* Click here to read the new transit reform and funding proposal. The Senate sponsor, Ram Villivalam (D-Chicago) talked to reporters shortly before the language surfaced…

rich-miller · S Spring St 8

Summary of Villivalam’s remarks about funding…

* $1.5 billion in revenues and efficiencies
* $50 million fare increases
* $113 million in efficiencies
* Package/delivery tax, which they’re calling an “environmental impact fee” [groceries, medications will be exempt]
* Rideshare tax

…Adding… Regarding the delivery tax…

IRMA would like to clarify a key point regarding Amendment 3 to HB3438:

The amendment does not fully exempt groceries or medicine from the $1.50 delivery tax.

Under the Amendment (page 17), retail delivery is defined as “sale at retail of tangible personal property by a retailer for delivery by a motor vehicle owned or operated by the retailer or any other person to the purchaser to a location in this State, which includes at least one item of tangible personal property that is subject to the tax imposed under the Retailers’ Occupation Tax Act.”

The key phrase is “at least one item of tangible personal property,” as the majority of online orders (70 percent) contain a mix of groceries and personal items, or a mix of medicine and personal items. For example, if a consumer places a delivery order for groceries and adds just one personal item, such as a cleaning product, the entire delivery would be subject to the $1.50 tax. The same would apply if someone orders medicine but adds a package of diapers – the $1.50 tax would apply.

There’s lots more in the bill than what he talked about.

* Transcript…

REPORTER: So how much revenue does this plan generate?

VILLIVALAM: As you know, in the northeastern Illinois region, there’s a fiscal cliff of about $771 million. The CMAP, the Clean Jobs Coalition, the United We Move organized labor coalition, the Civic Federation, the Civic Committee, of the Commercial Club of Chicago have all stated very clearly that if we want that world class system, a system that keeps people safe, makes to be different point A to point B. That number and one that’s for the next three decades, not just for next year. That number is a $1.5 billion investment.

We’re looking at a package that raises not just that number [for] the Northeast Illinois region, but really it raises a significant amount of funding for downstate community as well. And so it is a package that has been described [by] a business leader as a shared sacrifice. There’s efficiencies. There’s existing revenue streams, like the Road Fund interest that’s being used for transit. There is, as I mentioned, an environmental impact fee based off of the model that Colorado and Minnesota have done to fund public transit. [Package and delivery tax]

Obviously, there’s a rideshare fee. Our rideshare companies provide a service to our communities. And we believe, though, that public transit is important, and by the way, they’re complimentary as well. PACE is a perfect example where they contract with Rideshare companies for people with disabilities.

And so there’s other items in the package. But again, business groups, labor groups, environmental groups, all have agreed that we need that transformational investment to see the world class public transit system that we’ve set out to do as part of this three year mission.

REPORTER: Senator, did the operational issues get in, get resolved? You know, there was talk that a lot of the money in the previous amendment, so there wasn’t enough money that would cover operational costs, and that, like the majority was for non-operational costs. [Click here for background.] How did this amendment that’s coming up improve that at all?

VILLIVALAM: So with this amendment, we’re able to accomplish the transformational investment that I believe the northeastern Illinois region needs to have a system for the next three decades, and not just for next year. And so yes, it is as a shared sacrifice, the RTA put forward $113 million in efficiencies, $50 million of that was fare increases. I’ve been clear from the beginning with them and the public, fare increases are not in efficiency. We put together using the model that’s been employed in Colorado and Minnesota, the environmental impact fee as a funding mechanism. Obviously there’s a ride share fee as well. We’re trying to make sure that it is a shared sacrifice and that it gets us to the number right that we need to see to get that transformational investment. […]

REPORTER: There’s already talk on that environmental impact fee having come back to address some of the issues. Exemptions for small business, for pharmaceuticals, for groceries, is it responsible to pass something now?

VILLIVALAM: Well, first, let me be clear, the groceries and medication. Groceries are already exempted. Medications are exempted through the language [garbled, but sounds like it’s coming]. I believe that we have a robust package of reforms. Let’s take a moment to talk about that. We’re talking about a four decade plus system with four different agencies, 21 appointing authorities, 47 different appointments. And as has been said by others, that meant everyone is accountable and nobody’s accountable. That was not acceptable. We’ve said that from the beginning, no funding without reform. And we also said we need to fully fund public transport. So what we’ve done is ensured that there is a new board, eliminating the RTA creating NITA . And that board will have representation in every region in northeastern […]

VILLIVALAM: There will be overlapping members to ensure that there’s that integrated mindset. The reality of the situation is CTA not just serves the city of Chicago. They serve suburbs of Cook County. Metra has a third of their spaces in the city of Chicago, a third in suburban cook and a third in the [collars]. PACE does 100% of paratransit for the entire region. We are one region in one state and that is the reform that we need to ensure that we have a system that our residents, again, people that work, the 1.5 million people that rely on public transport to get to their job, their school, their doctor, they cannot afford a 40% cut to service. We have 17,000 workers that work in public transit. If we don’t act today, 3000 of them will receive laid off notices into the summer and over the fall. That’s not acceptable. Working class families know that this is a responsible package of reforms and funding, and I think that’s why there’s broadbased support. And I look forward to getting done today. […]

VILLIVALAM: I would say the funding that has been put into the amendment received significant input from downstate transit agencies will provide them with additional funding, more than they initially requested. We know that it’s important to have a fully functioning, fully funded public transit system across our state, and not just because there’s community to community transit. But I’ve been hearing over and over from my colleagues about the importance of connectivity to the Chicago metropolitan region, from the Quad Cities, from Peoria, from Champaign. That is why we were able to secure additional funding for downstate transit agencies. And we also need to specify how that would help with the connectivity across the state. Thank you.

Please pardon all transcription errors.

A top union official said this afternoon that organized labor is “full speed ahead” on the plan.

…Adding… More revenue…

Other "fee" increases included:

* Provides that, beginning on January 1, 2026, a fee is imposed on the privilege of engaging in business as an electric vehicle power provider in this State.

— Bishop On Air (@BishopOnAir) May 31, 2025

…Adding… Two letters sent to legislators against the proposed delivery tax. Faith leaders, Latino leaders.

…Adding… We’ve talked about this before, but here is some of the real estate transfer tax language…

The Authority shall impose a real estate transfer tax at a rate of up to $1.50 for each $500 of value or fraction thereof, which may be on the buyer or seller of real estate, or jointly and severally on both the buyer and the seller of real estate, for the sole purpose of providing financial assistance to the Authority as set forth in this Section.

(b) The real estate transfer tax under subsection (a) shall apply to real estate transactions that occur in Cook County outside of the City of Chicago, and within the Counties of DuPage, Kane, Lake, McHenry and Will. […]

(e) The Authority shall allocate amounts received from Cook County under this Section as follows:

(1) 50% shall go to the Chicago Transit Authority to cover pension obligations, and any excess shall be used to fund transit operations; and
(2) 50% shall go to fund transit operations.

(f) The Authority shall allocate all amounts received from the Counties of DuPage, Kane, Lake, McHenry and Will under this Section to the fund transit operations.