Illinois lawmakers passed a new plan to keep Chicago-area public transit running. The plan hikes sales taxes in the Chicago area but stops major service cuts for the Chicago Transit Authority, Metra, and Pace.
Illinois lawmakers passed a plan to fund Chicago-area transit in a late-night vote early Oct. 31. The plan will raise the sales tax in the Chicago area but avoided statewide tax hikes from earlier proposals.
Highlights of the plan:
● $860 million from the state motor fuel sales tax
● $200 million in interest from the road fund
● A 0.25% sales tax increase in the Chicago area
● Toll increases: 30% for trucks and 45 cents more for cars
Instead of creating new statewide taxes, lawmakers chose to move around money that already comes into the state. The plan uses about $860 million from the state’s motor fuel sales tax, $200 million in interest from the state road fund, and allows the Regional Transit Authority to raise its local sales tax by 0.25 percentage points in the Chicago area.
Lawmakers also approved higher tolls on the Illinois Tollway, up 30% for trucks and about 45 cents more per trip for cars to raise up to $1 billion a year. This money won’t go to public transportation but to refill the road fund. Lawmakers introduced this to appease union labor.
Earlier in the week, Gov. J.B. Pritzker rejected a different plan that would have taxed streaming services, ticketed events and capital gains for billionaires. Lawmakers then came back with this simpler plan to avoid big tax hikes while keeping buses and trains running.
The Illinois Policy Institute warned against any statewide tax hikes for Chicago-area transit, a service which doesn’t apply to millions of people in central and southern Illinois. Lawmakers should focus on long-term reforms fixing the Chicago Transit Authority’s spending and performance problems instead of moving money around to cover shortfalls.
