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* My weekly syndicated newspaper column…
The Taxpayers’ Federation of Illinois and the Regional Transportation Authority agree that a change to Illinois’ sales tax law will net the RTA an additional $150 million this year and another $225 million next year. That money will drastically reduce the impact of the looming $770 million “fiscal cliff,” which begins in January.
The extra revenue was a result of the state expanding its sales tax to include more online purchases.
In an internal RTA document, the transit agency mulls spending $44 million of that additional money this year on Americans with Disabilities Act paratransit operations and appears to leave the door open to even more spending expansions.
Several months ago, the RTA claimed that its paratransit costs contributed $239 million to the looming $770 million deficity because the state only kicked in $10 million to the federally required program that provides heavily subsidized rides to people with disabilities who cannot use fixed-line transit. The RTA has been receiving a huge amount of federal dollars since the pandemic, but that money runs out at the end of this year.
The RTA believes spending the $44 million is justified because paratransit is supposed to receive a set portion of sales tax revenues.
“In 2025, the paratransit expenses are over-budget and it is the fiduciary responsibility of the RTA and the Service Boards to address that gap with available funding this year,” said RTA spokesperson Rob Nash.
However, the internal document also seemed to leave the door open a bit to using that new money for other purposes.
“A subsequent vote by the Board would be needed to direct those funds to ADA paratransit funding or other budget amendments via an appropriations ordinance.”
Asked about further spending, Nash said the sales tax expansion “is contributing to positive budget variance or operating reserves at each operating agency after covering their monthly operating expenses.”
Either way, some key legislators involved in the mass transit reform talks don’t want the RTA to spend that unexpected $150 million now, preferring the agency wait until final legislation is approved and when the money can be used to alleviate deficit costs.
“We need everyone at the table offering and working on solutions to avoid the fiscal cliff that threatens transit services people rely on, and increasing spending right now does not advance that goal,” said Rep. Eva-Dina Delgado, D-Chicago, one of two House Democratic transit negotiators.
“Just like Springfield has a duty to fix the bigger problem, the RTA has an obligation to treat this moment with discipline. It’s crisis cash, not extra spending money,” said the other House Democratic negotiator, Rep. Kam Buckner, D-Chicago.
One of the biggest obstacles to solving this transit problem is coming up with the money. The new sales tax revenue will help, but there’s still a long way to go.
And some major players are stepping up to complicate matters.
The Illinois Realtors Association has dumped an unprecedented $300,000 into a special campaign committee that is running an online “consumer awareness campaign” slamming some Democratic legislators ahead of the fall veto session.
The online ads are targeting five state senators and 21 House members, a spokesperson for the statewide group said. The Senate passed-bill was declared “dead on arrival” in the House by Speaker Emanuel “Chris” Welch, but House members are bearing the brunt of the attacks, likely because the bill is now in their chamber.
An ad whacking Sen. Laura Ellman, D-Naperville, is particularly harsh. Ellman voted for the Senate’s mass transit reform/funding bill at the end of the spring session. That bill included a suburban real estate transfer tax which was expected to raise millions to fund mass transit programs.
The online spot features a Photoshopped image of Mayor Brandon Johnson and Ellman standing in a commuter train as hundred-dollar bills float in the air around them.
“Sen. Ellman voted to raise your property transfer taxes to bail out Brandon Johnson’s failing CTA,” the ad tells readers. “Tell her to stop this crazy plan.”
The click-through link leads to this message: “In the final hours of voting in Springfield, Illinois Senators passed a 600% Property Transfer Tax on families, targeting ONLY the suburbs. The intended recipient of these new taxes? Mayor Brandon Johnson’s Chicago Transit Authority.”
“The proposed real estate transfer tax increase ignores the glaring reality of the state’s housing economy,” said Illinois Realtors CEO Jeff Baker via news release. “This would add thousands of dollars of closing costs to every residential and commercial transaction in the Chicagoland area, slowing our real estate economy even more.”
…Adding… Crain’s says the Realtors have upped the buy…
Illinois Realtors spent about a million dollars opposing the Chicago transfer tax increase. It’s now spending “a little more than $500,000″ opposing the potential statewide increase, he said. […]
“Our transportation networks keep the suburban economy humming, and our housing values will crater if train and bus services are cut or disappear altogether,” Sen. Laura Ellman, D-Naperville, told Crain’s in an emailed statement.
“We need to have serious, thoughtful conversations about the future of transportation in DuPage and Will counties, and throughout our region,” Ellman’s statement said. “It’s disappointing that this organization chose to go on the offensive instead of joining us at the table.”
* And, by the way, here’s the visual in the ad, which subscribers saw last week…
posted by Rich Miller
Monday, Jul 21, 25 @ 8:08 am
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Paratransit is the third rail of this whole funding mess. It used to be that, for most users, the ADA only required taking them to an accessible bus stop or train station. But that’s a really hard thing for these weak boards to enforce.
Comment by Jim Reilly’s ghost Monday, Jul 21, 25 @ 8:29 am
Have gotten the Ellman ad via text multiple times… she’s my Senator. I’ve reached out to her a couple times on other matters and never got a response. Needs a primary opponent in my opinion.
Comment by Lincoln Lad Monday, Jul 21, 25 @ 9:45 am
For too long the RTA and component boards have been tone deaf to taxpayers, instead placating their board members only. The problem has been there are too many board members, with many having marginal transit backgrounds. Time for a change to having just one overall regional agency and one board, with one purpose, rather than the current structure that has 4 boards with different goal and objectives.
Comment by Edge Monday, Jul 21, 25 @ 10:46 am
If para transit was included in the fiscal cliff calculation, and if spending “new” money brings down the fiscal cliff figure, then what’s the problem?
But if spending on para transit doesn’t address the biggest problem in the room, them what are their priorities?
Comment by Socially DIstant Watcher Monday, Jul 21, 25 @ 10:59 am
To the Illinois Realtors…why can’t Napervillians pay for their own train service instead of mooching off the RTA and the state?
Comment by Jerry Monday, Jul 21, 25 @ 11:32 am
Great response from Senator Ellman. She’s awesome.
Comment by Michael McLean Monday, Jul 21, 25 @ 12:05 pm
I find the Senator’s response to be tone deaf. But as a constituent, she lost my vote by not responding to me when I emailed her office multiple times. Listening to constituents is kind of important - ignoring them or acting against their interests is kind of a problem.
Comment by Lincoln Lad Monday, Jul 21, 25 @ 1:05 pm
The NE corner of the state has bloomed big over the past few decades almost entirely due to being next to Chicago, to being Chicagoland. Without Chicago, these counties are boondocks. So it’s in everyone’s interest to have the city and it’s amenities that even us little ole suburbanites use stay healthy. The only group really hurt by this, or really just terrified of being hurt by this, is the REALTORS. Every time I see ads like theirs I think, “huh–who paid for this and why are they squealing at me?”. This time it’s the realtors, worried about their own money, not about mine.
Comment by Vic Monday, Jul 21, 25 @ 1:11 pm
The millions intended to be raised through the real estate transfer taxes will be paid by buyers and sellers of real estate. It will come out of the proceeds at closing. We’re not stupid.
Comment by Lincoln Lad Monday, Jul 21, 25 @ 1:32 pm
Suburban GA members that vote for any substantial tax to bail the CTA will have issues to deal with which is probably why you won’t see a fix until last week of veto or even after the filing deadline.
Comment by NorthSideNoMore Monday, Jul 21, 25 @ 2:18 pm