The Civic Federation, the Chicago Metropolitan Agency for Planning, the Illinois Economic Policy Institute and the Center for Tax and Budget Accountability recently released a report calling for the expansion of the sales tax to several services, claiming such a move could raise $2 billion for the state.
The state imposes an additional sales tax in the Regional Transit Authority’s jurisdiction. Last week’s study found that expanding those specific RTA sales taxes to services could generate an additional $315 million per year.
There’s been a little talk behind the scenes of slightly lowering the 6.25 percent state sales tax if services were also taxed, except possibly in the RTA zone, when a quarter of a percent might also go to transit.
Whatever happens, something important is being overlooked in the coverage so far.
As far back as September, Gov. JB Pritzker has said that local governments within the RTA’s coverage area would also have to step up on funding. “Of course, Springfield is going to be a very important part of that. We’re not the only funder or the only available partner in that, but certainly we’re trying to put together a plan that will make sense for the future,” Pritzker said on Sept. 4.
On February 4, Pritzker said, “When we look at the question of mass transit, we’ve got to consider everything that contributes to that, state government, county government, city government, as well as the fare box and all those things together are going to help solve the problem.”
Two weeks later, Pritzker again mentioned transit fares: “There will be adjustments to the fare box, probably,” Pritzker said. And on total costs, he said, “who’s covering how much of that is a negotiation that will take place.”
The CTA, for example, hasn’t increased fares since 2018, and that was the first increase in nine years. Adjusting for inflation, fares should be about $3 for an L train ride, instead of the $2.50 they are today.
On March 21st, Pritzker urged negotiators to “come to a conclusion” on transit reforms “soon,” and then, he said, “everybody’s got to step up on the funding.”
Pretty much everyone at the Statehouse has said that funding won’t happen without reform. But the transit leaders are still demanding lots more money without interference with their governance.
“It’s something that I think we all understand is necessary soon,” the governor repeated, emphasizing the word “soon.”
But the difficulty in finding a solution to the many problems at the transit agencies was highlighted in a committee hearing last week.
My associate Isabel Miller told subscribers last week that Rep. Marty Moylan (D-Des Plaines) produced documentation showing that Chicago-area mass transit system overtime payments totaled almost $800 million in a four-year period.
“From 2020 to 2024, Metra, CTA and PACE paid over $778 million in overtime to employees,” Transportation: Regulation, Roads and Bridges Committee Chair Moylan told committee members, according to a story written by Isabel.
But House Assistant Majority Leader Marcus Evans, the sponsor of the labor-backed transit reform bill, pushed back against his fellow Democrat. “We need to move on from the overtime,” according to Isabel’s reporting.
“That’s just a reflection of mismanagement. So quoting large overtime numbers, I think, is disingenuous,” Leader Evans (D-Chicago) said.
Rep. Moylan (D-Des Plaines) agreed that managers and supervisors must be held to account for the massive overtime expenditures, Isabel reported.
“We have to hire more people—whatever we have to do to alleviate this,” Moylan said. “It’s a big concern, and it’s going to be a big problem, a logistics nightmare for myself and others.”
After the hearing, Isabel reported, Rep. Moylan distributed a document to committee members outlining the highest overtime earners.
According to the document, a CTA Ironworker General Foreperson who earned $320,000 in 2024 worked 1,666.5 overtime hours. Without overtime, his base salary would’ve been $113,000. A Metra Mechanical Relief Foreman logged 2,005 overtime hours, earning $138,600 in overtime pay. A PACE Master Mechanic worked more than 620 overtime hours, adding $73,467 to his 2024 salary.
After the committee hearing, Isabel asked Leader Evans to elaborate. “We need more truth in the story of overtime,” he told her.
“Most workers in transit don’t accrue overtime. People call off a lot in transit in [inclement] weather, so some workers have to stay,” Evans said. “It’s not these evil workers that are greedy.”
Rep. Moylan told Isabel he’s not going to call a mass transit bill until there is some solution for overtime costs.
“Soon” is a relevant term.
- Larry Bowa Jr. - Monday, Mar 31, 25 @ 8:57 am:
“CTA Ironworker General Foreperson who earned $320,000 in 2024 worked 1,666.5 overtime hours”
I agree mismanagement is the larger problem. But also, you gotta be kidding me here. This guy did not average 72+ hours/week for an entire year. When I was in my early 20s I was able to work a couple weeks like that in a row before I started to break down physically. Nobody is consistently averaging 70+ hours of work anywhere in the state or local government. There is literally not one person working that many hours for a full year. Stop insulting people’s intelligence.
- City Zen - Monday, Mar 31, 25 @ 9:11 am:
==We need to move on from the overtime==
We may be through with the overtime, but the overtime ain’t through with us.
- RNUG - Monday, Mar 31, 25 @ 9:16 am:
The transit groups aren’t getting the message on the need for reform.
Any new money, ore en just the normal annual money, should be doled out in quarterly or less increments tied to performance goals … likereduced overtime or better on time service.
- Incandenza - Monday, Mar 31, 25 @ 9:21 am:
This list of revenue sources is great, but there is another source that I haven’t seem mentioned. Other states like PA have shifted money from their federal highway funds to transit. Gov Shapiro moved $153 million to Philly transit. IL is behind our peer states in how much we shift from the highway funds to mass transit. That should be considered.
https://www.wbez.org/springfield/2025/03/31/cta-mass-transit-fiscal-cliff-illinois-general-assembly-explainer#:~:text=Pennsylvania%20Gov.%20Josh%20Shapiro%20ordered,the%20Illinois%20Department%20of%20Transportation.
- Jack in Chatham - Monday, Mar 31, 25 @ 9:24 am:
If more revenue is necessary then we should consider providing more tobacco sales enforcement dollars. An estimated $153 million is lost due to black market smokes or one out of six packs. Raising alcohol user fees is overdue as these fees have not begun to keep up with income or inflation. Alcohol sales are fueling the rise in violent crime. Additionally the admission fee to adult entertainment clubs and casinos of $3 is kept by the establishment with only the first $25,000 going to fund State programs such as Sojourn homes. This entrance fee should be raised and all the dough go to the State. Increasing the liquor user fee from $1.71 for a fifth bottle to $15 would bring in big dollars. Increasing the admission fee from $3 to $15 and having all the money go to fund State programs would also bring in big dollars. I don’t share the values of the Civic Club. Sober adults deserve discounts on insurance premiums.
- Jerry - Monday, Mar 31, 25 @ 9:26 am:
Should the CTA and Pace have cut service, like METRA did, during the pandemic. Probably. But what is done is done.
Lets get over the overtime issue.
CTA, Pace, and Metra need to increase fares and put some skin in the game. How about a higher fare for Purple line trains that depart from Evanston and run express to Belmont? Higher fares during rush hour and bring back conductors during busy times? How about working on the pass structure for all 3 services? Looking at the CTA/Pace there should be more pass options between 1-day, 3-day, and weekly passes, for instance.
I do not agree with “reform” if it means combining all the agencies. Pace works differently than Metra and the CTA.
- Just Me 2 - Monday, Mar 31, 25 @ 9:46 am:
=== The transit groups aren’t getting the message on the need for reform. ===
Oh, the transit agencies get it, the problem is the people who appoint their boards of directors don’t want changes to their power over transit operations.
- Donnie Elgin - Monday, Mar 31, 25 @ 9:53 am:
Let’s hope they figure this out soon - and they have calculated the cost of operating the New Elgin to Rockford Metra line that is expected to open in 2027
- Captain Obvious - Monday, Mar 31, 25 @ 9:58 am:
Agree with Jack on revenue sources and really agree that disbursement of funds should be contingent on performance in both cost control and quality of service. Like it or not the state is running a business here and it should be managed accordingly. Time for JB to apply that sharp business acumen and leadership and fix this mess. The transit agencies and the legislature don’t seem able to get this done.
- Blue Dog - Monday, Mar 31, 25 @ 10:15 am:
Regrettably, this is why we have doge.
- Incandenza - Monday, Mar 31, 25 @ 10:19 am:
== performance in both cost control and quality of service. ==
Unfortunately, performance and quality of service are very dependent on a well-funded program. As infrastructure crumbles and frequency and reliability decline, ridership also declines, leading to a vicious downward trend of revenue and use. But you are right that the revenue should be targeted directly at improving quality performance which will help ridership.
It might be popular, but the red line extension is a poor use of capital dollars. It is extending the red line to a low-density area of the city while ’slow zones’ are spreading across several lines from lack of maintenance. It’s like building an add on to your house while the roof is leaking and there are hairline fractures in your foundation.
- Dupage - Monday, Mar 31, 25 @ 10:21 am:
No to diverting highway funds to the CTA. The state highways and bridges are in need of repairs/replacement in many areas of the state.
No to raising tollway tolls to bailout mass transit.
Tollway money should only be used to repair/replace and extend the tollways.
- Three Dimensional Checkers - Monday, Mar 31, 25 @ 10:39 am:
I use the monthly $75 pass for CTA and think it is a bit of a steal. But it is reoccurring and predictable revenue for the agency. I hope they don’t jack up that price too much because I think the people who make a choice to rely on the system deserve a little financial reward.
- froganon - Monday, Mar 31, 25 @ 10:40 am:
Yes to a slice of tollway money going to mass transit. Keeping and getting people into mass transit is a good strategy to reduce tollway congestion. No to congestion pricing, commuting is a grind for almost everyone, don’t make it more annoying by complicating it with congestion pricing. Yes to reminders that with a graduated income tax, many of the state’s funding issues would be greatly eased. Transit, infrastructure and public services cost tax dollars. If you don’t pay enough, you don’t get the services. Illinois relies too heavily on property taxes, raise the income tax, exempt the first $15,000 to $20,000 for everyone. Carried Interest should be taxes as income.
- JB13 - Monday, Mar 31, 25 @ 10:41 am:
The solution isn’t easy.
But no tax increases should be considered without a realistic examination and treatment of the reasons ridership on CTA, in particular, continues to struggle, at just 60% of 2019 levels.
I know most public agencies don’t believe they need to answer such questions. But why do so many people not want to ride CTA anymore?
- ChicagoBars - Monday, Mar 31, 25 @ 10:43 am:
“Unfortunately, performance and quality of service are very dependent on a well-funded program.”
A gentle reminder that the CTA and Metra were entirely and fully funded the last several years thanks to Federal Covid grants and saw operations on CTA at least degrade noticeably (and I’m being diplomatic). This whole canard from CTA leadership about “We just need money without reform, we got this” is just insulting to half the GA and everyone who actually rides the CTA at this point.
- Incandenza - Monday, Mar 31, 25 @ 10:49 am:
== The state highways and bridges are in need of repairs/replacement in many areas of the state. ==
Highways and bridges will be torn up even more if all those folks riding transit move to driving their cars. Transit funding is a way to make the roads clearer and solve traffic congestion.
- Politically_Illinois - Monday, Mar 31, 25 @ 10:54 am:
The workers themselves are not at fault for overtime but it is a sign of dire mismanagement and reinforces the need for new governance and management. It makes one cynical that some leaders in Springfield don’t make that connection, I think motivated reasoning is behind the call to “move on”
- Jerry - Monday, Mar 31, 25 @ 10:55 am:
Ridership is down due to an increase in telework.
Smoking on trains is a problem.
The security guards with dogs are of no use when somebody jumps the turnstile and they do nothing.
The Forest Park branch of the Blue Line (Kedzie to Forest Park) is one big slow zone. Which slows down service on the other end of the line.
Train operators and bus drivers need to take classes in customer service. Would bringing back conductors help with this?
In fact was it even a good idea to put transit in the middle of an expressway (which was “pioneered” in Chicago, as was the Skokie Swift).
Rhetorical questions and random ideas.
- dead horse beater - Monday, Mar 31, 25 @ 11:05 am:
not unrelatedly, western suburban denizen here whose kid takes the train down every day. This morning a train was stuck on the tracks and it was an unmitigated nightmare getting accurate information from Metra. the tweets didn’t sync with the platform message boards on which train was or wasn’t cancelled. several trains *stopped* on the middle tracks at the designated locations, tempting riders to cross over and board. It’s black and blue and bad all over in the transit world.
- Incandenza - Monday, Mar 31, 25 @ 11:08 am:
== Ridership is down due to an increase in telework. ==
This is the central issue to resolve by the transit agencies, and the answer lies in how to shift the system away from just a commuter system to a transport option for all kinds of trips, shopping, going to the gym, seeing friends or the doctor. A single fare, clearer and more direct transfers, and frequency are ways to leverage the existing routes into a system people could use outside of just commuting.
- Jerry - Monday, Mar 31, 25 @ 12:49 pm:
@incandenza: Good comment, thanks.
The issue with more frequency, specifically with Metra, is that those rail lines are owned by the railroads and includes their own freight traffic on the rail lines.
- Thomas Paine - Monday, Mar 31, 25 @ 1:18 pm:
The solution seems pretty straight forward.
Just copy and paste the Washington Metro.
The Feds are familiar with it and love it.
Service is clean and safe.
Fares are low.
Coordination of fares and transfers occurs among 11 regional mass transit districts.
DC has the third-highest mass transit ridership rate in the nation.
Instead of increasing fares, slap a fee on downtown parking garages.
- Incandenza - Monday, Mar 31, 25 @ 1:23 pm:
Very true Jerry! Same with Amtrak. I believe North Carolina, weirdly, is a great example for addressing this. The state has created a public/private entity that owns the tracks for their Amtrak and mediates between the freight and passenger. Might be a nice model to try and replicate.
- Thomas Paine - Monday, Mar 31, 25 @ 1:27 pm:
=== The CTA, for example, hasn’t increased fares since 2018, and that was the first increase in nine years. Adjusting for inflation, fares should be about $3 for an L train ride ===
increasing ticket prices when you are trying to increase ridership is usually a bad idea, from a marketing perspective.
I get that “everyone walks away unhappy” is how we like to make sausage in Springfield. That only ever benefits the people who, by all rights, should be taking the hit.
- City Zen - Monday, Mar 31, 25 @ 3:41 pm:
==slap a fee on downtown parking garages==
You mean another fee on top of the 23.25% parking tax rate that just increased a few months ago?
- Just Me 2 - Monday, Mar 31, 25 @ 6:02 pm:
Thomas Paine — the DC transit system is entirely different than Chicago. First, that system was built in the 1970s, and is much cheaper to maintain (and therefore operate). Second, Congress has a special appropriation for the capital city’s transit system that other systems don’t enjoy. Third, large parts of that system are underground, and therefore not subject to brutal winters that increase costs.