The Chicago City Council has approved a new budget that includes a new transit funding mechanism that could level the playing field for transit.
"[T]he Chicago City Council approved Mayor Rahm Emanuel’s 2018 budget, including a new fee on ride-hailing trips to fund the CTA," reports John Greenfield.
Mayor Emanuel pitched the idea of a ride-hailing tax to help pay for transit back in October. The idea gained the support of the Chicago Tribune editorial board shortly after. Greenfield also voices support for the idea:
The ride-hailing tax represents a sensible approach to leveling the playing field for buses and trains in the wake of recent studies that found services like Uber and Lyft are increasing congestion in cities and reducing transit ridership.
As for the details of the new tax, Greenfield has it covered:
The new tax will add a 15-cent surcharge to the existing city ride-hailing fee of 52 cents per trip, 67 cents total, next year. The surcharge, which will affect Lyft, Uber, and smaller competitors, will be increased to 20 cents, to 72 cents total, in 2019. The city projects this fee will raised $16 million in 2018, which the CTA plans to use on infrastructure improvements, with $21 million expected in 2019.
The article includes more context for the decision and other details of the city's approved budget.
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