Right now, the elephant in the room for Chicagoland public transportation planners and advocates is the looming regional transit fiscal cliff as federal COVID-19 funding subsidies run out. According to the Regional Transportation Authority, which oversees the CTA, Metra, and Pace, the three systems will face a $770 million total shortfall – almost 20 percent of the operating budget – in 2026. The RTA says that if the issue is not addressed by this spring, the result would be higher fares and reduced service, leading to less ridership, aka the dreaded "transit death spiral".
Streetsblog Chicago caught up with Illinois State Representative Kam Buckner (D-26th) for an update on what's going on in Springfield to tackle this issue. Last April, he introduced HB5823, the Metropolitan Mobility Authority Act, which would consolidate the four agencies into one. It hasn't advanced in the legislative process, and since there's now a new General Assembly, the bill will need to be filed again, either by Rep. Buckner or someone else. He isn't sure which it will be.
The following interview has been edited for clarity and brevity.
Cameron Bolton: What are you doing at the state level to address [the transit fiscal cliff]?
Kam Buckner: So, first of all, we must talk about these numbers very prudently. I've heard folks say $700 million, but the number is closer to a billion. And by the time we get to the bottom of it, it may be over a billion dollars, and we've got to be mindful of that. As we look at this issue that we find ourselves facing, the state legislature is trying to find solutions to this funding gap, which includes increasing state investment through dedicated revenue sources.
Longterm funding models suggest that we put forth a more sustainable longterm model that does not rely on temporary federal or state funds, but it still really derives revenue from longterm stable sources: trying to find ways to increase federal support. Federal funding is key in closing the gap, especially through infrastructure funding and targeted relief from mass transit systems. So, we want to be advocates in that space and see just what other things we can do to create the system that the region needs and deserves.
And so what we're doing here in the Legislature, both in the House and the Senate, is having very robust conversations about how we move it forward. I've said that there can be no new revenue without reforms. We have to talk about governing reforms, structural reform, and how we do good things to make sure that these systems work the way they're supposed to.
CB: Can you tell me anything about the reforms you'd like to see?
KB: There are no reforms on the table. The Metropolitan Mobility Act was filed last year to consolidate CTA, RTA, Pace, and Metra. That is one angle that can be pursued. And when I talk about consolidation, it can look a lot of ways. It can look like one central board that governs all the service agencies. It can look like better fare integration. It can look like better procurement, purchasing, and sourcing integration. I think that there is no one right answer today, but there are a few things that are out there floating in the atmosphere, which we should be having conversations about. But the most pivotal piece is that, once again, we can't have honest conversations about revenue until we talk about reform. The way that the system works today is not working.
CB: Is there a main thing you'd like to change going forward?
KB: There are a number of main things... these things don't operate in the silo, right? They're all interconnected. And so, once again, we talk about governance and the way the board is picked, and the way that funding works, and the way that purchasing works, and once again, fare integration and schedule integration, all of this stuff has to be, has to come together. And so there's not just one thing, it's all things at once.
CB: How do you feel about "flexing funding" from Illinois' Highway Trust Fund, which was recently increased via the federal Bipartisan Infrastructure Bill, to address the transit fiscal cliff, as was recently done in Pennsylvania?
KB: So, typically, flex funding is from, as you said, the Highway Trust Fund for transit projects that are managed through [the state department of transportation] in coordination with the Federal Transit Administration, and they can be used for a variety of transit projects: purchasing vehicles, infrastructure improvement, transit operations.
The truth is that it is a great opportunity for us in this transit space. When we look at where things are today and where we've come from when we look at government budget cuts and uncertainty regarding the continuation of federal funds, this is a useful tool, but we got to be smart about a few things. We got to plan and prioritize the right way to look at long-term sustainability. We got to make sure that we're coordinating with our federal partners. We got to find where the opportunities are to use some matching funds to leverage and just to make sure we're smart about the availability of the plans. So, it could be an essential resource, especially during fiscal and certain uncertainty. But my biggest thing is that we've got to create some long-term sustainability. It can't just be a band-aid approach.
CB: Some Illinois legislators have proposed an additional $1.5 billion in State funding for transit to help avoid the fiscal cliff. What's your position on this?
KB: Look, the fiscal cliff is unavoidable, right? What we can do is, once again, find more ways to invest in public transit. I want people to realize that, no matter what happens here, this is not a bailout. I want to make sure we stay away from that type of language. This is something that's essential for the state's economic health, and we have an obligation to do this and do it the right way. The biggest thing for me is not necessarily the money, just to make sure that we have the right mix of both revenue and reform to make the system work the way it's supposed to work.
CB: So why do you think the fiscal cliff is unavoidable?
KB: The truth of the matter is that when you look at the fact that federal funds have dried up, when you look at the fact that there is a funding gap right for Chicago area public transportation agencies when you look at the fact that we've had temporary funding increases, but they necessarily know what they need to do. When you look at rising operational costs, when you look at the decline in revenue, I mean, all these things point to the fact that this cliff is there, and we're not going to necessarily, quote, unquote, avoid it as if it's just going to go away. But we are required to take some steps to make sure that we don't fall over the cliff. Right? The cliff is there regardless. When I say it's unavoidable, I'm not saying that we have to fall over the cliff. I'm saying that the cliff will exist, and what we do as a response to that is what's important.
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