Regional Transportation Authority (Illinois)

[
Logo]

The Regional Transportation Authority (RTA) is the financial and oversight body for the three transit agencies in northeastern Illinois--the Chicago Transit Authority, Metra, and Pace--which are called Service Boards in the RTA Act. [70 ILCS 3615/1.03. The RTA Act may be found at the [http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ChapAct=70%26nbsp%3BILCS%26nbsp%3B3615%2F&DocName=&ActName=Regional+Transportation+Authority+Act%2E&ChapterName=SPECIAL+DISTRICTS&ActID=984&ChapterID=15&SeqStart=&SeqEnd=&Print=True Illinois General Assembly site] .] RTA serves Cook, DuPage, Kane, Lake, McHenry and Will counties.

The RTA Board consists of 16 directors, with 5 appointed by the Mayor of Chicago, 4 by the members of the Cook County Board elected outside of Chicago, one by the Cook County Board President, and one each by the County Board Chairman of the five collar counties. The Chairman of the RTA Board is the 16th member, and is appointed with the concurrence of 11 of the other RTA Board members, including at least 2 each from Chicago, suburban Cook County, and the collar counties, respectively. [70 ILCS 3615/3.01, effective April 1, 2008. See also http://www.rtachicago.com/aboutrta/boarddirectors.asp.] The chief executive officer is the executive director, who is appointed by the Chairman with the concurrence of 11 of the other directors. [70 ILCS 3615/2.14.]

The RTA system provides nearly 2 million rides per day. The RTA provides several services to the public, including the RTA Travel Information line at 836-7000 from all Chicago area area codes, an automated [http://tripsweb.rtachicago.com/ Trip Planner] , and "try transit" advertising.

The RTA has the authority to enter into agreements to provide service between points within the metropolitan region and outside of its territory, including into Indiana and Wisconsin. [70 ILCS 3615/2.07.]

History

1974 Origin

RTA was created after a referendum in 1974. In 1973, CTA had instituted its first major service cuts, [Bill Vandervoort, [http://hometown.aol.com/ctapacefan/rtectad.html Significant Dates in CTA Route History] .
A paper by Ian Savage of the Department of Economics and the Transportation Center, Northwestern University, [http://faculty-web.at.northwestern.edu/economics/savage/426-manuscript.pdf "Management objectives and the causes of mass transit deficits" (November, 2002)] , p. 15, outlines some of the reasons for the CTA's loss of profitability during this period.] and several suburban bus companies, including Evanston Bus Company and Glenview Bus Company had ceased operations, forcing Evanston to make arrangements with CTA and Wilmette to start a municipal service. The Rock Island and Milwaukee Road were already facing financial distress, which would lead to their eventual bankruptcy, and the Illinois Central was petitioning the Interstate Commerce Commission to increase commuter fares, on the basis that the cost of operating its commuter train system was a burden on interstate commerce. While several suburbs had organized Mass Transit Districts to purchase equipment for the carriers with federal financial assistance, the Rock Island was still operating old equipment that it could not replace. In an attempt to deal with these problems in the six-county area, the RTA was established, with some taxing powers, to provide financial support through grants to the CTA and suburban mass transit districts, and purchase of service agreements with the private bus and rail operators. [See also, Krambles and Peterson, "CTA at 45: A History of the First 45 Years of the Chicago Transit Authority" (1993), pp. 36 to 38. ISBN 0-9637965-4-2.]

1983 Reorganization

In 1983, after a financial crisis, [Savage, pp. 16-17, attributes the problem to the unconstrained demand for subsidies, and the RTA's loss of financial viability due to unreliabletaxing authority.
Krambles, p. 38, also notes unspecified political problems; [http://chicago-l.org/history/CTA3.html Chicago-l.org] describes some of them.
The extent of the crisis is partially described in two court cases reflecting the RTA's inability to meet obligations to suburban carriers: "Regional Transportation Authority v. Burlington Northern Inc.," 100 Ill.App.3d 779, 426 N.E.2d 1143, 55 Ill.Dec. 818 (1st Dist., 1981) and "Regional Transportation Authority v. Illinois Commerce Commission," 118 Ill.App.3d 685, 455 N.E.2d 172, 74 Ill.Dec. 142 (1st Dist., 1983).
Some contemporaneous reports are also contained in the [http://topics.nytimes.com/top/reference/timestopics/subjects/t/transit_systems/index.html?s=oldest&query=CHICAGO%20(ILL)&field=geo&match=exact "New York Times" transit system news topics] .] and the RTA taking over several private bus companies and the Rock Island and Milwaukee Road lines, the RTA Act was amended to create the Suburban Bus Division, now known as Pace, [70 ILCS 3615/3A.01.] and the Commuter Rail Division, now known as Metra. [70 ILCS 3615/3B.01.] RTA's role then changed, so that it is now responsible for reviewing the operating and capital plans and expenditures of the Service Boards, [70 ILCS 3615/2.01(b).] developing an annual budget and program [70 ILCS 3615/4.01(a).] as well as a five-year plan, [70 ILCS 3615/2.01(c).] and distributing sales tax receipts to the Service Boards, in accordance with a statutory formula. [The 1983-2007 formula was contained in 70 ILCS 3615/4.01(d).] However, RTA no longer provides service directly, as the Service Boards have the authority to determine the level, nature, and kind of public transportation to be provided, [70 ILCS 3615/2.01(a).] and to establish fares. [70 ILCS 3615/2.04.] Originally, RTA entered into purchase of service agreements with carriers, but the 1983 amendment gives the Service Boards the power to enter into those agreements with transportation agencies. [70 ILCS 3615/2.02.]

The 1983 legislation also imposed the requirements that the level of fares must be sufficient, in the aggregate, to equal 50 percent of the cost of providing transportation, [70 ILCS 3615/4.01(b)(i), subject to some exceptions for costs of security and the like.] and that the RTA Board inform each Service Board, as part of the budget process, of its required recovery ratio for the next fiscal year. [70 ILCS 3615/4.11(a).
Savage, p. 17, attributes this condition to the need to prevent the continuation of the trend of the 1970s.]

2004-2007 Funding Debate and 2008 Legislation

Background

In 2004, the CTA, projecting a $55 million funding shortfall in its 2005 budget, called for a "long term funding solution," involving a change to the sales tax distribution formula in the RTA Act. [See [http://keepchicagolandmoving.com/ keepchicagolandmoving.com, a CTA web site] .] In response, the Illinois General Assembly appropriated $54 million to cover the cost of CTA's paratransit service for 2005. [ [http://www.juliehamos.org/transit/news/07-05-05.asp Announcement at juliehamos.org] .] An amendment to the RTA Act made the RTA responsible for the funding, financial review and oversight of all ADA paratransit services, effective July 1, 2005, and transferred responsibility for operating or providing for the operation of paratransit service to Pace starting July 1, 2006, [70 ILCS 3615/2.30, as added by [http://www.ilga.gov/legislation/94/HB/09400HB1663enr.htm HB1663, 94th General Assembly] .
70 ILCS 3615/4.01(b)(ii) establishes a recovery ratio for paratransit service.] thereby relieving the CTA of that responsibility. The General Assembly also directed the Illinois Auditor General to audit the RTA and the Service Boards, as part of its review of the funding issue. [ [http://www.ilga.gov/legislation/94/HR/09400HR0479.htm HR0479, 94th General Assembly] for the audit of CTA; [http://www.ilga.gov/legislation/94/HR/09400HR0650.htm HR0650, 94th General Assembly] for RTA, Metra, and Pace.] The Auditor General's preliminary report, while agreeing that public funding was insufficient to support the level of transit services, said that the legislature must address other issues, including underfunded pensions, high salaries, absenteeism, and the lack of strong, centralized planning, resulting in several of the service boards competing for customers in the same areas, the Auditor General calling for "an end to the transit agencies fighting each other for customers, routes and federal funding for pet projects that may not fit into an overall regional transit plan." [cite news|url=http://www.chicagotribune.com/news/local/chi-0702230088feb23,1,1331120.story?coll=chi-news-hed |title=Audit:Overhaul the RTA|publisher=Chicago Tribune|date=February 23, 2007]

The RTA approved 2007 Service Board budgets premised on the assumption that "a new funding source would be identified in 2007 to meet the funding requirements of [the] budget." [cite web|url=http://www.transitchicago.com/downloads/budget/2007sum.pdf|title=President's 2007 Budget Recommendations|author=CTA Similarly the Pace 2007 Suburban Service Budget stated that its budget was balanced using "new transit funds anticipated to be realized through the Region’s Moving Beyond Congestion initiative." The Metra Budget stated: "We have been advised by the Regional Transportation Authority (RTA) to prepare a 2007 budget that anticipates additional operations funding from the state. Although such funding is essential, we have no guarantee that it will be forthcoming." cite web|url=http://metrarail.com/Budget/2007BudgetBook.pdf|title=2007 Budget Book|author=Metra] Nonetheless, the CTA budget recognized, "Without this new funding source, CTA will be forced to cut service." [cite web|url=http://www.transitchicago.com/downloads/budget/2007sum.pdf|title=President's 2007 Budget Recommendations|author=CTA] With no legislative action by August, 2007, CTA and Pace announced proposals for service cuts, popularly known as "Doomsday Plans," to be implemented September 16. [cite news|url=http://cbs2chicago.com/topstories/CTA.Chicago.Transit.2.339552.html
title=Time Running Out For CTA Bailout Plan|publisher=CBS 2 Chicago|date=Sept. 1, 2007
cite press release|url=http://www.transitchicago.com/news/ctaandpress.wu?action=displayarticledetail&articleid=103620|title=September 16 Start Date for CTA Service Reductions and Higher Fares|publisher=CTA|date=Sept. 9, 2007] The September plans were postponed when the Governor proposed advancing 2008 state subsidies. [cite news|url=http://cbs2chicago.com/topstories/CTA.Ron.Huberman.2.339796.html|title=Source: Governor Will Help CTA Dodge Doomsday|publisher=CBS 2 Chicago|date=Sept. 11, 2007 cite press release|url=http://www.transitchicago.com/news/ctaandpress.wu?action=displayarticledetail&articleid=109446|title=CTA Statement on Postponing Service Reductions and Fare Increases|publisher=CTA|date=Sept. 14, 2007] A new Doomsday date was set for November 4, but that was avoided when the Governor engineered a transfer of capital funds. [cite press release|date=Nov. 2, 2007|title=CTA Postpones Service Cuts, Fare Increases and Employee Layoffs Scheduled for November 4 |url=http://www.transitchicago.com/news/ctaandpress.wu?action=displayarticledetail&articleid=102413
publisher=CTA] Again, the legislature having failed to pass a transit bill, the three service boards proposed 2008 budgets that assumed no new funding and postulated service cuts by CTA and Pace, and the deferral of capital projects by Metra, as well as fare increases by all three agencies. [cite web|url=http://www.transitchicago.com/downloads/budget/2008sum.pdf|title=President's 2008 Budget Recommendations|author=CTA
cite web|url=http://www.pacebus.com/pdf/2008_Budget/2008_budget.pdf|title=Pace 2008 Final Budget Documents|author=Pace cite web|url=http://metrarail.com/Budget/2008_PR_BudgetBook.pdf|title=Preliminary 2008 Metra Program and Budget|author=Metra]

The barriers to 2007 passage of a bill were the requirement that a 3/5ths supermajority of the legislators was needed to pass a bill after May 31 to be immediately effective, [ [http://ilga.gov/commission/lrb/con4.htm Illinois Constitution, Article 4 Section 10] .] the Governor had threatened to veto a bill that included a sales tax increase, [cite news|url=http://abclocal.go.com/wls/story?section=news/politics&id=5856332|title=Lawmakers think transit bail-out might not come|publisher=ABC 7 News|date=Dec. 26, 2007] and many legislators tied a transit bill to a capital plan and a casino bill to fund that capital plan. [cite news|url=http://abclocal.go.com/wls/story?section=news/local&id=5827601|title=Madigan releases gaming proposal|publisher=ABC 7 News|date=Dec. 11, 2007] However, with a new Doomsday deadline of January 20, 2008 approaching, the Governor called on the legislature to pass some bill, and he would "improve it," [cite news|url=http://abclocal.go.com/wls/story?section=news/local&id=5875772|title=Gov again urges lawmakers to pass transit plan|publisher=ABC 7 News|date=Jan. 7, 2008] presumably using the amendatory veto. [The amendatory veto is authorized by [http://ilga.gov/commission/lrb/con4.htm Illinois Constitution Article 4 Section 9] .] The Legislature passed HB656 on January 10,cite web|url=http://ilga.gov/legislation/billstatus.asp?DocNum=656&GAID=9&GA=95&DocTypeID=HB&LegID=27782&SessionID=51
title=Bill Status of HB0656, 95th General Assembly|publisher=Illinois General Assembly|accessdate=2008-01-18] to which the Governor affixed an amendatory veto allowing senior citizens to ride all transit systems in the state for free. [cite web|url=http://ilga.gov/legislation/fulltext.asp?DocName=09500HB0656gms&GA=95&SessionId=51&DocTypeId=HB&DocNum=0656&GAID=9|title=Governor Amendatory Veto Message|publisher=Illinois General Assembly|accessdate=2008-01-18] Although various media reports expressed concern that the legislation could not receive the votes to sustain it after it was returned with the amendment,cite news|url=http://abclocal.go.com/wls/story?section=news/local&id=5888841|title=Illinois governor defends transit amendment|publisher=ABC 7 News|date=Jan. 14, 2008] the amendatory veto was accepted and the legislation passed on January 17, 2008.

Legislative response

The highlights of the 2008 amendments to the RTA Act include:
* The RTA sales tax was increased to 1.25% in Cook County, and 0.75% in the collar counties (from 1% and 0.25%, respectively), but one-third of the sales tax collected in the collar counties (i.e. 0.25%) is distributed directly to the counties [70 ILCS 3615/4.03.] and the county boards may use that money for transportation or public safety purposes. [70 ILCS 3615/4.03.3.]
* A new distribution of revenues is prescribed, essentially leaving the distribution of the sales taxes collected at the old rates as is (by references to "85% of 80% of the receipts from those taxes collected within the City of Chicago" and the like) and then, after certain funds described below are set aside, the remainder is allocated 48% to CTA, 39% to Metra and 13% to Pace. [70 ILCS 3615/4.03.3.]
* The Act requires that the RTA establish an Innovation, Coordination, and Enhancement Fund, [70 ILCS 3615/2.01c.] an ADA Paratransit Fund, [70 ILCS 3615/2.01d.] and a Suburban Community Mobility Fund. [70 ILCS 3615/2.01e.]
* The Act calls for the implementation of an Interstate 55 Bus Rapid Transit project and allocates money for programs to enhance access to job markets for residents in south suburban Cook County. [70 ILCS 3615/2.09.]
* Upon the vote of 9 Directors of the RTA, the Executive Director may intervene in a dispute among service boards or transportation agencies. [70 ILCS 3615/2.12b.]
* On the vote of 12 Directors, the RTA may take over an alternatives analysis and preliminary environmental assessment of a project where multiple Service Boards or transportation agencies are potential service providers. [70 ILCS 3615/2.01a.]
* The RTA must establish Disadvantaged Business Enterprise Contracting and Equal Employment Opportunity Programs. [70 ILCS 3615/2.31.]
* The RTA [70 ILCS 3615/3.01.] and Metra [70 ILCS 3615/3B.02.] boards were reapportioned, effective April 1, 2008, with the most significant changes being that the chair of the CTA may no longer be on the RTA board, and the President of the Cook County Board was given an appointment to the RTA and Metra boards, respectively.In addition, the legislation amended various other laws to deal with underfunding of the CTA Retirement Plan, [e.g., 40 ILCS 5/22-101.] and authorized the Chicago City Council to raise the real estate transfer tax for the sole benefit of the CTA, [65 ILCS 5/8-3-19.] which it did. [cite news|url=http://cbs2chicago.com/politics/realty.transfer.tax.2.648317.html|title=Drama Between Daley, Aldermen Over Tax Plan|publisher=CBS 2 Chicago|date=Feb. 7, 2008]

References

External links

* http://www.rtachicago.com/
* http://movingbeyondcongestion.org/ RTA site seeking support for its strategic plan.
* http://www.juliehamos.org/transit/ Site of Rep. Julie Hamos, who chairs the Illinois House Committee on Mass Transit.
* Illinois Auditor General: Mass Transit Agencies of Northeastern Illinois: RTA, CTA, Metra, and Pace – Performance Audit:
** [http://www.auditor.illinois.gov/Audit-Reports/Performance-Special-Multi/Performance-Audits/07-Mass-Transit-NE-IL-Perf-Exec-Summary.pdf Executive Summary]
** [http://www.auditor.illinois.gov/Audit-Reports/Performance-Special-Multi/Performance-Audits/07-Mass-Transit-NE-IL-Perf-Digest.pdf Summary Report Digest]
** [http://www.auditor.illinois.gov/Audit-Reports/Performance-Special-Multi/Performance-Audits/07-Mass-Transit-NE-IL-Perf-Main-Report.pdf Main Report]