RIDE THE EL, BUS IN CHICAGO? In 2009, CTA Rides Likely to Cost More!
DESPITE HIGHER RIDERSHIP THIS YEAR, HIGHER OPERATING COSTS LIKELY TO TRIGGER FARE INCREASE!
Politicians, and many riders (except, perhaps, for those waiting and waiting for a CTA Bus or El Train on a cold winter day) feel that public transit in Chicago is near tops in the U.S. Ridership is way up - being helped along by gas prices in the city often in excess of $4.30/gallon.
Next year, however, expect to pay more for a ride! It will be the first system-wide fare increase since 2006, and will be brought on by skyrocketing operating costs.
Testifying this morning before the Chicago City Council, CTA President Ron Huberman pointed to a combination of higher costs, and lower-than-expected tax revenue. Earlier this year, the Illinois State Legislature approved, and local officials enacted, an increase in the Sales Tax in Chicago, as well as a 40% increase in the Chicago Real Estate Transfer Tax. The goal - to stabilize local Chicago Mass Transit, and head off severe service cuts or fare increases.
At the eleventh hour, in exchange for his support of the sales tax portion of the bill, IL Governor Rod Blagojevich demanded, and got, a provision allowing those over the age of 65, holding a special ID Card, to ride for free on public transit across the state.
This past August, 92,000 senior citizens took advantages of free rides on CTA buses and trains. This compared to 63,000 average monthly riders before the free ride program, when those over 65 enjoyed half-price fares.
Said President Huberman, "Ultra-low diesel, which is what we use on our buses, has increased 80 percent. Next year, we will be spending $50 million more for the same quantity of fuel than we spent the prior year. Electrical costs are coming in over 25 percent higher than they were the prior year. That means that we will be spending $7 million more just for electricity.”
“The real estate transfer tax is coming in substantially below what we had anticipated. The sales tax is coming in at nine percent below. And the free rides program is also impacting our bottom line. When you take a look at the totality of those factors, it is creating a very challenging budget year.”
Huberman didn't indicate how much any possible fare increase would be, but many consider it a foregone conclusion, to be announced with the unveiling of the 2009 CTA Operating Budget next Thursday, October 9th.
Currently, riders pay a level fare across all CTA Buses and Trains - $2.00 for those paying cash, $1.75 for those using pre-paid Chicago and Chicago Plus Fare Cards. Transfers between lines, within two hours of the last ride - currently, 30 cents.
Jim Reilly, Chairman of the Regional Transportation Authority (RTA), of which the CTA is a part, laments that most fare increases, historically, come when a crisis arises. These fare jumps are usually very high, and put an immediate burden on those without other transportation options, many of whom are poor.
Now, Reilly suggests improved fiscal oversight will allow the RTA and the CTA to better control costs, and more efficiently time needed fare increases. In early September, the CTA cut costs by $40 Million in anticipation of its next fiscal year budget.
Stay tuned - but be prepared to pay more next year for your daily commute in Chicago!
See Chicago City Hall Reporter Fran Spielman's story in today's Chicago Sun-Times for more info.
DEAN MOSS & DEAN'S TEAM CHICAGO
