Interesting
story from the Orlando Sentinel's Corporate Owners... why didn't the
Orlando Sentinel run this story with all of their other commuter rail
promotions?
CHICAGO -- The financial
condition of the Chicago area's mass transit systems is so precarious that even
doubling fares wouldn't generate enough money to bail them out, the state's top
auditor said Thursday.
Auditor General William Holland doesn't
advocate such a drastic measure, but the scenario helps illustrate the financial
straits faced by the Chicago Transit Authority, Metra rail and Pace suburban bus
service.
"The needs are real, the problems are real," Holland said about
the audit commissioned by lawmakers.
The audit suggests the General
Assembly review the funding formula that relies on regional sales tax and hasn't
been updated since 1983. It also suggests lawmakers look at ways to better
organize the agencies and the Regional Transportation Authority that oversees
them.
Holland said the agencies have operating and capital needs this
year of $800 million to $1 billion. Operating expenses over the last five years
have increased at three times the rate of revenue, he said.
Without more money, Holland warned, there will
be more delays and service breakdowns.
"The quality of the service will continue to
decline and the riders will not be happy with that," Holland said.
The metropolitan area relies heavily on mass transit, with one in eight
people using it to get to work, Holland said. Chicagoans are even more dependent
on it, with one in four people riding
trains and buses to their jobs.
"Insufficient funding is at the
root of the challenges facing the CTA today, and I'm very pleased that the
Auditor General's report recognizes that funding is an issue that needs to be
addressed," CTA President Frank Kruesi said.
CTA spokeswoman Noelle
Gaffney wouldn't speculate on the possibility of fare increase to pump up the
coffers.
"I think it's premature to be speculating on what the future
holds," she said.
In CTA comments included with the audit, the agency
said increasing fares faster than inflation was not a long-term fix to funding
problems because it would do nothing but
increase traffic congestion as people took to their cars.
Pace
Chairman Richard Kwasneski said in a written statement that the audit report did
a good job identifying issues faced by the agencies, and Pace plans to act on
its recommendations.
He said Pace is "eager to work out what's best for
the public on these issues or any measures that would improve the effectiveness
of the region's mass transit system."
Metra officials said they were
pleased the auditor's report found the commuter railroad had lower costs than
other similar agencies, adding they too would work to implement recommendations
to improve efficiency and cost-effectiveness.
"Metra has always strived
to be one of the premier railroads in the nation," Executive Director Philip A.
Pagano said in a written statement.
While the audit said Metra was in "a good
financial position," it pointed out that the railways' operating costs have
outpaced operating revenue and the assistance it gets from the RTA. Metra
officials also contend their capital needs are greater than the current level of
investment, according to the audit.
RTA officials said Holland's
report should quell the debate over the need for more state or regional dollars
to fund mass transit.
"This
report puts to rest any question about the need for more dollars," said RTA
Chairman Jim Reilly.
David Dring, a spokesman for House Minority
Leader Tim Cross, said a capital bill
put forth by Cross includes $3 billion over 20 years for roads and mass transit.
Among the other findings in the audit:
--The CTA has some
of the highest salaries in the country for top bus operators and vehicle
maintenance workers, and high pension costs have driven benefits to top levels
too. Metra has lower costs than other similar agencies.
Gaffney, the CTA
spokeswoman, said where the CTA ranks on salaries depends on what data is used.
The audit notes differences between its results and a CTA wage survey.
--The CTA has about $46 million in annual absenteeism costs because
employees aren't at work, an amount higher than at Metra and Pace and at other
agencies around the country, Holland said.
Gaffney said the CTA is
working to lower that figure, which she said includes people who are out of work
for legitimate reasons. She said their consultants found the CTA figure to be
lower or comparable to other transit systems of its type.
--Another
looming problem is the CTA retirement plan. Its liabilities jumped from $2.2 billion in
2000 to $3.5 billion in 2006, while its assets fell by $500 million. The plan
could run out of money for retiree health benefits this year, according to the
report.
Holland also
found the transit agencies do a poor job of coordinating their services and
financial plans. For instance, they could set up one fare plan that
encourages transfers among the various transit systems, and the CTA and Pace
could coordinate overlapping bus routes.
