Metra fare hikes: 40% service reduction looms without funding fix, director says

The clock is ticking for transit agencies facing a crater-sized budget hole, Metra Executive Director Jim Derwinski warned at a Wednesday meeting.

“If we do not see the funding gap filled through a legislative solution by June of this year, we will have to begin the arduous work of a budget process that involves both fare increases and service cuts,” Derwinski said.

In 2026, Metra, Pace and the CTA will hit the so-called “fiscal cliff,” a $770 million shortfall coming when federal COVID-19 aid runs out.

The Regional Transit Authority, which oversees the three agencies, estimates the shortfall equates to a 20% budget hole that would result in a 40% service reduction across the metro area.

That would mean a Metra line with 90 trains would be down to 54, RTA planners predicted. For Pace it could result in buses coming every hour instead of every 45 minutes, and 24-hour service could end on the CTA.

But “when you’re dealing with expense — it’s not linear,” Derwinski explained. “A train that operates more miles costs more to operate; a crew that’s out there more is more cost-effective than a crew that’s out there less.”

And on routes like the Heritage Corridor, with three morning trains from Joliet to Chicago and three afternoon trains back, “it makes no sense to eliminate 40% of Heritage Corridor service,” Derwinski noted.

A number of state lawmakers have asked that additional funding for the transit agencies be tied to governance reforms that include more efficiencies and improvements like a universal fare.

An RTA proposal would give the agency broader authority over Metra, Pace and the CTA in terms of fares, service quality and capital investment. In return, the RTA envisions cutting wait times by 50%, among other enhancements.

A rival plan backed by some legislators recommends merging the three entities into one super agency, the Metropolitan Mobility Authority. That could save millions of dollars in operating costs, supporters predict.

Derwinski said “we believe in an enhanced RTA, giving them more authority to do certain things and keeping the unique boards and unique operating windows intact.”

Metra will continue talking to lawmakers and stakeholders in the coming months, he added.

“The reason RTA was formed, the reason Metra was formed is because it’s essential to the region,” he said. “We’ve got to find the solutions in this state to make sure that this is sustained.”

https://www.dailyherald.com/20250122/transportation/metra-fare-hikes-40-service-reduction-looms-without-funding-fix/