An agreement that Pace would get its share of $84 million in 2008 state transit subsidies Gov. Rod Blagojevich has offered to release improved prospects for approval of the plan to avert service cuts and fare increases, officials said Thursday.
After a day of number crunching, skeptical Pace officials said they were satisfied that the suburban bus agency would get the money it needs to operate through the end of October.
Some members of the Regional Transportation Authority board, set to vote Friday on Blagojevich’s proposal, object to drawing on next year’s subsidy money with no assurance that the governor and lawmakers will agree on a long-term funding solution.
RTA Chairman Jim Reilly said he did not know what the outcome of the board’s vote would be but acknowledged that assuring Pace’ needs were met was “a plus.” The Chicago Transit Authority said Wednesday that it supported the plan.
“I think the vote will be close. There will be strong arguments on both sides, but I wouldn’t presume that the board will approve [the proposal],” Reilly said.
Others who spoke privately were more confident that the RTA directors would accept the stopgap money. And Mayor Richard Daley expressed gratitude Thursday for Blagojevich’s proposal and said he supports it, but called on the governor and legislative leaders to compromise on a long-term solution.
“I hope everyone sets aside egos,” he said of feuding lawmakers. “Just set everything aside and say, ‘Who do we represent?’ Take all the people who use public transportation on a daily basis. Their fares can’t go up. They can’t get service cuts. So who do we represent?”
The CTA is prepared to raise fares, lay off more than 600 employees and eliminate 39 bus routes Sunday. Pace threatened to increase fares for elderly and disabled paratransit riders, local routes, Metra feeders and vanpools.
Advancing the 2008 funds to the transit agencies will forestall the service cuts and fare increases at least until Nov. 4, which officials hope will give the General Assembly and Blagojevich more time to approve mass-transit legislation. State Senate President Emil Jones has scheduled action on transit funding for next week.
On Thursday, Blagojevich increased the amount of 2008 funds that the state would advance the transit agencies. His office also clarified the amount that Pace would receive — a point of much contention Wednesday. Pace officials complained that it appeared they were being left out of the funding plan.
Under the proposal, the CTA would receive $24 million 2008 dollars, and Blagojevich said he would expedite release of an additional $7 million already earmarked for the agency this year. An additional $6 million in 2008 dollars would be split between Pace and Metra, officials said.
Blagojevich also offered to make available immediately the full $54 million paratransit subsidy in the 2008 budget.
Pace and RTA officials worked out a deal Thursday to give the bus agency enough money to pay for paratransit service and forestall fare increases through October, said Rocky Donahue, Pace’s deputy executive director.
Pace hopes that the RTA board approves the plan, he said.
“We’re grateful for a one-month reprieve, but we still need a permanent funding solution,” Donahue said, adding that it was a “big risk” to take an advance on the 2008 subsidy without a permanent legislative solution.
Critics said the Blagojevich offer simply advances money to the cash-strapped transit agencies that they would have received next year. They equated it with using next month’s mortgage money to pay for this week’s groceries.
RTA director Fred Norris scoffed at the advance payments, saying, “Borrowing from the future doesn’t make sense.” The transit agencies have been doing this for the last four years by spending capital funds on operating needs, he said.
“I don’t think it’s sufficient, taking funds already earmarked in next year’s budget. It will only dig a deeper hole,” said Norris, former mayor of St. Charles who represents the collar counties on the RTA board.
Norris, however, welcomed the additional paratransit funds offered by Blagojevich. “[It’s] wonderful. I’m glad he’s thinking deeper,” he said.
The Blagojevich proposal will need the support of nine of the 12 RTA board members (one Chicago seat on the board is vacant).
Seven board members represent suburban Cook, DuPage and the four other collar counties, but only three Chicagoans are represented on the board, along with CTA Chairwoman Carole Brown.
Suburban Cook County RTA director William Coulson said he was skeptical about the Blagojevich offer but said he had an open mind.
Coulson said the RTA oversees all three service boards, and directors are accountable to residents of the entire six-county region. “That’s who I answer to,” Coulson said.
Coulson wondered whether the governor even had the authority to offer to advance the state funds and questioned whether the state comptroller could simply “write a check.”
“It’s not a gift horse, as the governor said yesterday,” Coulson said. “It isn’t as if there’s some big piggy bank.”
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rwronski@tribune.com
