The Regional Transportation Authority (RTA) could face cuts of up to 20% in its 2026 budget without new sources of revenue, based on a recent report.
The RTA, which encompasses the Chicago Transit Authority (CTA), Metra, and Pace, derives 19.5% of its revenue from federal relief funding, which is being exhausted in the upcoming fiscal year 2025 budget.
Based on current projections, the RTA might have to cut between 30% to 40% of the service routes on the CTA, Metra, and Pace lines if new revenue does not replace the disappearing federal relief funding.
RTA representatives are in the midst of meeting with officials throughout the Chicago metropolitan region to discuss the deficit and address lobbying efforts with the Illinois General Assembly during next year’s legislative session.
Rising costs and declining revenue
Leanne Redden, executive director of the RTA, gave a presentation on the entity’s proposed fiscal year 2025 budget, which includes total regional expenses in the range of $4.147 billion, at a DuPage County Board meeting on Tuesday, Nov. 12.
Next year’s spending plan, as drafted, is a 5.7% increase from the 2024 budget. Continued service restorations and higher labor costs in response to workforce challenges are among the reasons cited for the rising figures on the expense side of the financial ledger.
Alongside rising costs is the anticipated loss of federal relief funding, which is nearly one-fifth of the $4.182 billion the RTA anticipates collecting in 2025 to fund operations between the CTA, Metra and Pace.
“The great risk we face right now is inaction,” Redden said. “If we don’t receive and have a sense of what our funding situation looks like by May 2025, we are going to have to shift from the current focus of the momentum that the three operators have, to what we’re required to do by federal law, and that’s planning for service cuts and fare increases.”
‘A year of momentum and growth’ for RTA
John Retondo represents DuPage County on RTA’s board of directors. He spoke briefly on Metra and Pace, the two agencies that most directly serve residents in Naperville and other communities across DuPage County.
“Metra and Pace have continued to provide vital transportation options to people in DuPage County,” Retondo said. “They are welcoming riders back with flexible schedules. We are seeing more collaboration between the agencies than ever before.”
The RTA might be grappling with large-scale revenue-related questions, but Redden and other officials said the organization has recorded encouraging ridership figures across the three agencies — particularly in the middle of the workweek and throughout the weekend.
“We have been seeing year-over-year, double-digit growth,” Redden said. “Is it where we were before COVID? Absolutely not.”
As the RTA looks to expand and evolve service products across the CTA, Metra and Pace, Redden said a series of tweaks that will require further expenses might be necessary to achieve the vision.
“If we choose to invest in our system, we will be able to secure stable funding,” Redden said. “The ridership is going to be able to grow, we’ll be able to put more service out on the street and we’re going to be able to connect people to jobs and take more cars off the road.”
Looking ahead
The RTA’s full 2025 budget is currently open for public comment through Dec. 10. A formal virtual public hearing is slated to take place on Dec 3. The RTA board of directors is scheduled to vote on the budget on Dec. 19.
As for work on the budgets for 2026 and beyond, RTA officials have assembled a legislative agenda with the General Assembly that includes calls to fill the operating budget gap and increase operations funding by at least $1.5 billion annually.
Additionally, Redden said the RTA will be looking to the state to increase funding contributions for free and reduced fare programs and paratransit service offered in compliance with the Americans with Disabilities Act.
Long-term, Redden said she believes multiple strategies will be necessary to address funding challenges.
“I think we are open to all options,” Redden said. “I don’t think it will be one source of revenue that is going to be able to fulfill the gap.”
Several DuPage County Board members shared their support for the RTA and its overall mission across the entire region.
“I think pubic transit is incredibly important for our economy,” District 3 commissioner Kari Galassi said.
If you have a story idea, we want to hear from you!
