Chicago Transit Cuts Averted By Tax Raise

After more than a year with its funding in limbo and its future questionable, the Chicago Transit Authority has been saved from fare hikes and service cuts by an increase in county sales taxes.

1 minute read

January 20, 2008, 9:00 AM PST

By Nate Berg

"Transit leaders waved off Sunday's so-called doomsday even as they noted it will be up to two months before they figure out how to provide free rides on the CTA, Metra and Pace for people 65 and older.The measure solves public transit funding for now, with a price tag of $530 million. On April 1, the sales tax will increase by a quarter-cent per dollar in Cook County and twice that in the suburbs. And Chicagoans are expected to face higher taxes on home sales."

"It is the first major reform of the transit system in 25 years, giving more oversight to the RTA, forcing CTA employees to carry more of the load for pension and health care benefits and providing suburban officials with millions of dollars to spend on local road and public safety projects from their share of the sales tax increase."

"Transit officials warned the job is only half done. RTA Chairman Jim Reilly said lawmakers now must turn their attention to finding money to repair the system's crumbling tracks, aging buses and rusting equipment, needs that could tally as much as $10 billion."

FULL STORY: Transit back on track

Friday, January 18, 2008 in The Chicago Tribune

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