The Civic Federation, the Chicago Metropolitan Agency for Planning, the Illinois Economic Policy Institute and the Center for Tax and Budget Accountability recently released a report calling for the expansion of the sales tax to several services, claiming such a move could raise $2 billion for the state.
The state imposes an additional sales tax in the Regional Transit Authority’s jurisdiction. Last week’s study found that expanding those specific RTA sales taxes to services could generate an additional $315 million per year.
There’s been a little talk behind the scenes of slightly lowering the 6.25% state sales tax if services were also taxed, except possibly in the RTA zone, when a quarter of a percent might also go to transit.
Whatever happens, something important is being overlooked in the coverage so far.
As far back as September, Gov. JB Pritzker has said that local governments within the RTA’s coverage area would also have to step up on funding. “Of course, Springfield is going to be a very important part of that. We’re not the only funder or the only available partner in that, but certainly we’re trying to put together a plan that will make sense for the future,” Pritzker said on Sept. 4.
On Feb. 4, Pritzker said, “When we look at the question of mass transit, we’ve got to consider everything that contributes to that, state government, county government, city government, as well as the fare box and all those things together are going to help solve the problem.”
Two weeks later, Pritzker again mentioned transit fares: “There will be adjustments to the fare box, probably.” And on total costs, he said, “who’s covering how much of that is a negotiation that will take place.”
The CTA, for example, hasn’t increased fares since 2018, and that was the first increase in nine years. Adjusting for inflation, fares should be about $3 for an L train ride, instead of the $2.50 they are today.
On March 21, Pritzker urged negotiators to “come to a conclusion” on transit reforms “soon,” and then, he said, “everybody’s got to step up on the funding.”
Pretty much everyone at the statehouse has said that funding won’t happen without reform. But the transit leaders are still demanding lots more money without interference with their governance.
“It’s something that I think we all understand is necessary soon,” the governor repeated, emphasizing the word “soon.”
But the difficulty in finding a solution to the many problems at the transit agencies was highlighted in a committee hearing last week.
My associate Isabel Miller told subscribers earlier this month that Rep. Marty Moylan, D-Des Plaines, produced documentation showing that Chicago-area mass transit system overtime payments totaled almost $800 million in a four-year period.
“From 2020 to 2024, Metra, CTA and PACE paid over $778 million in overtime to employees,” Transportation: Regulation, Roads and Bridges Committee Chair Moylan told committee members, according to a story written by Isabel.
But House Assistant Majority Leader Marcus Evans, the sponsor of the labor-backed transit reform bill, pushed back against his fellow Democrat. “We need to move on from the overtime,” according to Isabel’s reporting.
“That’s just a reflection of mismanagement. So quoting large overtime numbers, I think, is disingenuous,” Evans, D-Chicago, said.
Moylan agreed that managers and supervisors must be held to account for the massive overtime expenditures, Isabel reported.
“We have to hire more people — whatever we have to do to alleviate this,” Moylan said. “It’s a big concern, and it’s going to be a big problem, a logistics nightmare for myself and others.”
After the hearing, Isabel reported, Moylan distributed a document to committee members outlining the highest overtime earners.
According to the document, a CTA ironworker general foreperson who earned $320,000 in 2024 worked 1,666.5 overtime hours. Without overtime, his base salary would’ve been $113,000. A Metra mechanical relief foreman logged 2,005 overtime hours, earning $138,600 in overtime pay. A PACE master mechanic worked more than 620 overtime hours, adding $73,467 to his 2024 salary.
After the committee hearing, Isabel asked Evans to elaborate. “We need more truth in the story of overtime,” he told her.
“Most workers in transit don’t accrue overtime. People call off a lot in transit in [inclement] weather, so some workers have to stay,” Evans said. “It’s not these evil workers that are greedy.”
Moylan told Isabel he’s not going to call a mass transit bill until there is some solution for overtime costs.
“Soon” is a relevant term.
Rich Miller also publishes Capitol Fax, a daily political newsletter, and CapitolFax.com.
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