If the Illinois General Assembly does not act immediately to reform and refinance the region’s mass transit system, the Chicago area’s economic health will be jeopardized, according to an influential group of business leaders.
The state must give the Regional Transportation Authority the power to raise additional revenue, including increasing the sales tax and levying a gasoline tax of up to 5 percent per gallon, the business-backed civic group Chicago Metropolis 2020 said.
“This is a group of business people standing up and saying, ‘We’re willing to push for additional taxes, including a gas tax.’ This is very significant,” said George Ranney Jr., Chicago Metropolis’ president and CEO.
Legislators also should restructure the boards of the RTA, the CTA, Metra and Pace to better reflect city and suburban representation, the group said. Specifically, each of the six Chicago-area counties should have direct representation on the RTA board.
Chicago Metropolis outlined the recommendations in a letter and position paper it is sending Tuesday to Gov. Blagojevich and the General Assembly.
Although the need for such actions is compelling and clear, the group said, Blagojevich and the legislative leaders have failed so far to make mass transit a priority.
“Action is needed this legislative session to prevent further damage to the region’s economy and global competitiveness,” the group’s executive council said in the letter and position paper, which were obtained by the Tribune.
A coalition of community groups on Monday had harsher words, criticizing Blagojevich for failing to address the looming transportation crisis.
Members of the Concerned Commuters of Northeastern Illinois coalition — including the Center for Neighborhood Technology, Illinois Public Interest Research Group, Metro Seniors in Action and the Little Village Environmental Justice Organization — demanded that Blagojevich take a leadership role in obtaining new transit funding. The RTA’s current structure hasn’t been modified since 1983.
Many of the changes are contained in legislation that has been introduced by Rep. Julie Hamos (D-Evanston).
Chicago Metropolis’ plan proposes seven funding options, including an RTA-imposed gas tax of up to 5 percent.
The plan also proposes an increase the RTA sales tax to 1.25 percent from 1 percent in the CTA service area, and an increase in each of the collar counties from the current quarter percent to at least one-half percent.
But with gasoline prices well over $3 a gallon, Chicago Metropolis’ gas tax proposal “could not have come at a worse time,” said David Schulz, director of the Infrastructure Technology Institute at Northwestern University.
Spokesmen for Blagojevich did not returns calls for comment Monday. The governor’s office previously has said that the legislature must first deal with Blagojevich’s plan to fund health care and education with his controversial $7 billion gross-receipts tax on businesses.
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MILLIONS NEEDED
The RTA is asking the state to fill a current shortfall of $226 million and to provide $400 million annually for operations. In addition, $10 billion is needed over the next five years for capital improvements. Unless the legislature acts by July 1, the RTA said, the CTA, Metra and Pace will consider fare hikes and service cuts.
