Pushback for merging Metra, Pace, CTA into a single agency

Rescuing transit from a fiscal free fall could require higher taxes or fees and possibly kneading Metra, Pace and the CTA into one mega-agency, Chicago Metropolitan Agency for Planning officials said Wednesday.

The three organizations face a combined $730 million annual budget shortfall starting in 2026, when federal COVID-19 funding dries up. In 2022, state lawmakers required CMAP to report on the crisis and offer solutions.

“Be bold. Reimagine our transportation system. Focus on ensuring the system is financially viable. Make it stronger than it was before COVID-19. Consider equity, climate change and economic growth,” is how CMAP Executive Director Erin Aleman described the agency’s objectives.

But pushback was quick to come, from opponents of raising taxes to transit leaders who united in balking at a merger.

“The complications of running our transit systems should not be understated,” Chicago Transit Authority President Dorval Carter said.

“I have a very different customer base and regulatory base than does, say, Metra,” Carter added.

Likewise, Metra Executive Director Jim Derwinski warned of “unintended consequences” of commingling a railroad-based system with bus and subway operations.

CMAP offered multiple recommendations in the report that will be voted on in October, then sent to lawmakers for consideration.

Two budget options were proposed that would generate either $1 billion or $1.5 billion in new annual revenues.

To raise those funds, suggestions included fare increases tied to inflation, a tax on services in Illinois, boosting the Regional Transportation Authority sales tax, higher gas taxes, a parking tax in Chicago, increasing vehicle registration fees and using toll revenues for transit.

In return, riders could expect benefits such as more frequent service, faster buses, an integrated fare system, improved accessibility, and a safer, cleaner system, officials stressed.

“We understand how hard this is,” said state Sen. Ram Villivalam, Transportation Committee chairman. “We as the Illinois General Assembly will have to go to our taxpayers and residents to make a case for additional revenue.”

But “if you speak to legislators across the region ... they are willing to tackle the tough conversation of revenue. They know we need a reliable, safe, environmentally friendly, equitable transportation system.”