Illinois lawmakers push $1.5B public transit bill to avert fiscal cliff

Pritzker balks at $1.5B bill to save Chicago area transit system

Illinois state lawmakers unveiled a massive $1.5 billion funding package for the Chicago area’s transit system. Proponents argue it’s a once-in-a-lifetime chance to transform public transportation in the region, but it will come at a cost.

SPRINGFIELD, Ill. - Illinois state lawmakers unveiled a massive $1.5 billion funding package for the Chicago area’s transit system.

Proponents argue it’s a once-in-a-lifetime chance to transform public transportation in the region, but it will come at a cost.

What we know:

Legislation to avoid a fiscal cliff with the loss of pandemic-era federal funding has been debated for months, and finally, lawmakers appear to have come to an agreement.

Lawmakers dropped the bill late Tuesday night with planned hearings for Wednesday. The bill aims to rescue the Chicago Transit Authority, Pace and Metra from the massive loss in funding while averting any fare hikes and service cuts.

The bill is worth an estimated $1.5 billion a year and will be funded by:

• A 7% state amusement tax on big events like concerts and theater, which would be in addition to a county and city amusement tax already in place.
• A new nearly 5% tax on unrealized assets over $1 billion, hitting the wealthiest Illinois residents.
• And from revenue from suburban speed camera tickets.

Advocates argue the cost is worth it to have the nation’s best and most reliable transit service.

"The total must add up to at least $1.5 billion in new revenue each year for the Northern Illinois Transit Authority so that people, like my parishioner, can live and move in our state on reliable, safe, modern transit system that Illinois deserves," said Erin Coleman Branchaud, of the People’s Lobby.

Part of the plan is to have better coordination between CTA, Pace and Metra with a new interagency board which will be in charge of making sure each system runs seamlessly. The idea is that someone can take a Pace bus to the Metra station in Naperville just in time for their train’s arrival to go to downtown Chicago.

But to some lawmakers' surprise, Gov. JB Pritzker voiced opposition to some of the proposals in the bill.

"As it is, it's not going forward," Pritzker said. "There's got to be a lot of discussion between the House and the Senate in order to come up with a final bill, because it isn't going to look like what the House has put forward."

Pritzker added that the tax on unrealized assets on billionaires has "never been done before." The governor is worth about $3.7 billion, according to Forbes.

What's next:

Lawmakers hope for a vote on the bill on Wednesday or Thursday. 

It will require a three-fifths majority to pass during the current veto session, which has different rules than the regular spring session.

The Regional Transportation Authority revised its estimate of the budget gap starting next year to around $200 million after agencies made some spending cuts.

But lawmakers still want to go for the whole enchilada with their $1.5 billion bill to achieve generational change for the state’s public transit system.