Metra and Pace. A Senate proposal that included funding mechanisms for those reforms and to avert the looming fiscal cliff — largely in the form of various taxes and fees — failed to get over the finish line in the House. As the spring legislative session came to a close, a mantra of 'no funding without reform' came to dominate conversations in Springfield about the looming transit fiscal cliff. Bills introduced last week would have replaced the RTA with a new entity called the Northern Illinois Transit Authority that would be given broad planning authority. But after months of behind-the-scenes negotiations, lawmakers only began publicly sharing their ideas for revenue generation to avert the fiscal cliff on Thursday. Those ideas included a 50 cent tollway tax that got shut down after fierce opposition from organized labor and suburban lawmakers and a $1.50 retail delivery fee that garnered similarly ferocious opposition from powerful business groups. Shortly before May 31 gave way to June 1, the Senate approved a version of the bill that would have included the $1.50 package delivery fee. But the bill, sponsored by Democratic Sen. Ram Villivalam, was never called for a vote in the House. The legislature adjourned in the early hours of Sunday morning without passing any transit legislation at all. While the General Assembly has been engaged in negotiations over ways to overhaul public transit in the Chicago area for months, if not longer, state Rep. Kam Buckner, one of the sponsors of the House's transit reform bill, noted the Senate's approach was different than the House's in that the Senate decided to include revenue options in its proposal while the House wanted to discuss operational fixes first before getting into how it'd all be funded. Buckner noted that he and Chicago Rep. Eva-Dina Delgado, the main sponsor of the House's transit bill, were among the key House Democratic negotiators for the entire state budget, and Buckner said he was concerned about a transit revenue vote in the House derailing the budget talks. Buckner also said the House wasn't aware that the $1.50 delivery proposal from the Senate was a possibility, 'which is why we never talked about it with our folks.' All in all, he felt it would have been 'disingenuous' and 'irresponsible' to ask fellow House members to vote on the bill without being more familiar with its revenue proposals. 'It jeopardizes the integrity of what we've built in the House and we made the right call,' Buckner said of the House's decision to not call the bill. In a statement on Monday, Villivalam reiterated his consistent message on the issue that 'there will be no funding without reform' and said he looked forward to working with Delgado and Buckner 'to get this package of reforms and funding across the finish line.' Do lawmakers still have time to avert the fiscal cliff? Yes. Lawmakers could go back to Springfield later this year to pass transit legislation that would plug the funding gap. Any laws passed after the end of May taking effect before June 2026 require three-fifths approval in both chambers to pass, which makes the path forward more difficult than it was on May 31. While lawmakers will be scheduled to return to Springfield for the fall veto session, most likely in October or November, there's nothing stopping them from reconvening before that. Lawmakers had already left the door open to the possibility of coming back to the Capitol in the summer if they need to shore up the state budget in response to any federal action from President Donald Trump that could cause Illinois to lose critical federal funding. Meanwhile, the RTA said, transit agencies will have to make their budgets for next year assuming they're not going to get any more money. The RTA has said that layoffs could be announced as early as September. It's not clear exactly what might happen if transit workers are told they are facing layoffs and then the legislature, weeks or months later, passes a law ensuring more funding. 'It's going to be chaotic,' said P.S. Sriraj, the director of the Urban Transportation Center at the University of Illinois Chicago. Workers who get pink-slipped would have to start looking for other jobs, he said. Then, if agencies learn they have more funding available and can start ramping up plans for more service, they may have to go out and hire new employees. 'You're now behind the 8-ball,' said Sriraj, who added that he believed the legislature would ultimately find funding for transit. Buckner also indicated he understood the urgency for the state to come up with a solution on transit while the CTA is in the midst of crafting their budget. 'It's very clear to me that they need some stability and need some certainty to know what to do if they're going to balance their books,' said Buckner. What would service cuts look like on the CTA, Metra and Pace? Service cuts throughout the Chicago metro area would be drastic if the legislature doesn't take further action, transit agencies have warned. Service on half of the CTA's eight rail lines could be cut entirely or at least on whole branches of the line, the RTA has said. More than 50 'L' stations could close or see drastic service cuts. Frequencies on remaining rail lines would be cut between10 to 25%. And as many as 74 out of the CTA's 127 bus routes — close to 60% of them — could be eliminated. That could leave Chicago with fewer bus routes than Madison, Wi. or Kansas City, according to the RTA. On Metra, early morning and late evening trains would be cut. Trains might run only once an hour on weekdays and once every two hours on weekends. The Metra Electric Blue Island Branch might be slashed entirely. On Pace buses, weekend service could be cut entirely. Federally-mandated ADA paratransit service would still exist, but its service area could be slashed by 66% on the weekends. And as more people take to their cars because of diminished service, traffic throughout the area — which is already among the worst in the nation — could worsen. Which CTA train lines and bus routes would be eliminated? Which 'L' stations would close? We don't know exactly where service will be cut. Here's what we do know about the process: This month, the RTA will give the CTA, Metra and Pace directions for the creation of their 2026 budgets. RTA spokesperson Tina Fassett Smith said in a statement over the weekend that its budget must, by law, 'only include funding we are confident the system will receive in 2026.' It will then be up to the agencies to decide how to adjust their planned service for next year. Staff at each agency will prepare proposals and budgets will be released publicly in the fall. As is the case in a typical year, each agency will hold public budget hearings in October or November. Because the agencies receive federal funding, they will almost certainly go through a Title VI process to make sure that any proposed cuts — or fare increases — do not disproportionately impact people of color or low-income people. For instance, the agencies will have to show that if they are cutting service 40% for riders overall, they are not cutting service by a significantly higher percentage for Black riders or low-income riders. If there will be a disparate impact from proposed cuts, they will have to show that they are taking steps to mitigate those effects. The Title VI process would include public hearings with the opportunity for riders to share their concerns. As the agencies evaluate where to cut service, said Sriraj, they'll be weighing Title VI responsibilities along with ridership metrics on various routes and lines and the availability of alternative modes of transit near routes slated for cuts. The respective boards of the CTA, Metra and Pace would ultimately be responsible for approving any proposed cuts or fare hikes. When would service cuts begin? Cuts would begin in January at the earliest. Maggie Daly Skogsbakken, a spokesperson for Pace, said that though the agency's budget would take effect Jan. 1, it's possible the cuts would not take effect until later into the year. She also said that in the past, the agency has phased in large service changes rather than make them all at once. That could happen in this case, she said. Metra spokesperson Michael Gillis similarly said the soonest cuts would begin would be in January. The CTA did not directly address a question about when cuts would take effect, but said in a statement it would 'plan for a number of scenarios that could occur in 2026.' 'We are committed to working on behalf of our riders and employees, and we look forward to continuing the work to secure funding for Chicago-area public transit,' the agency said.
Time Out
2 days ago
- Business
- Time Out
Steep service cuts could be coming to Chicago public transit—here's why
Chicago's transit future just missed its train. State legislators wrapped their spring session this weekend without passing a critical funding and reform package meant to plug a $770 million hole in the Regional Transportation Authority's 2026 budget, as reported by WTTW. Now, with federal COVID relief money set to expire, the Chicago Transit Authority, Metra and Pace are staring down a fiscal cliff—and the consequences could be dire. If nothing changes, officials warn the region could see 40-percent system-wide service cuts beginning in 2026, along with nearly 3,000 layoffs. The CTA alone may be forced to shut down half of its L lines and eliminate 60-percent of its bus routes, a move that would cut off service for 500,000 Chicagoans and strand 260,000 workers. RTA leaders have called it a 'regional emergency.' The funding fix that almost was was a bill championed by state Senator Ram Villivalam that paired governance reform with a bundle of controversial taxes, including a $1.50 delivery fee on food and packages and a rideshare surcharge. It passed the Senate late Saturday, but never made it to a House vote before the deadline struck midnight. 'It's clear that many in both the House and Senate support transit,' said RTA spokesperson Tina Fassett Smith, per WGN. 'Balancing regional interests is challenging, but we are ready to continue our work to achieve consensus and deliver a solution.' Under the proposed legislation, the RTA would've been restructured as the Northern Illinois Transit Authority, overseeing a unified fare system and capital planning across the three transit agencies. Governor JB Pritzker expressed support for reforms but emphasized that funding without accountability is a non-starter. 'You can't put money into something that doesn't guarantee [safety and reliability] at the start,' he said, according to The Chicago Tribune. The fallout could ripple well beyond city limits. Metra may slash early and late trains, Pace could drop weekend service and ADA paratransit would shrink by two-thirds. The region could lose an estimated $2.6 billion in GDP annually and see 90 million fewer transit trips.
Eater
2 days ago
- Business
- Eater
Illinois Lawmakers Tried to Implement a ‘Pizza Tax' on Food Deliveries
Springfield lawmakers tried to pass a $1.50 food delivery tax over the weekend that would have impacted restaurants across Illinois. The proposal's details were unveiled hours before the Springfield legislative session was set to expire on Sunday, June 1. The bill hastily passed through the Senate late on Saturday, May 31, but failed to make it to the House for a vote. The increase would have affected any food delivery by a motor vehicle (bicycles would be excluded) made online and was part of the 'The Retail Delivery Climate Impact Fee Act.' It would have added $1.50 to each delivery starting on January 1, and increased annually in step with the federal rate of inflation. The tax had been ambiguously teased for days as several media outlets reported a $771 million regional transportation shortfall for the CTA, PACE, and Metra. Colorado and Minnesota have implemented retail delivery fees that target companies like Amazon and Uber. The tax is seen as an alternative to motor fuel tax hikes. Lawmakers only revealed specifics to the public on Saturday afternoon, but when details began to circulate, restaurant allies lambasted the tactic, calling it a 'pizza tax,' and criticized lawmakers for a lack of transparency. The transportation bill's sponsor, Chicago Democrat Sen. Ram Villivalam, defended his actions. CTA and other transportation officials say they need more money, or critical services and jobs could be cut. Public transportation is essential for the commutes of many restaurant workers. The proposal attempted to carve out exceptions for prescription medicine and grocery deliveries, with knowledge that the elderly, disabled, and others with mobility issues depend on services for their livelihoods. Using delivery isn't so much a choice for members of these populations. When combined with federal cuts to Medicaid, many of the state's most vulnerable could see costs balloon. However, there's doubt that the exception, as presented, would apply to all grocery and medicine orders. Third-party couriers, which have emerged as influential lobbyists across the country, predictably opposed the bill. When contacted on Saturday, a DoorDash spokesperson called the tax hike 'unnecessary.' The company stressed that deliveries aren't 'just for fancy sushi dinners' as they serve the aforementioned with mobility issues while '[bridging] the gap for families living in food deserts who need groceries, and helping low-income customers stretch their already-strained budgets further.' 'We will continue to work with Illinois lawmakers to help them better understand the unintended consequences of these kinds of policies that ultimately do more harm than good,' DoorDash's statement also reads. While Gov. J.B. Pritzker endorses the need for transit reform and improvements, according to a transcript from Capital Fax, the governor was somewhat evasive when asked if he supported the delivery tax. He's gone on the record saying he opposes hikes that impact a broad swath of the population, and food delivery would seemingly fall under that category. Pritzker would rather see increases to sales tax, or individual and corporate income taxes. Lawmakers will likely take up the discussion once more during the fall session in Springfield. Sign up for our newsletter.
Yahoo
5 days ago
- Business
- Yahoo
Illinois tolls could go up by 50 cents in Villivalam's transit proposal
CHICAGO — State lawmakers met Thursday to discuss how to avoid a large public transit budget shortfall and the plan that was discussed could mean toll increases and public charging station fees for electric vehicles. Facing a $770 million budgetary gap in 2026 due to the expiration of Federal COVID-19 grant funding, the Regional Transportation Authority (RTA) has warned riders could see significant service cuts soon, if the shortfall is not addressed. Illinois lawmakers debate plan to overcome $770 million CTA budget shortfall On Thursday, State Sen. Ram Villivalam presented a plan to the Senate Transportation Committee that he says could help prevent Chicago-area transit agencies from going over the edge. The proposed legislation would create the Northern Illinois Transit Authority, which would shift oversight of the CTA, Metra and Pace from the Regional Transit Authority to a new 20-member board. IDOT: Drivers taking Kennedy Expressway from downtown to O'Hare can use express lanes again starting Saturday The plan would cover the pending fiscal cliff, but agencies say even more money is needed to make long-term changes to transit systems. The bill, if passed, would also create a unified fare system that would provide unarmed staff for customer service assistance at stations and on trains, and develop a law enforcement task force with a regional safety strategy in mind. The revenue proposals in Villivalam's plan would include toll increases up to 50 cents, a public electric vehicle charging fee of 6 cents per kilowatt hour, and the extension of the Real Estate Transfer Tax and rideshare fee to suburban Cook County and the collar counties. Negotiations on Villivalam's plan are ongoing with some changes possible. State lawmakers now have until Saturday at midnight to pass a transit budget plan, otherwise, service cuts could begin to take place. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
