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* So, can the governor really give the CTA and RTA an advance on their subsidy? Here’s the actual language in the state budget from the appropriation that the guv will accelerate…
Section 225. The sum of $37,318,100, or so much thereof as may be necessary, is appropriated from the General Revenue Fund to the Department of Transportation for making grants to the Regional Transportation Authority for the purpose of reimbursing the Service Boards for providing reduced fares for mass transportation services to students, handicapped persons, and the elderly to be allocated proportionately among the Service Boards based upon actual costs incurred by each Service Board for such reduced fares.
Once again, we’re in an iffy area here. The governor, who has two lawsuits against Speaker Madigan for allegedly violating the Illinois Constitution, appears to be at the very least skirting the Constitution by changing the General Assembly’s appropriation to fit his own purposes and handing out money without regard to a pretty clear instruction that the funds be based on “actual costs.” From the Constitution…
The General Assembly by law shall make appropriations for all expenditures of public funds by the State.
It will be up to Comptroller Dan Hynes to write the check. Hynes lives in Chicago and probably won’t want to wear the jacket for this, but, legally, he probably shouldn’t do it.
Meanwhile…
* The Sun-Times ran a front-page editorial today expressing its disgust over the transit mess. The paper made an important point about Mayor Daley, who’s traveling yet again in Europe when he should be here involved in a solution…
Mayor Daley seems strangely uninvolved on the issue. As the CTA counted down to doomsday cuts this week, he was in Paris riding a bike.
He needs to be taunted on this every day until he comes home, as far as I’m concerned.
* The super-rare front-page editorial continues…
Gov. Blagojevich offered a Band-aid fix Wednesday — $24 million that will postpone those cuts until November, as long as the RTA goes along. But he still refuses to support the most realistic plan to address chronic funding problems. […]
The [negotiated] bill has so far failed, largely because the governor has threatened to veto any sales tax increase. And he has refused to offer an alternative, other than to trot out his tired and rejected plan to close what he calls “corporate loopholes.”
* The Tribune’s editorial board also got into the act, claiming that Blagojevich “has been less than no help at all in the first real effort to get the region’s mass transit system back on track,” and got into some specifics…
The measure would overhaul the Regional Transportation Authority, giving it broad oversight of the CTA, Metra and Pace. It would provide a long-term funding source for mass transit, mostly from a six-county sales tax. It would give the suburbs more influence on the transit boards and adjust the funding distribution formula for the first time in 25 years. It also includes a plan to restructure the CTA’s retiree benefit plans, which are on the brink of collapse. That bargain, struck with the CTA’s unions, is contingent on new funding.
* Mark Brown was less than impressed, calling yesterday’ gubernatorial action, “a cute stunt all the way around,” which featured Blagojevich, “prancing in all smiles on his white horse to take credit for temporarily saving the CTA and its riders.” More…
The governor said he believes “such a resolution is not far off,” but offered no evidence to support that assertion and cut his news conference short when reporters tried to pin him down about what he might have in mind, which seemed prudent seeing as how many of his big ideas tend to be dead on arrival.
Exactly right.
* Rep. Hamos made a good point in the Tribune today…
“Today’s action by the governor takes pressure off the legislature, and we haven’t done so well operating without pressure this year,” said Rep. Julie Hamos (D-Evanston), chairman of the House Mass Transit Committee.
* Don’t expect any further action for quite a while. Check out this quote in the Sun-Times…
The Senate is scheduled to meet Monday. There had been indications a bailout vote could occur then, but Senate President Emil Jones (D-Chicago) appeared to back away from that after Wednesday’s developments.
“We’re weighing our options,” Jones spokeswoman Cindy Davidsmeyer said.
* There’s even some doubt about whether the RTA board, which is required to vote on the measure, will approve the dea…
“The proposal averts an immediate crisis, but may create an even greater problem in the coming months,” [RTA Chairman Jim Reilly] said in a statement. “Given the current political dynamic in Springfield, the RTA has to decide whether it is prudent to ‘hope’ legislative leaders and the governor will act to place the regional transit system on sound, permanent footing.”
Blagojevich’s former GOP gubernatorial opponent Judy Baar Topinka was more direct, saying the governor could expect “a flat-out no” from her and other RTA board members on Friday. “To not include [funding for] Pace and Metra or a capital plan, this is just a payday loan,” Topinka said.
* Despite indications by the governor yeserday that the RTA would also be given money, the Daily Herald ran a story with the headline, “Governor bails out CTA, but not Pace,” and reported…
Pace officials were left with the impression Wednesday that they were out of the deal, and the governor made no mention of the suburban bus agency during his news conference. […]
On Sunday, Pace para-transit riders in the collar counties are set to face a 50-cent fare hike, and local route users will fork over an extra 25 cents. About 20 fixed-routes services will be cut Oct. 1 and more than 30 feeder routes to Metra stations are set to get the ax Oct. 15.
* And the Tribune added…
Pace officials said they had heard nothing from either the governor’s office or from the RTA on how much, if any, of the emergency subsidy the bus agency would receive. Pace, they said, would continue with plans for its previously announced fare hikes and service reductions.
* More…
* Guy Tridgell: Transit doomsday is looming
* Cuts to CTA could be postponed with bailout
* CTA cuts would keep some students on the bus a lot longer
posted by Rich Miller
Thursday, Sep 13, 07 @ 7:16 am
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The money can be advanced with a proviso that there be a true-up at the end of the fiscal year based on actual reduced fare ridership.
Based on past years’ experience and this year’s ridership trends, the amount of reduced fare remimbursement can be calculated with a high degree of confidence. My guess is that the $24 million is consistent with those calculations.
Under these circumstances the Comptroller has a reasonable basis for writing the check with the true-up condition in place.
While everyone is taking whacks at the Governor’s opposition to SB 572, consider that there are good arguments against using a sales tax to fund transit. First, the sales tax is regressive. Second, unlike taxes (or tolls) directed at private auto use that encourage people to take the service–transit–that the tax/toll is funding, there is no direct connection between a sales tax and transportation.
See an overly wordy but useful analysis at: http://sicktransitchicago.blogspot.com/2007/08/finding-path-to-resolution.html
Comment by Anon-GZ Thursday, Sep 13, 07 @ 7:57 am
“…“We’re weighing our options,” Jones spokeswoman Cindy Davidsmeyer said…”
How long does it take to weigh options and whose thumb is on the scale?
And, BTW, Emil — what would those options be?
From this seat (at the back of the bus withe the noise and the fumes) it looks like the same old “throw money now and study reform at some uncertain date”, such as the 12th of never.
Comment by Truthful James Thursday, Sep 13, 07 @ 8:06 am
Anon-GZ
I read the Sick Transit piece, and it all sounded pretty good until I got to the part about “user fees”. If a portion of tolled highways is to be used to fund transit, and this is deemed a meritorious idea, I say we have tolls on the wrong highways. The current ISTHA system has very little direct competition with the region’s transit system, and is one of the few components of the area’s transportation system that works like it is supposed to. If the idea is to reduce congestion in an area that can reasonably be relieved by transit, we should focus our efforts on downtown parking and the first 15 miles of freeway between downtown and the outer city. And, if the idea of “no new taxes” is written in stone, then it seems some of these “user fees” should be carried by transit users as well, since they are the direct beneficiaries of a system that reduces their congestion and enables them to get to work, etc. As always, I am fully supportive of ways to reduce the user fee burden on the working poor; the CTA already has a program for reduced fares that could be expanded if the need is there.
Comment by Six Degrees of Separation Thursday, Sep 13, 07 @ 8:32 am
Blago is a very loose cannon.
Comment by He was Godfather to my kids Thursday, Sep 13, 07 @ 8:38 am
Apparently PACE must not read the material on this issue either. Of course it helps if you are included as either an direct addressee or at least indicated as a copy recipient in the communication from the Governor, when he writes to outline how his plan will work.
The RTA can not; and should not, approve a Band-Aid financing scheme like this in the first place; especially if it favors one agency over another, that each provide a similar or identical service, but cater to a different set of constituents.
I am sorry if I am too stupid, or too stubborn to see this any other way, but apparently the good people at PACE have perceied this the same way that I have; so I guess I at least I have company at the depth level of my state financed challenged IQ.
Comment by Equal Protection Thursday, Sep 13, 07 @ 9:08 am
Six Degrees–I agree that road pricing would have to be expanded into the sectors of this region–including but not limited to Chicago–where there is both high levels of traffic congestion and high levels of actual or potential transit use.
This might be through London-style cordon pricing or by turning express lanes on freeways into toll lanes with dynamic pricing that guarantees free traffic flow or by tolling various bridges (e.g., Chicago, DesPlaines, Fox river bridges).
The toll collection system (e.g., I-PASS) is in place. The revenue potential is high. A user fee on roads is akin to the user fee currently paid by transit customers.
Assume that there are 60 billion vehicle miles traveled in the region. What’s the toll per mile traveled necessary to generate a stable funding base for transit? A regional road pricing system designed to charge people one-tenth of one cent per mile traveled would raise $6 billion! And since a fair amount of people traveling through the region are from out of state, not all of this “burden” would be borne by residents of this area.
Comment by Anon-GZ Thursday, Sep 13, 07 @ 9:13 am
Oops, my math is off. I meant to say that one cent per mile traveled would raise $600 million, which is substantially more than what the RTA and the transit agencies are seeking in operating subsidies.
Comment by Anon-GZ Thursday, Sep 13, 07 @ 9:16 am
So, we put a party in power that has decided to have a civil war. Nice move. Consequentially, little is being done to keep Illinois moving and we are an embarrassment.
While this civil war is ongoing, every political fight takes on new meaning. Blagojevich isn’t governing, he is conniving in retaliation to his holy crusade’s defeat this summer. As a result, even issues that used to be resolved amiably are now fought tooth and nail.
While Blagojevich’s temper tantrums stagnates Illinois, we have discovered how much we have depended on state government for so much of our daily lives. We are partially to blame for allowing state government to assume so much power within Illinois. We are responsible for putting in place elected officials responsible for these duties, and we have been neglegent by selecting Mr. Blagojevich as governor - twice.
The CTA doesn’t need the kind of budget fakery we have been seeing on a statewide level. We should demand a real solution, not a pay-day loan courtesy of Governor Doolittle. Once again, we have needed gubernatorial leadership, and Blagojevich has fallen so far short of our needs, we have to wonder why he ever ran for office.
If a pay-day loan is the best Blagojevich can do as governor, he is a very poor governor indeed and should give us all a break and resign.
Comment by VanillaMan Thursday, Sep 13, 07 @ 9:20 am
Daley has done an excellent job of timing his overseas adventures with impending Chicago crises.
Will anything chip his coat of Teflon?
Comment by Independent Thursday, Sep 13, 07 @ 9:22 am
The governor’s new approach to working with the legislature through lawsuits against Speaker Madigan and the clerk of the house sets himself up for the next round which will be lawsuit by members of the General Assembly.
Look for a bipartisan group of GA members filing a suit challenging the authority of the governor to transfer money from muliple agencies (unrelated to health care) to fund his health care initiative without legislative appropriation.
The suit could also attempt to prohibit the controller from making any expenditure of money until a ruling is made with the respect of the constitutionality of the governor’s action.
Comment by Larry McKeon Thursday, Sep 13, 07 @ 9:25 am
Somewhere from a PoliSci Couse I took in college in the early 1950s the following stuck.
In our federal system the States are the fulcrum. Upon adoption of the U.S. Constitution the States granted to the feds certain duties and responsibilities and retained via the 10th Amendment all duties not enumerated within that Constitution.
The States then granted by individual statute certain duties and responsibilities to subordinate levels of government (Counties, municipal bodies, schools, WRDs down to the lowest Nosquito Abatement District and TB Sanitoria.
In Illinois the state gaave more than the usual through the Home Rule statutes. (Municipalities with greater than 25K people, Counties with more that 1MM) All duties not delegated in the State Constitution are reserved for the State.
No provision is made at the State level for insurrection by a branch, or bungling. In most states (Illinois not being one) the State Constitution may include more power to the people through articles or amendments permitting Initiative, Referendum and/or Recall.
So we are stuck with what we have until a Con-Con.
God rest us merry, gentlemen. You know the second line of that Carol.
Comment by Truthful James Thursday, Sep 13, 07 @ 9:55 am
Even though I think Daley is a good mayor, why does he seem to care less about this issue than the Olympics and gun control? The CTA crumbling apart - if that ever ocurred - could have serious long-term implications for Chicago and his precious projects and Olympic aspirations could go the way of the dodo bird.
Comment by Team Sleep Thursday, Sep 13, 07 @ 11:26 am
I think Mayor Daley has a good sense of what he is able to solve — or what his adbisors tell him he can solve and deploys his resources accordingly.
He does not have the money to throw at the problem so, face-wise he avoids any egg. I think also that the people support from his staff may be more weak than it has been in the past.
Comment by Truthful James Thursday, Sep 13, 07 @ 11:56 am
Truthful-
Slightly off topic, but it looks like Will County will be a home rule county by default in less than 10 years if current growth rates continue. And it’s not clear if DuPage ever will, since it’s getting tougher to afford a house there and new growth has slowed to a trickle.
Comment by Six Degrees of Separation Thursday, Sep 13, 07 @ 12:05 pm
SDS –
I always had thought that DuPage already qualified by population and by separately electing a County Board President, but has so far avoided passing the necessary declaratory statute.
The population requirement for a home rule County I had thought to be 500,000, but I can find no number under Article 7.
Then again, there is the opt out referendum capability which Rockford and Lombard have done. The ability to avoid the tax rate limits and tax levy limits got too scary for Lombard and Rockford politicos and voters.
Comment by Truthful James Thursday, Sep 13, 07 @ 1:21 pm
I think Daley DOES care about what is going on with the transit system and he has went on record about it several times. In fact, without the public transportation in Chicago, you could find a serious pinch on middle class citizens of Chicago, which could trigger major financial and economic woes in the Chicagoland area.
With Chicago being a huge market for Illinois, its imperative that the state does its part to ensure that workers are able to do what’s necessary despite this overtime fiasco.
Comment by HelpMeUnderstand Thursday, Sep 13, 07 @ 1:58 pm
“HelpMeUnderstand” talk is cheap. The mayor has to get more involved.
Comment by Rich Miller Thursday, Sep 13, 07 @ 2:10 pm
James, are you certain that a majority of states have either recall, initiative , or referendum?
Comment by steve schnorf Thursday, Sep 13, 07 @ 2:30 pm
Team Sleep is right on. If this were gun control or Olympic related there’s no way Daley would have left town before such a critical date. Daley has been largely indifferent toward the CTA. More lobbying from Daley starting several years ago with the first “doomsdate” could have helped produce a long-term solution instead of getting band-aids each year.
Comment by Independent Thursday, Sep 13, 07 @ 2:33 pm
Rich:
The AP is reporting that the Governor has sweetened his transit advance proposal. He is adding another $17 million for paratransit.
Comment by GA Watcher Thursday, Sep 13, 07 @ 2:39 pm
I say Mayor Daley is part the blame for CTA’s financial problems. For one, he was aware that the former CTA President Kreusi, had paddened his pension and the Mayor stood behind him and slapped him on the wrist. Frank Kruesi should have been fired.
I believe that Kreusi is a major blame for the state of the CTA. A lot of money has been earmarked and spent on unnecessary remodeling of CTA train stations, when the CTA, in the interest of saving the tax payors money, should have done cheaper and less expensive repairs.
It was also Kreusi who informed the public in 2005 that if the CTA recieved the money from the state that it needed to close its budget gap, then the CTA would not increase fairs. Yet, January 2006 came and CTA got its money from the state and what did it do anyway, raise the fares. There is more to be said about this issue but it goes into possible legal actions that could be filed in the future.
Mayor Daley is part the blame for the financial debacles that plague CTA and we the people should not pay for the mismanagement of CTA. On another note, Ron Huberman inherited the financial woes in CTA.
Comment by One McMad Thursday, Sep 13, 07 @ 2:44 pm
“Blagojevich is now offering to make the full $54-million, 2008 para-transit grant available to the Regional Transportation Authority. That’s on top of the $37-million advance he’d already offered to the RTA, with a total of $31 million slated for the Chicago Transit Authority.”
Is it now up to $37 + $54??
Comment by transit sweet Thursday, Sep 13, 07 @ 2:53 pm
Truthful-
My googling of the IL constitution and county home rule says the same thing. From Citizen Advocacy Center: “A county has home rule status if it has a chief executive officer elected at large and passes a home rule referendum.” Also, Cook County is the only county in Illinois that currently has home rule status. Passing a referendum giving counties extra taxing power is probably a non-starter in most counties, even though it would give them extra flexibility in addressing issues like transportation and infrastructure.
Hint: the governor recently vetoed a bill that would have given authority to a handful of suburban and exurban counties to raise a county gas tax by referendum to fund transportation projects. This would be a much easier proposition than a home rule referendum, which would give them the same authority and would not need the gov’s and GA’s blessing.
Comment by Six Degrees of Separation Thursday, Sep 13, 07 @ 2:57 pm
This is just the last straw of many. This state governnment is broken. Electing more-of-the-same won’t fix it. We need a constitutional convention of non-professional politicans to change the rules.
Comment by Anon III Thursday, Sep 13, 07 @ 3:02 pm
Steve –
24 have statewide initiative election provisions, the same number (but not the identical list of states have state wide referenda election procedures, and 19 have Recall election procedures for state officials. Virginia does recall trials rather than elections.
See the following:
http://www.ncsl.org/programs/legismgt/elect/initiat.htm
Comment by Truthful James Thursday, Sep 13, 07 @ 3:13 pm
James,
Thanks. My recollection from college history was that they were populist initiatives that became increasing popular, and then began to lose favor. Looks like a lot of states still have them.
Comment by steve schnorf Thursday, Sep 13, 07 @ 3:52 pm
Based upon his recent actions and words. I have complete confidnce in Dan Hynes’ ability to make the appropriate legal, ethical, and principled decision about the propriety of the Governor’s latest proposals.He may require a helping hand from Lisa Madigan’s office.
Personally, I think it would be a mistake to take the pressure off the Governor and legislature to get something done. Short-term implementationof the doomsday service cuts may be the best and only way to put pressure on Blago,Jones, and Cross to get a deal done.
Comment by Captain America Thursday, Sep 13, 07 @ 5:18 pm
Steve S. and Truthful-
Here’s a joke for you:
Q: What do the voters of Illinois and the governor’s future trial testimony have in common?
.
.
.
.
A: “I can’t recall.”
Comment by Six Degrees of Separation Thursday, Sep 13, 07 @ 5:45 pm
SDS-LOL, LOL
Comment by One_mcmad Thursday, Sep 13, 07 @ 6:02 pm
Mayor Daley is a disgrace to Chicago, and he proves it again and again. Nero fiddled while Rome burned; Daley pedals in Paris while our transit system faces a total collapse.
But why should we be shocked at this? It’s not like the Mayor has added even an exta nickel to the city’s annual contribution to the CTA during his years in office!
Comment by fedup dem Thursday, Sep 13, 07 @ 6:15 pm
As Mayor, Daley has (and has had) far more control over CTA than the public understands, and he sure doesn’t want to educate anybody right now.
We all know that he has used CTA as a country club for Machine types who get into a jam with the feds or the press - that’s old news. But
I’m hearing there are far bigger skeletons in that closet that he does NOT need to have see the light of day. So, off to Gay Paree, where no one asks too many questions, and he doesn’t speak the language anyway.
Comment by Anon Thursday, Sep 13, 07 @ 9:02 pm
Rich–
I’m not disputing the fact that the Mayor couldn’t help push this process forward quicker and more effectively.
But with the bid for the Olympics and some of the other ventures that the city is trying to expand and bring forth (let’s not forget the OUTRAGEOUS pay salaries for some new Cook County top executives– which bothers me so!), the Mayor is just not going to do that. Nor, would he be able to with the investment that he has made towards 2016.
And in my opinion, he’s being made the focus for what is ultimately being caused by the gentleman in the governor’s office. When the city set their budget, I’m sure they didn’t forsee the “Overtime from Hell” in front of them. Now we are asking municipalities and local governments to adjust their plans because of an initiative that everyone doesn’t support.
Whatever is behind this “healthcare initiative” must be seriously important, no? Is it the kids? Seniors?
Comment by HelpMeUnderstand Thursday, Sep 13, 07 @ 10:00 pm
Throw the tolls idea out the window. Congress approved the latest transportation program with a provision that said tolls could not be imposed on existing highways, only on added lanes or new toll roads, a la the I-355 extension.
Comment by Joe Schmoe Thursday, Sep 13, 07 @ 10:52 pm
Going back to Larry McKeon’s comment this morning… GA members suing the gov? Would some or all of them perhaps be JCAR members (as McKeon himself was)? That would be priceless.
Comment by Anonymous Thursday, Sep 13, 07 @ 10:56 pm