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RTA July 2025 Board Meeting — Transcript

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0:00like the other things I wasn't.
0:28Yeah.
0:41We're live.
0:41>> Yeah,
0:53>> we're live.
0:56Let
0:59me just walk up and tell you
1:02that you can't
1:12say.
1:14>> Yes.
1:25>> Oh well.
1:28There are notebooks back there.
1:32There's like a there's a couple spare
1:34ones back there.
1:42>> Okay.
1:48>> I am getting the thumbs up from the
1:50secretary that we are live. Uh so good
1:54morning to all attending the RTA's
1:56meeting of the board of directors. Want
1:58to review a few guidelines for our
2:01meeting today. For the members who are
2:05in person, please turn your microphones
2:07on when you wish to speak and off when
2:10you are done. So we limit the uh uh the
2:13microphones to one at a time. And I'll
2:17call on you if you have questions or
2:19comments uh if you're here in person.
2:22For those calling in remotely, keep your
2:24audio on mute as much as possible to
2:27minimize the background noise, which may
2:30impair the recording of our meeting this
2:33morning.
2:34>> When you have a question or comment, if
2:36you're remote, please raise your virtual
2:38hand. Uh you've gotten good at that over
2:40the last few years. And the board
2:42secretary will call on board members who
2:44have raised their hand uh one at a time.
2:49when she calls your hand, if you can,
2:51uh, if you're remote, try to remember to
2:54unmute yourself before you speak. With
2:56that said, I will now officially call
2:59the meeting of the board of directors of
3:00the regional transportation authority to
3:03order. And will everybody in the
3:05audience please rise for the pledge of
3:07>> allegiance?
3:11To the flag of the United States of
3:14America to the republic for it stands
3:18one nation
3:20indivisibley
3:22and justice for all.
3:35All right, we are all here and
3:36assembled. Um, I want to welcome uh we
3:39have a new member of our board uh Erica
3:42Walker. It is so nice to have you here.
3:46Uh, and uh, if you would just tell us
3:48tell us what you do and what's your
3:49what's your background a little bit and
3:51welcome.
3:53>> Thank you so much. Good morning. I am
3:55Erica Walker. I own the Walker Thomas
3:57Group. We focus on leadership
3:59development, coaching, HR, and a little
4:02bit of de and I. I am your people person
4:06and it is a pleasure to be here.
4:08>> Oh, thank you. You are a great addition
4:10and obviously we can all use uh training
4:13on leadership
4:15uh as well as just our relationship. So,
4:18it's great to have you here and we
4:20really look forward to uh to working
4:22with you. I want to thank also director
4:25Jamie Gaving for her service on this
4:28board and uh wish her well and I know
4:31she will continue to be a great advocate
4:34uh for transit but I thank Jamie very
4:36much for her service to this board.
4:39>> Um item three is the approval of the
4:42minutes from the board meeting and
4:43executive session.
4:44>> We need to do roll call.
4:45>> June 12th and before we do that um Joey
4:50take the role Madam Secretary.
4:51>> Good morning everyone. Uh, Director
4:53Kerry
4:53>> here.
4:54>> Dr. Coulson
4:55>> here.
4:55>> Dr. Gorman here.
4:56>> Dr. Groven
4:57>> here.
4:57>> Dr. Jenkins
4:58>> here.
4:59>> Dr.Qatar
4:59>> here.
5:00>> Dr. Lewis
5:00>> here.
5:01>> Dr. Mandereo
5:02>> yes.
5:02>> Dr. Rando
5:04>> here.
5:04>> Dr. Ross
5:05>> here.
5:05>> Director Ryan
5:06>> here.
5:06>> Dr. Sager
5:07>> here.
5:07>> Director Walker
5:08>> here.
5:09>> Director Yonan
5:10>> here.
5:10>> And Chairman Dillard
5:11>> present.
5:11>> Yeah. Uh 15 present. got so excited to
5:14welcome uh uh Director Walker that uh we
5:18needed to take that what I call the the
5:20the the roll call for attendance which
5:24lets us know if we have a quorum and
5:26obviously we do as always. Um I want to
5:29thank as always um this board has
5:31basically almost always had perfect
5:34attendance. Um, some of you have other
5:36business interests that take you out of
5:38town from time to time and even
5:40sometimes when you're out working on
5:41other business, you call in and um, this
5:44board has a tremendous tremendous uh,
5:47attendance uh, history um, to itself.
5:50Um,
5:52Joey, do you have a statement to read
5:56um, regarding uh, an executive session
5:59that was held on June 12th?
6:06Yes. Um, as required under the Illinois
6:08Open Meetings Act 5 ILCS120.06D,
6:15the board of directors met and
6:17determined that the need for
6:18confidentiality still exists as to all
6:20the remaining closed executive session
6:23meeting minutes. Based on its review,
6:25the board reached consensus that there
6:26are no meeting minutes to release at
6:28this time. The board also approved the
6:30destruction of the verbatim recordings
6:32from executive session meetings between
6:34June 2023 and December 2023.
6:37>> Great. Thank you. Um with that, any
6:40comments or corrections to our minutes
6:42from June 12th? Um seeing none, if not,
6:46how about a motion and a second that we
6:48approve these? Dr. Sager moves that we
6:50approve, seconded by Director Groven. Uh
6:54we approve the minutes from June 12th.
6:56Um, and Madam Secretary, please take the
6:59role.
6:59>> Dr. Kerry,
7:01>> I.
7:01>> Dr. Coulson.
7:02>> Dr. Gorman.
7:03>> Hi.
7:04>> Dr. Groven.
7:04>> Hi.
7:05>> Dr. Jenkins.
7:06>> Hi.
7:06>> Dr.Qatar.
7:07>> Hi.
7:07>> Dr. Lewis.
7:08>> Yes.
7:08>> Dr. Monero.
7:09>> Yes.
7:10>> Dr. Otando.
7:11>> Yes.
7:11>> Dr. Ross.
7:12>> Yes.
7:12>> Dr. Ryan.
7:13>> Yes.
7:13>> Dr. Sager.
7:14>> Yes.
7:14>> Dr. Walker.
7:15>> Yes.
7:16>> Dr. Yonan.
7:16>> Hi.
7:17>> Chairman Dillard.
7:18>> Present. Yes.
7:18>> 15 eyes.
7:20>> Um, and our minutes are approved in item
7:24three. Item four is the public comments
7:27segment of the meeting. Um, any comments
7:30received now will be read into the
7:32record by the board secretary. Did we
7:35have any come in from a written
7:36standoint?
7:37>> No written comments.
7:38>> Excellent. There are four people that I
7:40know of that wish to speak today. Uh,
7:43and the first is our longtime friend
7:45Audrey Winnick. Audrey, come on up.
7:47Thank you. Thanks for being here.
8:00Good morning. Thank you, Chairman
8:02Dillard and the board for the
8:03opportunity to address you today. I'm
8:05Audrey Wen. I'm a senior director at the
8:07Metropolitan Planning Council. MPC is a
8:11nonprofit regional urban planning and
8:13policy organization with a long track
8:15record in advocating for transit policy
8:18in the region.
8:20We know that RTA has said it supports
8:22transit governance reform and the region
8:24needs increased funding to expand the
8:26system. Legislation to reform governance
8:29was filed in the House this legislative
8:32session as SB211
8:34and in the Senate as HB 3438,
8:37the Northern Illinois Transit Authority
8:39Act. As advocates, we are very
8:42supportive of the policy elements
8:44included in these bills.
8:46Let's remember why we are pursuing
8:48regional reform. The structure of having
8:51four separate transit agencies with 47
8:53board members is not working. We
8:55currently have no centralized integrated
8:57planning function and consequently no
8:59regional transit plan. Riders have great
9:02difficulty transferring between the
9:04different systems. We do not have
9:05integrated fairs. The one-day system
9:08pass that was just released is not
9:10intuitive. Riders have lost confidence
9:12in the system and many have abandoned
9:14it. At the same time, we need people to
9:17want to ride transit more than ever for
9:20the climate, for the economy, and so
9:22households have affordable
9:23transportation.
9:25I certainly don't want to live in
9:27Chicago anymore if there's no transit.
9:28That's one of the reasons I moved here.
9:31The Nita proposal is tremendously
9:33exciting and represents major reform
9:35designed to address the shortcomings of
9:37our current structure. A few of the many
9:39highlights are it will reform and
9:42empower a new northern Illinois transit
9:44authority which will have sole authority
9:46to set fairs, develop a strategic plan
9:49and service standards. Nidita will have
9:51the final authority to delegate powers
9:54to the service boards beyond their
9:55primary responsibility to do what they
9:57do best deliver service. The total
10:00number of board members will be
10:01streamlined from 47 to 33 and a number
10:04of the NITA board members would also
10:06serve on either CTA Metro or PACE
10:09boards. This overlap is an innovation
10:11that will enable both regional vision
10:13and high levels of coordination.
10:15The governor's office would also have a
10:17seat at the table to provide a regional
10:19and statewide perspective so we can take
10:22a rider centric approach to enabling
10:24mobility throughout the region as well
10:26as connections to other systems like
10:28intercity rail. For the first time, a
10:30regional service plan will be developed
10:32so the region will know exactly where
10:34service will be developed and provided
10:37everywhere in the six county region and
10:39ensure that service boards deliver it.
10:41The legislation provides authority for
10:44needed to do joint development,
10:45something transit agencies have
10:47requested for a long time. It eliminates
10:50parking minimums so station areas can be
10:52more walkable and less oriented. This is
10:54a major step forward so that more people
10:56in this region can live, work, and enjoy
10:59recreation near transit.
11:01There will be a transition period and
11:03the bills provide details on how that
11:06process should occur. Details will need
11:08to be figured out along the way, but
11:10NATO was structured to focus to keep a
11:13focus on the riders collaboration and
11:15doing what's best for the region as a
11:17whole. We as advocates are very
11:19optimistic this new structure will set
11:21us up for success in the long term for
11:24the next t 30 40 years.
11:27The Senate bill provides more than $1
11:29billion in funding and we know that
11:31number needs to be higher and some
11:33funding sources need to be modified. We
11:36will continue to advocate for
11:37transformative levels of funding.
11:40Some of this execution of this
11:43implementation will depend on our
11:45ability to attract excellent worldclass
11:47leadership to navigate the many
11:48decisions ahead. There's only so much
11:50that can be written into law. But we are
11:52tremendously optimistic this will be a
11:54turning point for transit in the Chicago
11:56region. A rebranding, a resetting, a
11:59fresh start. And overall, this is a
12:01tremendous piece of forward-thinking
12:02legislation. We encourage RTA to embrace
12:05it. We can't wait for this legislation
12:07to be passed by the general assembly and
12:09for our region to start implementing it.
12:12Thank you.
12:14>> Thank you very much. Um any questions or
12:17comments for uh Audrey?
12:22>> Yes, Dr. Sager.
12:23>> Audrey, first off, thank you so much for
12:25being here today and thank you for your
12:26commentary. We appreciate that
12:28extremely.
12:29So, um, you pointed out
12:34positive elements of the proposed
12:36legislation that has been passed by the
12:38Senate and is now moving on for further
12:41consideration.
12:42Are there items or aspects of the
12:46legislation that you are concerned about
12:49that you uh believe need to be reviewed
12:53and
12:55uh managed, I guess, to have a stronger
12:58bill?
13:02having been very involved in the
13:03negotiations um you know I think we feel
13:06it's a very strong bill that's not to
13:08say there aren't maybe you know tiny
13:10administrative things that you know like
13:12dates and things like that it depends on
13:14on when um when it gets passed uh and
13:18then the dates will cascade out of it.
13:20We I think um the legislators certainly
13:23welcome input for any from any of the
13:25operators on any elements that are um
13:28technically have technical feasibility
13:30problems, but I think we're we're very
13:32optimistic about um about what it will
13:36deliver.
13:38>> Thank you. I I do agree. I think that
13:40there are uh certainly aspects of the
13:44bill that strengthen the capacity of
13:47this body, however it might be named and
13:50however it might be represented. Um that
13:53are going to provide a stronger source
13:56of collaborative effort between the
13:57service boards and this body on one
14:00hand. uh greater opportunity for this
14:02body to interject um needed
14:08impetus for action by the service boards
14:11and also our ability to uh truly I think
14:16better manage the fiscal and financial
14:19responsibilities of the entire system.
14:22So I I do think that there is strength
14:24there. I'm a little bit concerned and
14:27I'm going to be blunt about this I
14:28guess. Uh while I do think that the
14:30integration of board members from this
14:32body into the other boards uh is a a
14:36unique and a possible tie and
14:38opportunity, uh it does create
14:42um
14:44additional requirements or time from
14:47members of of this body, however that is
14:50named, uh to serve on the other service
14:54boards as well. And so I'm hoping beyond
14:58hope that there will be individuals out
15:01there who are willing to do just that to
15:04commit a greater amount of time um to
15:08the entirety of the system. So that's
15:11something I think we have to think about
15:13a little bit and uh I trust I hope
15:16chairman that individuals of the nature
15:18that are on this body right now uh who
15:21are extremely dedicated to transit and
15:24to uh fiscally strong management overall
15:29are willing to put in the time and the
15:31effort to serve on uh two boards and to
15:36do that um with a sense of enthusiasm.
15:39has an excitement to lead us into the
15:42future.
15:43I'm not going to say anything about pay,
15:45although I think that's an element.
15:48>> Thank you, doctor.
15:51Any other questions or comments? Uh I do
15:55agree uh Audrey on the time commitment
15:58of the overlapping as I call them as
16:00well as the chair's time commitment. Um
16:04and u you know that's something I think
16:06we need to think about. Um I just want
16:09to make it clear the RTA is always um
16:11don't confuse us with necessarily the
16:14service boards. We have always been for
16:16meaningful reform uh and um look forward
16:20to you know the continuation of working
16:23with you and the legislators uh on
16:26whatever will be the the final outcome
16:28with respect to uh governance. So thank
16:30you. Thank you very much for your
16:32advocacy.
16:35Okay, next. Danny Robels. Danny, come on
16:39up.
16:49Good morning, Chairman Dillard and
16:51members of the RTA board. My name is
16:53Danny Robles. I am the legislative
16:55director with the Illinois Environmental
16:56Council and a co-chair in the Illinois
16:59Clean Jobs Coalition Clean and Equitable
17:01Transportation Campaign. I come before
17:03you today to speak on the environmental
17:05benefits of HP 3438 and SB 2111, the
17:09bills that would transform public
17:11transit in Illinois.
17:13Illinois transportation sector produces
17:15more climate warming greenhouse gas
17:16emissions or GHGs than the power,
17:19residential, and industrial sectors. GHG
17:23emissions create unstable climate
17:24conditions and pollute the air we
17:26breathe. These emissions are
17:27particularly harmful to lowincome black
17:30and brown communities that are already
17:32overburdened with industrial pollution.
17:34The climate crisis is real and it's
17:37here. We're experiencing more extreme
17:39heat, hazardous air quality conditions
17:42and flooding than ever before. And these
17:44issues impact our health and our economy
17:46every single day. And that is why we are
17:48working to advance transportation
17:50policies that help Illinois reduce
17:52emissions and continue to lead on
17:54climate. And one of the fastest ways to
17:56combat climate change and promote
17:58healthier air quality is by having a
18:00robust and dependable public transit
18:02system. The more reliable, safe, and
18:05accessible buses and trains in
18:06operations taking people to key
18:09destinations for work, healthcare,
18:10education, and entertainment, the less
18:13people will have to rely on personal
18:14vehicles to get around. And this allows
18:16for less congestions on the roads and
18:18allows for other vehicles to move
18:20faster, reducing idling. Public transit
18:24and related infrastructure is essential
18:26to improve conditions for our state to
18:28meet our climate goals. The legislation
18:31introduced this spring, HP 3438 in the
18:33Senate and SP 2111 in the House, will
18:36take long overdue steps to ensure
18:38transit agencies deliver a coordinated
18:40and costefficient regional transit agent
18:43service that is focused on travel needs
18:45for riders. It will ensure that transit
18:47supportive development can help create
18:49more vibrant walkable transit station
18:51areas and quarters, increasing house
18:53affordability.
18:55The reforms in HP3438 and 2111, coupled
18:58with $ 1.5 billion in annual investment
19:01in transit, will make sure that
19:03Illinoisans have access to safe and
19:05reliable and affordable transit for
19:06generations to come. It took a lot of
19:09hard work to reach consensus on these
19:11reforms. And while we have more work to
19:13do to land the final legislative
19:14package, we believe a total
19:16transformation of the transit sector is
19:18possible if we work together. We've been
19:20consistently coming to the table
19:22together for months to ensure million
19:24Illinoisans who rely on public transit
19:26daily can do so more affordably and
19:29reliably than ever before and that the
19:3215,000 workers who are employed by CTA,
19:34Metropace, and RTA can continue to work
19:36good paying jobs that provide essential
19:39services for our region. We are
19:41committed to continue to do the work
19:42with RTA, legislators, and other
19:44stakeholders this summer and into the
19:46fall if needed to get this done. Our
19:49transit system, our communities, and our
19:51climate are counting on it.
19:56>> Thank you, Mr. Rolls. Anybody u have any
19:59questions for Danny while he's here? Um,
20:03thank you very much. We appreciate
20:04you're always a a welcome visitor here.
20:08Uh, and I always tell anybody that
20:10listens, if you, uh, care about climate,
20:13uh, you know, we are in the
20:15transportation mass transit area, uh, a
20:19very, very small emitter. Even though we
20:21move 1.2 million riders a day, uh, only
20:252 to 3% of the greenhouse gas emissions
20:28come from mass transit, most come from
20:30automobiles. So, uh, we'll sing your
20:33praises and do your work that way, too.
20:36But ride transit if you care about the
20:38environment. Um, thank you very much,
20:40Danny.
20:42Just want to add before I call up the
20:43next one, Audrey, you're still here.
20:45Thank you. Um, we do have and we'll have
20:48a little test today, Audrey, on the ad
20:51hoc committee, which will hopefully be
20:54approved and meet later, uh, on the
20:57overlap concept um, as we've invited the
21:00chairs of the three service boards to,
21:02uh, be part of our ad hoc committee
21:05process. So it'll be interesting to see
21:07sort of how that works uh in practice.
21:10Uh but um just want to make sure that uh
21:15you know that that folks know of the
21:18collaboration that's going to take place
21:20on the ad hoc committee. It'll be an
21:22interesting concept to have the service
21:24board people sit at the table chairman
21:27with us uh as we as we work through u
21:30how we're going to deal with our our
21:32fiscal cliff. Um, next, um, Larry Dean.
21:35Larry, are you here?
21:38Come on up, sir. Welcome.
21:49>> Okay.
21:50>> Good morning, everybody.
21:52>> Um, good morning, chair and board. My
21:54name is Larry Dean. I'm an economic
21:57justice organizer at Access Living.
22:00Access Living is a disability policy and
22:02advocacy organization that um fights on
22:05the behalf of rights for the disabled.
22:08Um I'm coming today to advocate for the
22:11rap and tap program which is a ride
22:13share program that essentially
22:15subsidizes rides for people who are pace
22:18and pair transit riders. Um currently
22:20there are changes to be made to the rapt
22:23program that would limit those rides to
22:2530 rides per month. Um, this change
22:27would harm people with disabilities who
22:30rely on it every day to get to work, to
22:32school, to their healthcare
22:33appointments, and to other important
22:35things in their lives. During recent
22:38community discussions with
22:39transportation representatives about the
22:41fiscal cliff and its impact to our
22:43transportation services, there was
22:45almost no concrete solution presented
22:47about how the wrap tap program was going
22:49to be preserved in its current form.
22:52Instead of talking about how to
22:53strengthen our and expand our critical
22:56disability services, the conversation
22:58seemed to focus only on cuts to the
23:00program. It feels like disability
23:02services are the first thing on the
23:04chopping block, and that sends a painful
23:06message to our community. We are
23:09especially concerned about how little
23:10attention has been given to the real
23:12life consequences that limiting or
23:14restricting the rapid tap program would
23:17have on people with disabilities.
23:19Cutting back on these programs doesn't
23:21just hurt individuals. It undermines
23:23access to employment, healthcare,
23:25community, and independence. That loss
23:27of access and participation affects the
23:29entire region, not just disabled
23:32writers.
23:33Instead, we urge you to look at making
23:35the system more accessible for everyone.
23:37Investing in accessibility and expanding
23:39options like the rap and tap program or
23:42to just keep it in its form that's
23:44already is for the long-term fiscal
23:46strategy. Um, it helps more people use
23:49the system. It strengthens writership
23:51and it benefits the financial health of
23:53the transit network as a whole. We want
23:56to emphasize how important and
23:57appreciated the rapt program is to us.
24:01In contrast, pair transit which many
24:02people can't use because the
24:04qualification is based on functional use
24:07of fixed route systems. The rap and top
24:09offers practical flexibility and
24:11dignity. That is why it has become so
24:14popular and useful for many in the
24:16disabled comm disability community.
24:18While pair transit must be funded under
24:20the ADA, programs like wrap and tap go
24:22beyond the minimum requirements to truly
24:25support inclusion and equity. We are
24:28asking the RTA board not to treat wrap
24:30and tap as an extra that can be cut when
24:32times get difficult. instead protect and
24:35strengthen it as a vital part of a more
24:37equitable, accessible, and financially
24:40sustainable transit system for everyone.
24:43Thank you.
24:45>> Thank you very much, Larry. Any comments
24:48or or questions? Um, just I have a
24:52couple, Larry. Number one, obviously
24:54we've as a board um Rapid Tap we've
24:58we've studied and and we take very very
25:01seriously and understand, you know, the
25:04the the folks who use it and how much
25:07they like that particular program. And
25:11while it may be over and above what is
25:13actually mandated
25:15for ADA um paratransit services in some
25:20cases um anytime you or anybody who uses
25:24rapt sees a member of the state
25:27legislature uh or of state government uh
25:31it would greatly help every everyone who
25:35is is in need of ADA accessibility uh if
25:39the state would do more than cover just
25:424% of that mandate. For us, it's a
25:45massive hundreds of million dollar
25:48unfunded mandate from Springfield. And I
25:51take the ADA um services that we provide
25:55very very very seriously. It's one of
25:57the most if not the most important thing
26:00that we do. uh and um you know please
26:04tell the state and anytime you see
26:06anybody associated with the state um you
26:09got to fully fund ADA paratransit
26:11services and that in theory also helps
26:15rapid tap so thank you very much Mr.
26:19really appreciate it.
26:23All right, next. Kira Davis, are you
26:26here?
26:32>> Hi, Miss Davis. I wrote up on the
26:34elevator with you. I should have
26:36introduced myself to you.
26:39>> You
26:44barely.
26:48Thank you for being here.
26:49>> Thank you.
26:52I'm short. Sorry. Hi everybody.
26:56Greetings. Um
26:59my name is Kiara.
27:03Uh
27:05hi Mr. Chairman. Um
27:08can I just go by what I'm saying? Um, I
27:11would like I'm here to um ask for y'all
27:15not to cut um the aid and tap benefits
27:18because
27:20um I have three different disabilities,
27:22but also um I also been in three
27:25accidents. So sometimes it pays to run
27:29late or they miss me, whatever. I could
27:32be in pain and I need to go home. So
27:36it's I know it's a big big budget and I
27:40know that you have to cut somewhere but
27:43I ask is please be reasonable because
27:47you know some of us in physical pain
27:50some of us can't hardly stand up some of
27:53us are visually impaired so just look at
27:57it like okay you know make it and I'm an
28:01advocate too so I go into the community
28:03so I understand it but just bear with us
28:06like at the end of the day cuz we need
28:09this
28:11you know and not even that sometimes
28:13pace run late and sometimes you know
28:16they have a stop like in the suburbs
28:18they have a stop you know and how we
28:21supposed to get home you know what I'm
28:22saying like it's a safety hazard you
28:25know stuff happens think about y'all you
28:29know y'all disabled family members but
28:31y'all want them to be by theelves It's a
28:35safety hazard. I don't have
28:37transportation like that and it's the
28:38only transportation I do have is pace or
28:42you know they took you know that's all
28:45I'm saying but yeah
28:47>> thank you. No that's very helpful. How
28:49many times a month do you think you use
28:52rapid tab?
28:53>> Well I'm going be honest they they took
28:56that from me. So now I just do uh PACE
28:59and I use PACE like maybe like four to
29:02three days out of a week, not cool in
29:04the weekend cuz I'm an advocate. So I'm
29:07always in the community doing something.
29:10>> Which one did you use at home?
29:11>> Um I used it like maybe like four. It
29:16just depends on the week and sometimes I
29:18have to go to doctor's appointment so
29:19it's like
29:21you know it pays to be running late so I
29:23have to you know take a take a take a
29:26Uber cuz I be in pain you know
29:28especially as a woman you'll be so much
29:30in hurting with ovelation and all that
29:32stuff it's painful and by me being in
29:35three accidents it's really painful.
29:39>> Got it. No thank you thank you both uh
29:43for for being here. We really really
29:45appreciate your your time and your input
29:47and telling us about uh your situation.
29:50So, thank you very much.
29:52>> Thank you.
29:56>> Item five is the executive director's
30:00report. Leanne, it's all yours.
30:04>> Good morning, board members. Um I'm
30:07going to start by just kind of briefly
30:10outlining
30:12uh the process that we've laid out. uh
30:14the board essentially has laid out and
30:17sort of to set forward sort of our
30:19approach to transparently and accurately
30:22managing the development of the 2026
30:25budget given the fiscal cliff that we're
30:28facing. Uh and since the general
30:30assembly didn't reach agreement uh on
30:33funding and reforms prior to the end of
30:35this uh May session, we started some of
30:37that conversation last month and we're
30:40sort of just bringing you up to speed as
30:41to sort of how things are kind of
30:42progressing and playing out and the
30:44process that we're looking to follow for
30:46the coming months.
30:48We're still hopeful that the state
30:50lawmakers will come together and find a
30:52funding solution to avoid the fiscal
30:54cliff. However, we need to face the
30:57realities of the current funding
30:58situation that are right here in front
31:00of us. Now, as you're all aware, we've
31:02been preparing for this challenge for
31:05several years, tracking projected
31:07shortfalls. The long estimated um
31:10shortfall represents about 20% of the
31:14regional budget and updating those
31:16projections with the latest data in
31:18light of many financial variables at
31:20play including service board spending,
31:23service delivery, fairbox recovery,
31:26fairbox revenues I should say, and sales
31:28tax receipt that are impacted by the
31:31larger economy. We're continuing to
31:33track all of that information. One
31:36example of such a variable is the sales
31:38tax receipts. At our nove at our sorry
31:42June meeting, we presented a memo that
31:45included the information that the state
31:47law um went that went into effect in
31:50January this year that extended local
31:53taxes, including the RTA sales tax to
31:56capture more online transactions. In
32:00fact, we actually highlighted this for
32:01you back in June, the previous year when
32:04the law went into effect. Uh, and based
32:07on the actual results from the first
32:09quarter of 2025, which we talked about
32:11with you last month, this change has
32:14increased the RTA sales tax collection
32:17with the uh when you include the public
32:20transportation fund, which is the state
32:22match to the sales tax. We have now
32:25estimated that additional uh revenue to
32:28be about $156 million a year. So for
32:32context,
32:33150 million represents about 6% of the
32:36annual budget uh for the region's
32:39transit system and though is less than
32:424% of the annual RTA regional transit
32:45budget. So, understandably, we've
32:48received some questions about how this
32:50additional funding will impact the
32:52fiscal cliff and the timing of potential
32:55service reductions. We're committed to
32:58educating writers and lawmakers as we
33:01update the projections of available
33:03public funding for transit for 2026 and
33:06beyond. And I'm just going to quickly
33:08run through how we're going to approach
33:09that uh for the rest for this budget
33:12cycle specifically. During our last
33:15meeting, we reported that we were
33:17convening a fiscal cliff budget task
33:19force led by the RTA staff with
33:22membership uh and staff from all three
33:24service boards, CTA, Metra, and PACE to
33:27collectively develop funding forecasts,
33:30timelines for action uh and specifically
33:33actions that impact riders or that could
33:36impact writers. The task force has and
33:40will con continue to meet every two
33:42weeks through the budget season
33:45and that includes leadership from each
33:47agency's departments working together to
33:50update both the size and the timing of
33:53the projected shortfall to identify uh
33:56continue to identify potential
33:58efficiencies in our operations and find
34:01opportunities for further collaboration.
34:04Additionally, today this board will take
34:07action on the formation of a fiscal
34:09cliff ad hoc committee to help guide
34:12policy discussions on budget funding and
34:15reform. If approved, the committee's
34:17first meeting will be held immediately
34:19following this board meeting. One of the
34:22purposes of this overarching process is
34:25to really ensure that we're accur
34:28accurately can't say the word
34:30representing the size of our budget gap
34:32for 2026 and beyond and how that gap is
34:36going to impact writers.
34:40As to attend uh the additional sales tax
34:42that I mentioned, it's important to note
34:44that the RTA act as written by the
34:46general assembly maintains that most of
34:49the funding from sales tax collections
34:51be distributed to CTA, Metra and PACE
34:54via statutory formula. So this funding
34:57is contributing to the positive budget
35:00variances at each operating agency. This
35:02is something we have shown this meeting
35:04and actually every month and will
35:07continue continue to do so uh today and
35:09beyond.
35:11Staff at each agency and eventually this
35:13board will consider any positive budget
35:16variances for the individual service
35:18boards as we develop our 2026 budget and
35:22updated fiscal cliff projections through
35:24this budget year process. The collective
35:27goal of the RTA and the service service
35:30boards is to work together to delay any
35:32service cuts and impacts to riders that
35:36may occur because of the fiscal cliff
35:38for as long as possible.
35:40However, we must do this within the
35:43constraints of the current law and we
35:45will cover that in more detail in the ad
35:47hoc uh committee conversation later.
35:51We're committed to transparency and will
35:53share updated projections and public
35:56input and provide public input
35:57opportunities as often as we are
35:59available able to do throughout this
36:01process. So to facilitate this also
36:05yesterday we added a new fiscal cliff
36:08information hub to our website. That
36:10link will be included in our newsletter
36:12that goes out tomorrow and that page
36:15will be updated regularly with
36:17information as it's being developed so
36:19people can sort of see how we're
36:20tracking and the work that we and the
36:22staff at us in the service boards are
36:24doing.
36:26So, next slide, please.
36:30Rob's going to cover uh the legis the
36:32state legislative update when he
36:34presents in a couple of moments. So, I'm
36:36just going to stick to a quick update on
36:37the federal uh status in this discussion
36:40here. On July 4th, President Trump
36:43signed the federal budget reconciliation
36:45bill into law. The final legislation did
36:48not include uh any major provisions
36:50affecting public transit systems. The
36:53RTA and transit agencies though did
36:55organize against draft provisions that
36:58have been eliminated that could have
37:00eliminated the transit commuter benefit
37:02programs, weakened agency's bonding
37:04authorities
37:05uh and cut the into the proportion of
37:08highway trust fund dollars going to
37:10public transit. Our government of
37:13affairs staff will continue to stress
37:14the importance of maintaining and
37:16growing the share of the highway trust
37:18funds allocated to transit
37:20infrastructure as discussions around the
37:23next federal transportation
37:25reauthorization bill uh continuing
37:27really really are starting to get
37:29underway.
37:31On July 13, uh the House Transportation,
37:35the Transportation, Housing, and Urban
37:36Development or the Thud Group and
37:39related agencies, uh the the the THUDs
37:42appropriation subcommittee released its
37:44draft appropriations resolution that
37:47would make significant cuts to public
37:49transportation, passenger rail, and
37:51other US Department of Transportation
37:53programs.
37:55In this draft, the capital investment
37:58grant program which we rely our
38:00operators rely heavily on um those fund
38:04that fund sort of major new transit
38:06routes and extensions across the country
38:08is proposed to be cut by 75%. Sorry,
38:1257%.
38:13Um funding is also cut for the bus and
38:17bus facilities competitive grant
38:19program, the low and no emission bus
38:21grant program and better utilizing
38:24investments to leverage development or
38:26the build grants.
38:28The draft includes community uh project
38:32and earmark funding though for 12
38:34transit projects in our region totaling
38:37over 12 million. So, it's a bit of a
38:39sort of a mixed bag proposal, but we're
38:40continuing to work not just locally on
38:43this um but with our national partners
38:45as well as those conversations continue.
38:49Shortly before the draft was released,
38:51APA sent congressional budget leaders a
38:53letter urging full funding for public
38:55transportation at levels authorized in
38:57the IIGJA, which is the infrastructure
39:00investment and jobs act. Uh the Senate
39:02will release their own draft in the
39:04coming weeks and staff will continue to
39:07work as I noted with our statewide
39:08partners to urge for the Illinois
39:11delegation to continue to fully support
39:13to support full funding for transit in
39:15our region.
39:17So next slide.
39:19Looking at today's agenda, we'll begin
39:21with some monthly financial results.
39:24Then we're going to share some
39:25information from our uh peer regions and
39:28agencies and how they are specifically
39:30navigating their fiscal cliffs. I
39:32recently attended APA's rail conference
39:34and can tell you that the long-term
39:36funding challenges and fiscal cliff
39:39solutions continue to really be a key
39:41challenge across the country for uh all
39:44transit leaders uh and specifically for
39:47the larger big transit systems across
39:49the country.
39:51We'll continue to um after that we will
39:54provide you with information present uh
39:56presentation that broadly analyzes the
39:59sustainable transit and northern
40:00Illinois act. That is the essentially
40:03the senate bill that passed um in the
40:06house that was not t that passed in the
40:08senate I should say and was not taken up
40:10by the house in the last days of the
40:12general assembly. You heard some public
40:13comment about that already. This
40:15legislation, unlike the Metropolitan
40:17Mobility Act or the United We Move bill,
40:20has not been widely reviewed publicly or
40:23subject to broad public input. And as
40:26this board had asked, and we believe
40:28it's appropriate to begin that
40:30conversation and provide you with a
40:32forum for some of that discussion for
40:34both this body as well as for writers
40:36and residents generally across the
40:38region. We'll then ask for your vote on
40:41the formation of the fiscal cliff and uh
40:43fiscal cliff ad hoc committee as well as
40:45the appointment of an RTA pension board
40:48trustee and the approval of some travel
40:51expense reimbursements. Once approved,
40:54the ad hoc committee as I noted earlier
40:56will meet after this meeting concludes.
40:59And uh I will also note that if anyone
41:02is uh looking to participate virtually
41:04and members of the public uh this will
41:07be available on YouTube live or as a
41:10recording once the um ad hoc committee
41:13concludes meeting all the requirements
41:16uh of open meetings act. Uh there will
41:18be a separate link available to watch
41:20this meeting. uh you can find anyone
41:22who's listening in uh and is interested,
41:24they can find that information also on
41:26the RTA website meeting materials page.
41:30So with that, Mr. Chairman, I will turn
41:32it back to you.
41:33>> Thank you very much. Any questions or
41:36comments for Leanne at this part of her
41:39meeting or presentation? Michael Lewis,
41:42>> Leanne, just one quick question. You
41:43mentioned uh there will be a comparison
41:46of the physical cliffs at other transit
41:48agencies across the country that we'll
41:50discuss. Um ours is uh prompted uniquely
41:54by our circumstances. Is there anything
41:56that's across the board prompting all
41:58transit agencies to have a fiscal cliff
42:02uh initiative or is it just um you know
42:04kind of coincidental?
42:06>> No, our our situation is actually not
42:08unique. I mean most of the transit
42:10agencies in the country are facing um
42:13their cliff because of the very exact
42:15reasons we're facing at that uh
42:17primarily the core reasons is they
42:20they've run out and we're actually
42:21behind the we're behind the curve in a
42:23good way because we have more monies our
42:25cliff is hitting much later than many of
42:27our peers around the country. So it's
42:29it's not unique. Um we we probably the
42:32uniqueness of our circumstance is that
42:34the legislature hasn't acted yet. uh and
42:36as noted many times by the chairman and
42:38many others that you know the state's
42:41share and the state's contribution
42:42towards public transportation our region
42:44is really essentially the lowest in the
42:47country. So that's probably the
42:48uniqueness of our situation but I'll
42:50I'll save the rest for when you hear the
42:53full descriptions and what you'll hear
42:55is actually um a lot of similarities
42:57from why our fiscal cliff between our
43:00fiscal cliff and others.
43:04Director Kerry,
43:06>> Leon, you were talking about, we've seen
43:08in the press some questions about why is
43:10RTA still talking about $760 million
43:13when it's commonly known that there's
43:15this additional sales tax and we know
43:17that there might be other uh will be
43:19other factors also. So, this new page on
43:21the website, um I guess I have two
43:23questions. How much is that going to
43:26educate um people out there that were
43:29well aware of that that that number will
43:31change? Yeah, that's I mean I think
43:33absolutely that is the the sole
43:35intention of that website is to maintain
43:38that transparency, track the
43:40information, the data and the progress
43:42we're making on that. I think as we can
43:44as you hear through the rest of this
43:45meeting and into the ad hoc discussion
43:48um we can start we we're at sort of the
43:51point of identifying what the known
43:53revenues are into the system but the
43:56cliff is made up of a complexity of
43:58factors right that I noted. So revenues
44:01is one piece of it, but you know,
44:02writership, service boards, expenses,
44:05those timelines all have to factor in.
44:07So that's really one of the reasons why
44:09we've created both the staff task force
44:11working group as well as the ad hoc
44:14committee to sort of in real time
44:16continue to develop a lot of that
44:18information uh perhaps a little earlier
44:20than we normally would. If any I think
44:22you're most of you are familiar with the
44:23cadence of the budget cycle. It sort of
44:25kicks off in May. You approve funding
44:28marks in the August September time frame
44:30which sort of sets the estimated
44:32expenses for the region and then that's
44:34handed off to the service boards. You
44:36don't actually have the benefit of
44:37really even knowing what their budgets
44:38look like to sort of finalize the
44:40regional kind of status and fiscal cliff
44:43until sort of that September October
44:44time frame. Those milestones are
44:47statutoily dictated and they will
44:49continue to play out. But what we're
44:50trying to do is kind of move up to some
44:52extent some of that conversation in real
44:55time and start framing how that looks
44:57and then as transparently as possible
45:00lay out that information sort of on this
45:01website. So it's not just monthly
45:03check-ins at this board and maybe even
45:05in the ad hoc committee where we're
45:07talking about that stuff, but having it
45:08available for everybody to see and look
45:10at as it's being tweaked and and and um
45:13refined along the way. We won't really
45:16know a final number on the cliff and the
45:18timing until we kind of had that input
45:20from the service boards and with the
45:22caveat it could all kind of change
45:24because the market the the economy as a
45:26whole influences all of that. I mean
45:29you've already heard when we set the
45:30budget calendar and the schedule that
45:33while we've got some u financial
45:34forecasts that we put together we work
45:36with Moody's they gave us two forecasts.
45:38one was sort of a continued growth or
45:42continued steady economy and the other
45:44one was we're facing you know the
45:47volatility around Trump's um the um the
45:50tariffs and um you know other fiscal
45:53constraints and does that put they gave
45:55us a recession scenario and so these
45:57will be questions that you as the board
45:59will sort of weigh into before we
46:01actually even set the preliminary
46:03funding until we set their funding marks
46:05as to how robust we think the economy
46:07will be for example example. So while we
46:09are sort of seeing the trend on sales
46:11tax, we can report that as we're seeing
46:13it and have some projections, but I
46:15think we have to have continue that
46:17conversation as we do each year with you
46:19as to what you think those other market
46:20influences are will be before we kind of
46:22finalize that and want to just share
46:24that information in additional places
46:26than we normally just would at the board
46:28meetings.
46:29>> Okay.
46:30>> Too much of a long answer, but
46:31>> No, no, it was great. Um, and I think
46:33you answered my second question was just
46:35to confirm that we won't have a a final
46:37number of what the fiscal cliff might be
46:39till October, September, October because
46:41we we can figure out the marks the
46:44revenue and we'll present that in
46:45August. Um, but then until we know if
46:48the service board's going to put a fair
46:50increase in or do this, they're going to
46:51do that.
46:52>> Correct. I mean, we'll start and the
46:53hope is through the ad hoc committee and
46:55some of these conversations we start to
46:56see how that's looking and might have
46:58some estimates, but you're correct. It
47:00won't be really until and then we've
47:02done this is the last several years
47:03we've updated the fiscal cliff annually
47:06and you know as I noted and you just
47:08noted too I mean the the additional
47:10sales tax revenue we've been talking
47:12about really for more than a year now
47:14and we now know what those numbers are
47:16trending in and looking like uh and sort
47:18of starting to bake them into some of
47:20our thinking um and we'll continue that
47:23conversation.
47:24>> Okay. Thank you.
47:25>> Thank you director. It's amazing that
47:27Moody's has multiple forecasts. So, it
47:30tells me how fluid the world really is,
47:33including inflation, which we have not
47:35really had to deal with a few years ago.
47:42All right. Um Sarah Rubino, you want to
47:45come on up and give us our monthly
47:46financial results? Good morning.
47:55>> Hey, good morning, Mr. Mr. Chairman and
47:57Directors, I'm Sarah Rabbino, principal
47:59analyst, and this will be a brief update
48:01on the financial results of the service
48:02boards now through May. Next slide,
48:05please.
48:07So, the CTA, Metro, and Pace Suburban
48:09Service each reported favorable to
48:11budget operating deficits due to lower
48:13than budgeted operating expense
48:15performance. ADA paratransit's
48:18unfavorable operating deficit variance
48:20has grown to $10 million or 10% through
48:23May. This unfavorable variance
48:26represents the growing 2025 budget
48:28shortfall for ADA paratransit while PACE
48:31works toward addressing the action plan
48:33adopted by the board at last month's
48:35meeting. The 2025 shortfall will be
48:38discussed in more detail later this
48:40morning at the ad hoc committee meeting.
48:42The systemwide operating deficit of the
48:44service boards including ADA paratransit
48:46was about $1.2 billion. This result is
48:50$83 million or six and a half% favorable
48:52to budget.
48:54Next slide, please.
48:57As a region, through May, we've now used
48:59um 2.8 billion or 78% of the total COVID
49:03relief funding allocated to the system.
49:05For the year to date, the service boards
49:06have used about $91.6 million less than
49:10was budgeted due to strong sales tax
49:12receipts and favorable operating expense
49:14performance. This impact on COVID
49:16reserves will also be discussed in more
49:18detail at the ad hoc committee meeting
49:20and we'll continue to report the usage
49:22of federal COVID funds monthly as we
49:24enter the 26 budget season and approach
49:26the fiscal cliff. Um that concludes my
49:29brief presentation. Back to you, Mr.
49:31Chairman.
49:32>> Thank you. Any questions on Sarah's
49:35report other than we see that glowing or
49:39glaring I guess is the better word ADA u
49:43uh 10% number. I I've always looked at
49:46ADA as sort of our Medicaid issue. U as
49:52our demographics change uh it's you know
49:56the states under all states are under
49:58immense pressure for Medicaid funding.
50:01Um, you know, ours is ADA and and
50:04they're somewhat parallel. Um, but u
50:07I've just always viewed it as is as is
50:09our Medicaid uh type of problem. And
50:12just to before you leave, Sarah to to
50:16piggyback on what Director Lewis said,
50:19we have with the direction of this board
50:22and the strong direction of our staff,
50:25and it's to the service board's credit,
50:28we have managed our federal monies
50:30probably better than any other urban
50:32area in Chicago. We still have monies
50:35left. uh and uh we have done a better
50:38job I think than many cities in the
50:40stewardship uh of that money or we would
50:44be facing a much bigger crisis um than
50:48we are today. So, we have managed our
50:50federal monies uh very very well. For
50:54those of you who have been here a while,
50:56you remember we were worried about
50:57clawbacks from the federal government on
51:00those funds. But once we determined that
51:02they wouldn't get clawed back, we have,
51:04you know, really preserved and the
51:06credit goes to the management of of CTA,
51:09Metra, and Pace on how they've managed
51:11those monies so that we have as much
51:13time as we can to know what the fiscal
51:16cliff director Kerry is really going to
51:18be and to give our policy makers uh as
51:21much time as they need to make wise
51:24policy decisions working with uh the
51:27with Audrey and MPC and others. So, um,
51:31you know, we've managed our monies, I
51:32believe, better than most urban areas.
51:34So, thank you.
51:36>> Thank you.
51:38>> All right. Next is 6B,
51:41uh, which is our transit pier updates.
51:44Uh, Peter Kirsten is going to come up
51:47and give us our presentation.
51:49And I always love to know what, uh,
51:51other cities look like and how they're
51:54doing.
51:58Morning, Chairman Dillard and members of
51:59the board. I'm Peter Kirsten, manager of
52:01strategy and policy, and I'll be
52:03providing the board with an update on
52:04pure region fiscal cliffs, looking
52:07specifically at agency strategies uh
52:09that have been deployed, state actions
52:11and timelines. So for this, we looked uh
52:13across the US. The presentation will
52:16summarize findings from just a few
52:17including SEPTA in Philadelphia, BART in
52:20the San Francisco Bay area, MBTA in
52:23Boston, uh WADA in Washington DC, and
52:25MTA New York. Uh we've talked about this
52:28for several years now, but as a
52:30reminder, and particularly for any new
52:31board members, um the uh what's what's
52:36happening here in the RTA region with
52:38the RTA and the service boards um is
52:40similar uh to what agencies across the
52:42US are experiencing. um funding
52:44shortfalls as a result of changes in how
52:47people ride uh work from home, changing
52:49mobility patterns um being a really big
52:51contributor here. Large legacy systems
52:54like the RTA and service boards um have
52:56been navigating fiscal cliffs for the
52:58last couple years um that all generally
53:00represent about a 15 to 20% uh hole in
53:04their operations budget. Um go ahead to
53:06the next slide.
53:09So looking first at SEPTA serving the
53:11Philadelphia region. Um, SEPTA is going
53:14off the cliff this year. Uh, their
53:16fiscal cliff is currently projected uh
53:18about 240 million. Um, this is already
53:21after adopting a budget that included a
53:2320% service cut and a 21.5% fair
53:26increase last year. Some of those
53:28impacts were halted um by 153 million in
53:32one-time infusion of operating funds
53:34coming from their governor uh Governor
53:36Shapiro. And it was done by flexing uh
53:39highway funds to transit. Uh the adopted
53:42FY26 budget includes a 45% service cut,
53:4621.5 uh% fair increase. Both of those
53:49being phased in um beginning in August
53:52of this year. The state of Pennsylvania
53:54delayed the fiscal cliff with temporary
53:56funding. Um but the cliff is here uh
53:59here now and absent any last minute
54:02action, riders and the Philly region
54:04will begin experiencing the dramatic
54:06impacts in a few weeks. Um, and things
54:08will get worse in in into 2026.
54:11Next slide.
54:14Uh, next up is BART. BART is the
54:17regional rail operator serving the San
54:19Francisco Bay area in California. Their
54:22current cliff um started small in 2024,
54:24but will balloon to over 500 million uh
54:27by 2026. In 2024, the state of
54:30California provided 5.1 billion in
54:33one-time funding to all transit
54:35operators across the state. Uh this
54:37provided temporary relief for BART and
54:39other operators. Uh BART has also seen
54:42slower ridership recovery than uh many
54:44of its national peers, lowering
54:46operating revenues generated through
54:48fairs and kind of worsening the problem.
54:50A new ballot measure to be voted on in
54:52November could bring sales tax revenue
54:54for transit, including BART. Um, but
54:57likely too late specifically for BART to
54:59avoid cuts. Um, additionally, Governor
55:02Nuomo signed a 750 million zero interest
55:06loan uh for all Bay Area transit
55:08operators um as a funding bridge if that
55:12sales tax initiative passes. Um but
55:14still given the timing and the scope of
55:16BART's problems, it's unlikely that they
55:18will not uh experience significant
55:21service cuts in the short term. Next
55:24slide.
55:26So then looking at MBTA in Boston, um
55:31the Boston region is approaching about a
55:33700 million uh fiscal cliff uh beginning
55:36in 2027.
55:38Um in 2020 MB MBTA cut and reduced
55:41services mo service across modes um
55:44having already expended COVID relief
55:46funding. So in some ways MBTA actually
55:48already has gone off their cliff. Um
55:51MBTA is funded in part by sales tax but
55:53revenues have not grown with rising
55:55expenses. A state task force recommended
55:58uh fair share revenue to fund MBTA
56:00operations. The fair share amendment
56:02amends the state constitution to levy an
56:05additional 4% tax on income exceeding $1
56:08million. The resulting revenue can only
56:11be used for public education and
56:12transportation. The tax increase is
56:15expected to generate around 2 billion a
56:17year with a portion of that going to
56:19support MBTA operations. Um but the
56:22distribution of fair share revenue is
56:24still approved on an annual basis. So
56:26MBTA's budget certainty at this point
56:29only extends through 2026. Um but their
56:33their picture is looking a little bit
56:35more optimistic than some at the moment.
56:38Next slide.
56:40WADA serving the Washington DC region uh
56:43had a fiscal cliff projected at 750
56:46million beginning in 2024.
56:48Uh the AY's FY25 budget included phased
56:52service cuts, 12.5% fair increase. Um
56:56that also included uh expanded reduced
56:58uh fair programs. So they increased
57:00fairs but opened up reduced fairs to
57:02more people. Um and 95 million in
57:05savings and efficiencies that were
57:07actually uh realized over two years. The
57:10agency received 463 million uh from DC,
57:13Maryland, and Virginia governments in
57:16April of 2024, preventing the budget
57:18deficit in short and allowing the agency
57:20to fund full service. Um although other
57:23elements such as the fair increase have
57:25stayed in place. Uh currently their
57:27cliff is projected to be in 2028 as the
57:30DC region pursues long-term funding
57:32stability.
57:34Next slide.
57:36So then lastly, looking at MTA in New
57:39York, uh their cliff hit in 2023. Um at
57:42the time it was projected a deficit of
57:44600 million and then growing in future
57:46years. Uh the state and city of New York
57:49acted quickly increasing the payroll
57:52mobility tax um and the city increasing
57:54funding of its paratransit operations
57:56that MTA provides. Um, additionally, MTA
57:59identified 100 million in efficiencies
58:02uh, initially with more opportunities to
58:04save costs in the future. Um, MTA also
58:07controls bridge and tunnel tolls into
58:09Manhattan, increasing tolls 5.5% uh, and
58:12transit fairs by 4% generated about
58:15another 117 million in revenue. Uh,
58:18lastly, the MTA has implemented the
58:20long-awaited congestion pricing program,
58:22which we've shared about with the board
58:24previously. Uh revenues from congestion
58:27pricing do not cover operations expense.
58:29Uh but this generational investment in
58:31capital will allow the agency to realize
58:33operation savings through improved
58:35efficiencies achieved with upgrades to
58:38their infrastructure.
58:39Um next slide.
58:44So kind of wrapping it up with key
58:46findings. Um as Chairman Dillard was
58:48saying, you know, Chicago has stretched
58:50COVID relief funds further than most
58:51peers nationally. Every peer we're
58:54covering today has expended uh all of
58:56their remaining relief funds. All of the
58:58peers we looked at have received some
59:00sort of stop gap funding action from
59:02their state and region. Um coming in a
59:05variety of formats. Illinois kind of
59:06stands out for not having acted so far.
59:10Only one state and region is on stable
59:11footing for operations revenue, MTA New
59:13York. Uh other states will require
59:16future legislation to provide long-term
59:18funding to their transit system. Um but
59:20obviously all peers here have elements
59:22that we can learn from um and take
59:24forward. Uh lastly, RTA and state of
59:27Illinois are unique in that while peers
59:29represent a variety of governance models
59:32um from centralized uh systems like the
59:34MBTA to a single mode agency like BART,
59:38um none of these peer states and regions
59:40are taking major governance reform to
59:42their funding crisis. Uh so elsewhere
59:45the focus truly is on funding um not
59:47also on reform. Um, currently our cliff
59:50is very much on the horizon. Uh, but if
59:53we're using peers as a barometer, um,
59:55there's clearly going to be steps and
59:57process from the RTA, um, from service
59:59boards as well as from the state, uh,
1:00:01before we find a sustainable resolution.
1:00:05>> Happy to take any questions.
1:00:08>> Yeah, questions.
1:00:10>> Thank you for this analysis is very
1:00:12helpful. I'm just cur I know you went to
1:00:14peer transit agencies. Did you look at
1:00:17any non-p period transit agencies to see
1:00:20if there's any lessons learned like like
1:00:22Dallas? I know is a pretty successful
1:00:24model, maybe Phoenix. Just curious as to
1:00:26whether or not that was reviewed and if
1:00:27there's anything to be gleaned from
1:00:30those analyses.
1:00:31>> Yeah, we did look at peers that were not
1:00:33included here. Um the most kind of
1:00:36optimistic one is probably uh Metro
1:00:38Transit in Minneapolis. Um they're a
1:00:40much smaller system, much smaller region
1:00:42um than Chicago and and incomparable in
1:00:45many ways. Um but they have completely
1:00:48solved uh any sort of a fiscal cliff
1:00:50they were going to experience um with uh
1:00:52sustainable funding moving forward. Uh
1:00:55delivery fee uh which is part of the um
1:00:57Senate bill is actually one of the
1:00:59strategies that was um has been used in
1:01:01in Minneapolis. Um we looked at try in
1:01:04Portland um which has had some positive
1:01:08stuff but also a lot of turmoil at the
1:01:10state level with all transportation
1:01:12modes including roadways and highways
1:01:14and stuff. Um I don't think we've
1:01:16specifically looked at DART, but I know
1:01:18DART has had some disruption with um
1:01:21municipalities opting out of uh being
1:01:24part of the authority. Um and that
1:01:26that's another one we could look at as
1:01:28well. Um generally speaking, for for
1:01:30peer type analysis, we do focus on the
1:01:31legacy systems that are most similar to
1:01:33RTA and the service boards.
1:01:39>> Director Ross, you have a question or
1:01:41comment?
1:01:42>> Uh two questions. First of all, do we
1:01:44know from the systems that raise fairs
1:01:48what the tolerance level is before they
1:01:52see writership decline because of those
1:01:54increases?
1:01:56>> Yeah, we um
1:01:58it's a it's a bit of art and science uh
1:02:01in terms of how far you can raise them.
1:02:02Um we have looked at other systems that
1:02:05have raised fairs recently and there's
1:02:07quite a few in the list that we've
1:02:08included here um that have seen them. I
1:02:11think generally speaking, like the 10%
1:02:13to 12% level, um any sort of gains
1:02:16you're going to achieve in added
1:02:18revenue, you might end up breaking even
1:02:20in lost ridership. Um so a really
1:02:23dramatic and fair increase like things
1:02:24that are being um uh implemented in in
1:02:27by SEPTA in Philadelphia um may have
1:02:30negative impacts on revenue of driving
1:02:32people away by making transit more
1:02:34unaffordable. Um so yeah the I think
1:02:36that 10 to 15 or 12% range um is
1:02:39generally kind of seen as a threshold uh
1:02:42where the impacts might be muted beyond
1:02:44that.
1:02:45>> Okay. And my second question uh from the
1:02:47list of peers that you provided here
1:02:49where do we stand in terms of
1:02:51operational budget ranked against these
1:02:54peers?
1:02:55Are we the largest? Uh MTA is
1:02:59significantly larger than any other
1:03:01operator in the United States and is I
1:03:03mean it's just kind of a almost
1:03:05incomparable in some ways given the size
1:03:07and scope. Um RTA region uh taken as a
1:03:10whole. So when you count all three
1:03:12service boards in the RTA would be the
1:03:14second biggest in the United States. um
1:03:17MBTA and uh SEPTA are kind of similar in
1:03:20that they have comparable modes to the
1:03:22RTA region but significantly smaller um
1:03:25in the total number of hours operated in
1:03:27an annual on an annual basis.
1:03:30>> Thank you.
1:03:30>> Y
1:03:35Coulson or any Dr. Siger
1:03:39>> just a quick question when you're
1:03:40looking at SEPTA um just want to make
1:03:42sure that I'm understanding this. They
1:03:45had a budget which included a 21.5% fair
1:03:49increase in this fiscal year and then
1:03:52they're looking at an additional 21.5%
1:03:55increase next year. So those are on top
1:03:58of each other. Is that correct?
1:04:00>> The increase in the first year um I
1:04:03believe was uh mostly halted by the
1:04:06one-time infusion of uh funding from the
1:04:09state. Um and then they're kind of back
1:04:11at it again with even bigger cuts and
1:04:13bigger increases in this year. Um so
1:04:15it's not additive. That would be a total
1:04:18increase from uh where they started.
1:04:20>> Thank you.
1:04:21>> And Brian, 45%
1:04:24service cuts in Philadelphia. It's
1:04:26unfathomable.
1:04:29>> Absolutely. DQ,
1:04:32thanks so much for the presentation. And
1:04:33I think this there's a lot to learn from
1:04:36here. And a couple themes that I think
1:04:38I'm taking away from peers and how
1:04:40they're they're living through this that
1:04:42may be relevant to us is first is how
1:04:45much there's road funding or funding
1:04:47from automobiles that are helping
1:04:50support the operations of transit. Uh
1:04:52that SEPTA case in particular that you
1:04:54you brought out actually saved them time
1:04:57from a shift uh over to transit
1:05:00temporarily. So they their cliff could
1:05:01have been even sooner. The second is the
1:05:04fair increases that director Ross
1:05:05brought out. I think all of them had
1:05:07done that. The third is the efficiency
1:05:09piece which I have a little question
1:05:11about. Um the the efficiency do you know
1:05:15and my by sort of watching this myself
1:05:18is that these other peers had gotten way
1:05:20ahead of us on broadcasting the
1:05:22efficiencies of what they could do to
1:05:25sort of you know tamp down the pressure
1:05:27of the fiscal cliff. Do you have any
1:05:29idea of like when they had a formal
1:05:31process and how much of that process,
1:05:34what did that process look like? Did
1:05:36they use consultants? You know, I know
1:05:38that SEPTA in particular had a really
1:05:40big long-term sort of efficiency effort.
1:05:43We had Randy Clark here for the RTA
1:05:45event. They talked about their efforts.
1:05:47I think all of those had outside
1:05:49support.
1:05:50>> Yeah, I I can't speak to specifically
1:05:52whether they hired consultants. Um, I
1:05:55would point to two things that I think
1:05:56are are different in how this has played
1:05:58out here. One is historically the
1:06:00service boards are really efficient.
1:06:02Like you you stack up CTA against WA,
1:06:04you know, that would be the more
1:06:06appropriate comparison would just be CTA
1:06:08versus WA and and pretty much on every
1:06:10metric that we've measured for years as
1:06:12part of the subregional reporting. Um,
1:06:14CTA is very efficient. Uh, they they run
1:06:16a really tight ship. Um, some of that is
1:06:19baked into how we're organized and
1:06:21recovery ratio and things like that. Um
1:06:23so everyone's starting at a different
1:06:24point and I think that's a really
1:06:26important uh element of it. And then the
1:06:28other piece is timing. Um all of these
1:06:31agencies that we highlighted here uh are
1:06:33have faced these cliffs have already
1:06:34gone off or are in a much more imminent
1:06:37place than we have been over the last
1:06:39two years. Um and I think that's
1:06:41obviously advanced the efficiencies
1:06:42discussion um as a reflection there. Uh
1:06:45I think this you know kind of where we
1:06:47concluded here is um the cliff is on the
1:06:50horizon. There's a lot of pieces that
1:06:51are going to be part of this and
1:06:53efficiencies will certainly be part of
1:06:54that conversation. Now,
1:06:56>> I think it's certainly something we
1:06:57can't overdo. I think it's really a
1:06:59critical and essential part of the
1:07:01success down in Springfield of
1:07:03broadcasting that um as much as we can
1:07:06perhaps putting some of the work that we
1:07:08have done with the service boards on the
1:07:09new website that Leanne mentioned and
1:07:12really following those savings so that
1:07:14you can you can hold it accountable. uh
1:07:16but also looking at those peers and what
1:07:18that that consultant outside help may
1:07:20have benefited from that we that we
1:07:22haven't done here yet. The the second
1:07:24piece is uh something that the chairman
1:07:27and I talked about is SEPTA and New York
1:07:30both had a really good analysis of how
1:07:33much spend they have across the state
1:07:36and we brought this up in the last board
1:07:38meeting and thank the chairman for his
1:07:39support and us doing that. Have we made
1:07:41progress in us telling that story of how
1:07:44much spend, you know, the billions of
1:07:46dollars that we spend both capital and
1:07:48services for CTA Metropace and us here
1:07:51and what that looks like throughout the
1:07:52state. I think that was a really
1:07:54important story that um SEPTA and and
1:07:57the MTA have been able to tell.
1:08:01>> You speak to that?
1:08:03>> Yes, we've started that analysis and we
1:08:05have like identified already some
1:08:06examples on the spend off the top of my
1:08:08head. I don't have it in front of me.
1:08:09Thank you. Uh Alex got some probably a
1:08:13bit more.
1:08:14>> Hi um members of the board. Yeah, we did
1:08:16pull some of those examples after the
1:08:18chairman um discussed it. Uh for
1:08:22example, Metra has uh purchasing
1:08:24locomotives. Most of the work um is
1:08:27happening in locations like Lraange and
1:08:30Gailsburg. Uh Gallagher Asfeld is
1:08:33providing metro parking lots uh with
1:08:36plants in Joliet and downstate. Um,
1:08:38Global Display Solutions in Rockford is
1:08:41providing LCD screens for Metra. Um, the
1:08:45right-of-way equipment. Um, there are
1:08:49several examples. Uh, Rockford, uh,
1:08:52Pacer Shalt shed in Princeville. Uh, all
1:08:56of these are largely capital investments
1:08:59that the region is seeing from the
1:09:00additional state funding and there are
1:09:02lots of contracts outside of the
1:09:04sixcount region that are benefiting from
1:09:06it. That's one of the things that's on
1:09:08my I have my notes here for the ad hoc
1:09:12committee uh later today and I have I
1:09:14just want to know I'm going to tell each
1:09:16of the three service board chairs want
1:09:19to know your vendors. It's easy just
1:09:21who's got an Illinois zip code and what
1:09:23are you buying from these people in
1:09:25Pinkneyville or Peoria or Murphy'sboro.
1:09:28Uh because that list is is got to be got
1:09:30to be huge.
1:09:31>> That's huge. chairman, I'll just say the
1:09:34concurrence process on the state
1:09:36funding. We we have all of that access
1:09:38because we we have the oversight. Uh we
1:09:41don't have as much access on the federal
1:09:43spending side, but on the state I uh
1:09:46funds from the capital bill. Uh we we do
1:09:48have that analysis and we'll continue to
1:09:50pull more examples for you.
1:09:52>> Yeah. I don't know where PACE for
1:09:54example buys its tires,
1:09:56>> right?
1:09:56>> Where do where do those come from? Um
1:09:59it's ironic on WA um in efficiencies and
1:10:03I'm with director quotarak I want
1:10:05efficiencies as much as anybody. WA
1:10:09started their efficiency study because
1:10:12Virginia and other places were saying
1:10:14how come you can't be as efficient as
1:10:16Chicago? Look at those numbers in
1:10:18Chicago. Look how efficient Chicago is.
1:10:20And historically again we are the most
1:10:23efficient mass transit agency especially
1:10:26when you look at per mile cost uh of any
1:10:30system uh in the country. But I just uh
1:10:33when we had in the folks in from from WA
1:10:37they said yeah one of the one of the
1:10:39reasons we did our study is we had
1:10:41policy makers they were probably
1:10:42legislators saying how come you can't be
1:10:45as efficient as Chicago? Uh and when
1:10:48we're looking at efficiencies and Dr.
1:10:50sagger for New York. Um, we're the
1:10:53second largest system in the country,
1:10:54but my I always extrapolate, they're
1:10:57three times bigger than we are. So,
1:10:59anything I see from New York, um, you
1:11:02know, I sort of divide by a third to to
1:11:04compare it to to us. Uh, and you know,
1:11:08one of the big ones that I look at is I
1:11:11think the the transit union here
1:11:12believes they have 20 times more law
1:11:16enforcement officers assigned to transit
1:11:20than we do. So, you know, I can accept
1:11:23two or three times more, but they have
1:11:25many, many, many, many more law
1:11:27enforcement officials. But I divide by
1:11:29third, a third uh when I look at uh WA
1:11:32or excuse me, when I look at MTA in New
1:11:36York City, Tom,
1:11:38>> one more point for SEPTA that I really
1:11:40liked is you brought this analysis is
1:11:42they did modeling of what these cuts
1:11:44will mean to people's commutes when they
1:11:46drive uh to a really granular level. So
1:11:49the equivalent of if you drive in from
1:11:51Burr Ridge today when this cliff happens
1:11:53your commute is going to be x minutes
1:11:56longer and it wasn't two minutes you
1:11:57know that they've got this by corridor
1:12:00um and so it really brings home it's
1:12:02like oh wait I'm I've got some really
1:12:04personal vested interest in this and I
1:12:05think we could really benefit from doing
1:12:07a similar analysis.
1:12:08>> Yeah, absolutely. I think, you know,
1:12:10everything that we've quantified at this
1:12:12point has been regional scale because
1:12:14that's the level of granularity that
1:12:15we're at, but that's we're in the next
1:12:17moment where I think we need to start
1:12:18explaining what this means in corridors
1:12:20and communities. So,
1:12:22>> but and to get just to build on that
1:12:24point, we we need the details from the
1:12:26service boards as to what their their
1:12:29service level plans
1:12:30>> would be changed to to actually do that
1:12:34very corridor and sub region specific
1:12:37analysis. So that's that's part of the
1:12:39work of the ongoing sort of speeding up
1:12:41some of this budget conversation too is
1:12:44to sort of allow access and and the
1:12:46sharing of that data so that more of
1:12:48that work can happen.
1:12:52>> Director Manduro
1:12:54>> thank you chairman
1:12:55>> wearing his argyle pin.
1:12:57>> I am proudly sporting the argyle pin. It
1:13:00was a great
1:13:02>> see uh Chairman Dillard at the grand
1:13:05reopening of the CTA Argyle station. Um
1:13:08and um my family moved to Chicago in
1:13:111971. We were immigrants from the
1:13:13Philippines. And I've been a regular
1:13:16Redline Argyle rider since 1971.
1:13:19And um and it was amazing to learn that
1:13:22uh that the Argyle station hadn't was
1:13:25first built in 1908.
1:13:27uh and it hadn't been rebuilt in any way
1:13:31until this year 2025. So that a
1:13:34testament to all the hard work of
1:13:36everyone from uh RTA, CTA, uh the the
1:13:40the contractors. I want to give a shout
1:13:42out to Michael Lee, Jacobs Engineering.
1:13:44They were part of the owners rep for
1:13:46that. But um but anyway, uh it it was
1:13:49just really special moment to see that
1:13:50with you, Chairman Dillard. But um uh my
1:13:53comment on uh on Peter your your
1:13:56excellent presentation. I um last week
1:14:00was helping my daughter, my wife and I
1:14:02were helping our daughter moved to
1:14:03Atlanta. Um she's starting medical
1:14:06school, so we're proud parents, but um
1:14:08but everyone that we knew that that
1:14:10lives in Atlanta, the the first thing
1:14:12that they would say is welcome to the
1:14:14traffic. And and it was really striking
1:14:17that for a a metro region that is uh 6
1:14:21million people like smaller than our
1:14:23close to 10 million in the Chicago
1:14:25region uh very few people ride MARTA and
1:14:28and I you know the transit geek that I
1:14:31am as we all do. I I rode MARTA a few
1:14:33times right and the trains were empty
1:14:36and and it was sad that the headways
1:14:38were 20 minutes if that. Right. We we
1:14:41waited once for 40 minutes and it was
1:14:43like near rush hour. And so that's where
1:14:46when if we don't as a body persuade the
1:14:50legislature to adequately fund transit,
1:14:54those headways are going to become crazy
1:14:57and everyone's going to leave transit
1:14:59and and and my fear is that our
1:15:01ridership will become that of what MARTA
1:15:04is, right? So, so excellent work, Peter,
1:15:06in and sharing that, Molly, Leanne, and
1:15:09the whole team. But, but we have to like
1:15:11convince everyone that we're all in this
1:15:13together, that we want to make sure that
1:15:16what I I I had uh dinner with Mimi
1:15:19Rodman, who's on the uh Metro board a
1:15:22few weeks ago, took the Metro out there.
1:15:24The train was packed, you know, getting
1:15:25on at North and Kleborn. The Metro train
1:15:27was packed. My CTA train, it's always
1:15:31packed, right? and and that's a
1:15:33beautiful thing that it's an asset for
1:15:35our community and we have to remind the
1:15:38general public that that's what it's all
1:15:39about. We keep hearing like since I've
1:15:41been on the board from October of 2024,
1:15:44I keep hearing about the excellent work
1:15:46of the three service boards. Uh the the
1:15:49fiscal cliff occurred because of
1:15:51post-pandemic writership changes, but
1:15:54it's still an asset to our Chicagoland
1:15:58community to continue to have that
1:16:00strong public transit in in the service
1:16:03levels that it's at, if not even more
1:16:05robust. And that's why we saw New York
1:16:08uh adequately fund it when they saw the
1:16:10fiscal cliff. I hope and encourage our
1:16:13leaders to continue to do the same.
1:16:16frequency on an exponential basis is
1:16:19just critical. Uh and it helps with
1:16:22everything including security. And you
1:16:24know, we've always showed the reverse
1:16:26side of the fiscal cliff. If we get our
1:16:27billion and a half or a billion six um
1:16:30how much more service we can add uh and
1:16:34exponentially it's it really really
1:16:36really makes a difference. Even if you
1:16:40don't use our system, you'll can get in
1:16:43from Burr Ridge a lot faster on this
1:16:45Davidson.
1:16:49Any other questions, Peter? Um, love
1:16:52always love the comparisons and you
1:16:54know, one of the the beauties of uh and
1:16:56our staff here is very involved as
1:16:59Leanne will take over as the helm of the
1:17:03American Public Transportation
1:17:04Association. But not only do we look at
1:17:07cities in the US, we look at them
1:17:09internationally as well. So, Director
1:17:12Lewis,
1:17:13>> this will be quick. Uh, Peter, um, kind
1:17:15of prompted off what Dennis said. Um, in
1:17:18the analysis, which again, as I said,
1:17:19was excellent. Um, there seemed to be a
1:17:22lot of one-time solutions where the
1:17:23legislators or the elected officials
1:17:26stepped in and provided some support.
1:17:28Was there any key success factor that
1:17:30you identified that got them to act?
1:17:32because I know we've presented
1:17:33information statistics. Um we've known
1:17:36about this cliff coming for many years,
1:17:38but was there anything you identified
1:17:40that was a key success factor in getting
1:17:42those uh legislators or those elected
1:17:46officials to take decisive action to
1:17:48help support transit um in terms of this
1:17:52the solution?
1:17:54>> Yeah, I think that's the million-dollar
1:17:56question right there. Uh I don't know
1:17:58that there's like an obvious answer. I
1:18:00can say, you know, there are um in
1:18:02specific regions, there are some uh
1:18:06high-profile elected leaders that really
1:18:08champion transit. Um Mayor Woo of Boston
1:18:11would be an example who's really stepped
1:18:13up um and pushed for uh MBTA
1:18:16improvements. Um uh in New York, um the
1:18:19governor has, you know, kind of held the
1:18:22line on congestion pricing. Um the state
1:18:24has approved a payroll tax increase. I
1:18:26think that the state of New York really
1:18:28sees the investment that is and what the
1:18:30MTA does for their whole state, their
1:18:32whole region, for people that don't take
1:18:33transit, for people that drive, like it
1:18:35really is the backbone of their economy
1:18:37in many ways. Um, and I I I think that
1:18:40would be kind of the the most important
1:18:42ingredient is leadership um taking on uh
1:18:44the challenge. Um, but it it varies by
1:18:47state. So,
1:18:51>> Dr. Jenkins,
1:18:53>> hi, good morning. Um, as a piggyback to
1:18:56that, are the legislators fully educated
1:18:58as to these comparables?
1:19:02Have it I mean, this was a great
1:19:03presentation and it was very helpful and
1:19:06I'm just wondering if it's something
1:19:07like this has I don't know if it's
1:19:08question for Rob. has this been laid out
1:19:11for them the way you just laid it out to
1:19:12us far as the
1:19:15>> Yeah, I mean Rob can probably speak to
1:19:16specifics, but we'd certainly support
1:19:18the government affairs group and in
1:19:19being a source of information for uh
1:19:22elected leaders and their staff at at
1:19:24the state. Um
1:19:26>> I I'll just add I guess you know last
1:19:29year there was you a yearong of hearings
1:19:32and we and the service boards were
1:19:34basically monthly presenting to the
1:19:37legislative leadership who on the Senate
1:19:39side who were sort of in the front of
1:19:41leading this um providing this and all
1:19:44sorts of other information. Uh,
1:19:46additionally, you know, the series of
1:19:48hearings that Springfield held itself um
1:19:51in the um early in the spring besides
1:19:54just regular being present and available
1:19:56and continuing to have meetings in
1:19:58Springfield. Um all four agencies spent
1:20:01two days in Springfield available with
1:20:04um any legislator who wanted to kind of
1:20:06come in for one-on-one briefings on this
1:20:08and everything. Uh a few of them availed
1:20:11themselves of that opportunity. I think
1:20:13just one thing to note that part of the
1:20:15the challenge that has been in the um
1:20:18and and we've certainly been available
1:20:19and answered any question that any
1:20:21legislator or any leader has answered.
1:20:23We also put this information on our
1:20:25website. We also do week uh not weekly
1:20:27monthly like every other week
1:20:29newsletters uh sort of connecting those
1:20:31to um um our coalition members and
1:20:34anybody who signed up for. So we we're
1:20:36trying all ways to sort of push all this
1:20:38information out. Um, one of I think part
1:20:41of the some of the challenge is we
1:20:43weren't actually nobody from transit was
1:20:45actually at the table in some of the
1:20:47negotiations and the conversations. And
1:20:48I think that's sometimes presents a
1:20:50little bit of um a challenge in sort of
1:20:53some of that back and forth and like
1:20:55answering information real time, giving
1:20:56an example of this over there, that's
1:20:58how that worked, that's how it didn't
1:20:59work. And and that didn't necessarily
1:21:02play out in the in the actual
1:21:03negotiation of information.
1:21:06>> What's the reason for that?
1:21:12I I can't answer that. I I don't I don't
1:21:16mean I We've been available. We've made
1:21:17ourselves available. We continue to make
1:21:19ourselves available. Um and and stand
1:21:22ready to support in any way.
1:21:25>> Yeah. I wish they would, Natasha, I wish
1:21:27they would include more of us in their
1:21:30behind the scenes closed door
1:21:32negotiations. if nothing else. Um, we
1:21:36have the data that they need as policy
1:21:39makers, and I used to be one of those,
1:21:41but we possess the official data. We
1:21:44don't pull stuff out of thin air. We
1:21:47have the official data that I think the
1:21:49legislature and the governor's office
1:21:51and I do need to make informed
1:21:54decisions. And you know, I hope going
1:21:57forward um they uh you know, they would
1:22:00include us in the actual negotiations
1:22:03and discussions because you'll get a
1:22:05much better and more accurate work
1:22:07product.
1:22:08>> Well, I think if if I may, I'd suggest
1:22:10that that's part of that's segueing us
1:22:12into the conversation uh for the next
1:22:14agenda item. So, um we can probably talk
1:22:16a little bit more about that as we get
1:22:18there.
1:22:21>> Thank you, Peter, very much. Thank you.
1:22:23Thank you.
1:22:24All right, Mr. Nash,
1:22:29who hopefully has caught up on his sleep
1:22:31from being trapped in Springfield all
1:22:33those months, although he's got to go
1:22:36back down and fight the battles again.
1:22:37No.
1:22:38>> Item 6C is the discussion on House Bill
1:22:403438 and it's its counterpart uh on the
1:22:44Sustainable Transit for Northern
1:22:46Illinois act. Morning, Rob.
1:22:48>> Good morning. Um,
1:22:52I'm Rob Nastract of Government Affairs.
1:22:54Uh, the Illinois General Assembly
1:22:56adjourned its spring legislative session
1:22:58without taking final action on transit
1:23:00funding or reform, but both chambers did
1:23:02introduce transit legislation. The
1:23:04Senate's proposal contained in House
1:23:06Bill 40 or excuse me, 3438, which is a
1:23:09little confusing, but the Senate action
1:23:11was on a House bill, just to be clear,
1:23:14uh did include more than $1 billion in
1:23:16estimated uh new operating revenue and
1:23:19significant structural changes, and it
1:23:21passed the Senate late on the final end
1:23:22of session, but was not called for a
1:23:24vote in the House. Today, uh, we will
1:23:27recap how the transit system in the
1:23:29state legislature reached this point,
1:23:31identify some key issues regarding the
1:23:33proposed revenue and structural reforms
1:23:35contained in House Bill 3438, and
1:23:38address some potential next steps um, on
1:23:40the horizon. We'll summarize important
1:23:43aspects of the legislation and its
1:23:44potential impact on the transit system
1:23:45and its riders. But this is not intended
1:23:47to be an exhaustive review of the
1:23:49legislation, and we welcome your
1:23:51feedback and questions as we present
1:23:53information. It's important to the no
1:23:55it's important to note that this
1:23:56analysis is the result of a preliminary
1:23:59review of the legislation that was
1:24:00released publicly in the closing days of
1:24:02session. After today's discussion, we
1:24:04will continue to reach out to
1:24:05legislative sponsors, lead advocates,
1:24:07civic groups, and our own coalition
1:24:11of riders to hear their perspectives and
1:24:13how we can work together to produce the
1:24:15best solution for riders and taxpayers.
1:24:17We hope to have an ongoing and very open
1:24:19conversation about the policy changes
1:24:21and the need for transit funding this
1:24:23fall and in potentially into the spring.
1:24:26Next slide, please. We do think it's
1:24:29important to just quickly touch on how
1:24:30we got here. The RTA first estimated the
1:24:33Chicago's region fiscal cliff in the
1:24:35transit is the answer strategic plan
1:24:37which was developed in 2022 and adopted
1:24:40in February of 2023.
1:24:43Later in 2023, CAP affirmed this
1:24:45projection with the adoption of the plan
1:24:46of action for regional transit or part
1:24:49report, which was commissioned by the
1:24:51Illinois General Assembly. The gap is a
1:24:54result of changes in travel patterns
1:24:55during and after the pandemic. As you
1:24:57just heard from PK's presentation, these
1:25:00are similar impacts that have been seen
1:25:02across the country. Fair revenue
1:25:04decreased as fewer riders commuted 5
1:25:06days a week. With transit systems facing
1:25:08cuts, the federal government provided
1:25:09emergency operating assistance to
1:25:11sustain service during and after the
1:25:13pandemic. In 2022, in transit is the
1:25:17answer. The RTA projected that these
1:25:18federal relief funds would run out
1:25:19beginning in 2026.
1:25:21And with the federal government unlikely
1:25:23to provide additional operating funding,
1:25:24the state would have to enable initial
1:25:26additional funding to prevent severe
1:25:29cuts and fair increases.
1:25:31As we also made clear then and do so
1:25:33now, the budget gap is also the result
1:25:35of chronic underfunding of transit
1:25:37operations in metro Chicago. The state
1:25:40covers less than 20% of the systems
1:25:41operating budget while other states
1:25:43cover between 40 and 50%. The state's
1:25:46reimbursement for mandated ADA
1:25:48paratransit service covers about 4% of
1:25:50the total costs of 250 million while the
1:25:53reimbursement for mandated free and
1:25:55reduced fair programs for seniors and
1:25:56people with disabilities cover less than
1:25:5820% of the total cost of 150 million.
1:26:02These relatively small reimbursements
1:26:03force the system to cover most of the
1:26:05cost of these programs out of the
1:26:07general operating budget, limiting the
1:26:09amount of funding available for frequent
1:26:11and reliable mainline services.
1:26:14Since 2014, I do think this is an
1:26:16important bit of context that is not
1:26:18often discussed. State general revenue
1:26:20spending, which includes state spending
1:26:21on education, healthcare, social social
1:26:24services, and transit and transportation
1:26:26among other priorities, has increased by
1:26:28more than $20 billion. But transit
1:26:31funding has not grown at that same pace.
1:26:33In fact, the state has cut funding or
1:26:35imposed additional costs on the system
1:26:38of more than 400 million over this same
1:26:40time period. That is an important bit of
1:26:44context. This forced austerity on the
1:26:46system has been a a challenge that we've
1:26:49had to deal with since 2014 and even
1:26:51earlier. But this is not something that
1:26:54snuck up on us by the pandemic. It it
1:26:56that was the flash point, but we've
1:26:57dealt with constrained revenue, excuse
1:26:59me, a constrained resource environment
1:27:01for quite some time. Next slide, please.
1:27:06In 2024 and 2025, the RTA and the
1:27:08legislature held dozens of meetings,
1:27:10hearings, and events in advance of the
1:27:12fiscal cliff. Some advocates backed a
1:27:14proposal to fully consolidate the
1:27:16transit system and create a unified
1:27:17agency as reflected in the Metropolitan
1:27:20Mobility Authority Act, which was filed
1:27:22in 2024 and reintroduced in 2025.
1:27:26Earlier this year, a coalition of
1:27:27organized labor groups introduced the
1:27:29United We Move bill. And as you know,
1:27:31the RTA released its transforming
1:27:33transit reform proposal and legislative
1:27:35language in the first quarter of last
1:27:37year as well. Both the labor and RTA
1:27:39proposals empowered the RTA with
1:27:41additional authority in key areas like
1:27:43fair setting policy, safety, and capital
1:27:45and service planning. They also
1:27:48maintained the independent service board
1:27:50structure as we have today.
1:27:53This brings us to today's discussion of
1:27:54what was proposed in the closing days of
1:27:56the legislaturator's session. Both the
1:27:58House and Senate bills would reorganize
1:28:00the transit system under a regional
1:28:01authority named the Northern Illinois
1:28:03Transit Authority or NITA. Five new
1:28:06members appointed by the governor would
1:28:07be added to the regional board and the
1:28:09chair would be chosen from among the
1:28:11governor's appointees. Key
1:28:13responsibilities are shifted from CTA,
1:28:15Metra, and PACE to the new regional
1:28:16entity, including fair setting policy
1:28:19and some aspects of service and capital
1:28:21planning to inform decision-m and take
1:28:24on new responsibilities. The legislation
1:28:26also established an estimated 15 new
1:28:28offices with associated staff and
1:28:30advisory bodies um and their associated
1:28:33members. A point of discussion in both
1:28:36chambers was the structure of the
1:28:37supermajority requirement for the new
1:28:39agency to approve key items like the
1:28:41operating budget, capital program, and
1:28:43strategic plan. Under the Senate
1:28:45proposal, approval requires the
1:28:47affirmative vote of at least 15
1:28:49directors or alternatively 12 directors
1:28:51if at least two votes from are from each
1:28:55sub region, meaning the city of Chicago,
1:28:57Suburban Cook, and the Coller counties.
1:29:00Under the House proposal, approval
1:29:02required the same the affirmative vote
1:29:03of at least 12 directors with no
1:29:05geographic requirements. This is an
1:29:07example of an issue that's probably
1:29:09going to be re revisited as the general
1:29:11assembly um works for a for a final
1:29:13proposal. Next slide, please.
1:29:18House Bill 3438 was approved in the
1:29:20Senate on the final day of session and
1:29:22included more than $1 billion in new
1:29:24revenue based on estimates from Senate
1:29:26staff. Just under 900 million would be
1:29:29generated by a climate impact fee of
1:29:31$150 imposed on each retail delivery in
1:29:33the state with an exception for
1:29:35groceries and prescription drugs. 80% of
1:29:38the revenue from this fee would be for
1:29:39transit operations in the RTA region and
1:29:4220% would go to downstate transit. I'm
1:29:45happy to talk about this early, but just
1:29:46a quick note, there's been great
1:29:47coordination between the downstate
1:29:48systems and the and and the RTA region
1:29:50and I think it's actually been a very
1:29:52very productive um working relationship.
1:29:54Um I I will applaud them and the bill
1:29:57treated downstate transit very
1:29:58generously. Um and and that's a good
1:30:01thing. Um but but it kind of is into the
1:30:03context that we've had about, for
1:30:05example, Pennsylvania's experience.
1:30:06There's been, I think, strong
1:30:07coordination between the downstate
1:30:08communities and the RTA region. An
1:30:11additional estimated 150 million would
1:30:14come from a 10% tax on TNC or ride share
1:30:16trips in the region and an estimated 131
1:30:19million would come from a new regional
1:30:21real estate transfer tax. In the
1:30:23proposed legislation, the new TNC fee
1:30:25and the real estate transfer tax are
1:30:27matched by the state at 30%. That's that
1:30:29PTF match column there on the screen.
1:30:32Um, as the RTA uh sales tax is today,
1:30:36but there is no state match for the new
1:30:38delivery fee. Uh, also piggybacking on
1:30:41uh, a quick conversation from the the
1:30:43peer review, the legislation
1:30:45specifically noted the $63 million in
1:30:48efficiencies that this board put forward
1:30:50in working with the service boards and
1:30:52included that sort of in the math um, as
1:30:55they were putting together the revenue
1:30:56package. And then I will tell you in
1:30:58working with um the leadership uh point
1:31:01people on the transit issue in the
1:31:02general assembly, they they they was
1:31:04also a working acknowledgement of a of
1:31:05an approximately $50 million fair
1:31:07increase that again the RTA had put
1:31:09forth in its transforming transit
1:31:11proposal. So those two items, the the
1:31:14113, is that right? I'm an English
1:31:15major. Yeah. Um is sort of included in
1:31:19that mix uh of the of the revenue
1:31:21package. Uh happy to talk about each of
1:31:23those in more detail if we would like.
1:31:25Next slide please.
1:31:29Uh we have noted some potential issues
1:31:31the legislation uh in the legislation
1:31:33that the regional entity will have to
1:31:34address if the reforms are enacted into
1:31:37law as written. Um these I just for for
1:31:40the record uh these brief comments
1:31:43reflect also brief comments we were uh
1:31:46able to make at the one hearing the bill
1:31:48received in Springfield. So we touched
1:31:50on these issues in Springfield. Um while
1:31:52we have a bit more detail um our our
1:31:54core issues uh or or points of note um
1:31:58remain the same from that uh initial
1:32:00conversation in May. Um these are based
1:32:03as I mentioned earlier on our
1:32:05preliminary analysis and we're eager to
1:32:06hear others perspectives on how the
1:32:08legislation would affect the transit
1:32:09system and its riders and we hope to
1:32:11have that conversation as we will talk
1:32:13about um regionwide. Some of these
1:32:15potential issues include operations
1:32:17funding uh could prove to be unstable
1:32:19and delayed in reaching the transit
1:32:20system. We touched on the notion that um
1:32:23now that we're in overtime, things get
1:32:25harder to approve and if we have to wait
1:32:27for um you know later dates of
1:32:29implementation, we also have to deal
1:32:31with the lag in getting the money
1:32:32actually to the RTA once a sale or
1:32:35excuse me once a tax is changed or
1:32:37imposed. There's just some time that it
1:32:39takes to actually flow to the agency and
1:32:40so we'll have to bake that into our
1:32:42timeline. The bill includes several new
1:32:44initiatives that could come with
1:32:45significant costs for the new regional
1:32:47agency which could limit funding
1:32:49available to boost frequencies or
1:32:50coverage of service. The legislation
1:32:53introduces a new operating funding
1:32:54distribution method that is largely
1:32:56fixed for several years. And the
1:32:58recovery ratio requirement and
1:33:00associated financial penalty in included
1:33:03in the legislation is unlikely to be met
1:33:04if reformed as proposed. Next slide,
1:33:08please. We'll walk through each of these
1:33:09in a little bit more detail.
1:33:12As you noted, the revenue package uh
1:33:14relies heavily on the climate impact fee
1:33:16as the bulk of new operating funding.
1:33:18And if that delivery fee is weakened or
1:33:20removed, the package as proposed would
1:33:22not fully address the operating budget
1:33:24gap and could force transit operators to
1:33:26reduce service. It is unclear today what
1:33:28revenue options could replace or
1:33:30supplement the package if any of the
1:33:32current sources are weakened or removed.
1:33:33And while we can't predict the future,
1:33:35um we are concerned about sort of what
1:33:37is plan B. Also, some new revenues may
1:33:40require approval by the current RTA or
1:33:42new NITA board. And the timing of these
1:33:44approvals may have to be amended based
1:33:45on shifting timelines. Again, you know,
1:33:47the the legislation was written with the
1:33:49assumption it would be passed by May
1:33:5131st. And since we are not at that
1:33:53timeline, we'll have to update some
1:33:55items. If the legislature does not
1:33:57enable sufficient sustainable revenue,
1:33:59the new regional entity may struggle to
1:34:00implement reforms and achieve progress
1:34:02on key goals outlined in the legislation
1:34:05uh including such things as frequent
1:34:07reliable service, safety improvements,
1:34:09and service coordination.
1:34:11Next slide, please.
1:34:14Nita takes on many new mandatory
1:34:16responsibilities, some of which come
1:34:17with significant costs like a new
1:34:19regional police force, dial program, and
1:34:22transit ambassador program as well as
1:34:24expanded fair programs. And I just want
1:34:26to note these are critical objectives
1:34:28and common goals hold held by virtually
1:34:31everybody that's participated in these
1:34:33debates and so including us. Yes. And
1:34:36not these are not meant to be u value
1:34:38judgments on on the worthiness of these
1:34:40programs, but we just want to have an
1:34:42open and cleareyed discussion on the
1:34:44costs that some of these programs will
1:34:46um you know impose on the system and
1:34:49just understand that that that all comes
1:34:51out of the same bucket. Um we just kind
1:34:53of want to have that clear uh reset on
1:34:55you know revenues in and costs out you
1:34:58know have to balance in the scenario. Um
1:35:01the scale of these proposals is not
1:35:02clearly defined. So, it's possible their
1:35:04costs could limit overall improvements
1:35:05to mainline service.
1:35:08Our estimates, our estimates show total
1:35:10costs from these new initiatives could
1:35:12range from 390 to $485 million annually.
1:35:16These estimates are based on publicly
1:35:17available data from the service boards
1:35:19and a review of pure systems. If these
1:35:22expenses are paid for out of operations
1:35:24uh budget as proposed in the
1:35:26legislation, this could affect revenue
1:35:27available to deliver more frequent and
1:35:29reliable mainline services across the
1:35:31region which riders frequently identify
1:35:33as their top priority. Um again, we can
1:35:36break uh get into more detail on each of
1:35:38these. One thing of note just uh to
1:35:40mirror sort of the context that we
1:35:43talked about with the efficiencies and
1:35:44the fair increases. Um the legislation
1:35:47also s um directed uh certain resources
1:35:50that the service boards are already
1:35:52dedicating to transit to be shifted to
1:35:55these new potential requirements on the
1:35:57um on uh regional police force. So just
1:36:00again there's some resources that would
1:36:02be moved around but but a lot of that
1:36:04has been accounted for and I I I I just
1:36:06note that because as you see the revenue
1:36:08doesn't add up to $ 1.5 billion but
1:36:10there was a lot of kind of background
1:36:12math that went into that. Again, happy
1:36:14to talk uh in more detail. Uh next
1:36:17slide, please.
1:36:21The new regional entity may have limited
1:36:23authority in the proposed legislation
1:36:25and we do want to spend some time on
1:36:27this issue. For the first three years,
1:36:29operating funding is distributed to
1:36:31operators via formula and then a
1:36:32discretionary distribution is gradually
1:36:34transitioned in transitioned to over the
1:36:36next three years. for the first three
1:36:39years years, NINA, NITA, excuse me, does
1:36:41not control significant discretionary
1:36:42funding, which was one of the key
1:36:44pillars of the reform discussion um
1:36:47instead of h how do we provide the
1:36:49regional entity with some discretion um
1:36:52to help foster innovation and and
1:36:54address service gaps? And we can talk
1:36:56about that in a little bit more detail.
1:36:59The new agency has no clear ability to
1:37:01incentivize operators to advance
1:37:02regional goals by granting additional
1:37:04funds and no clear ability to hold
1:37:06operators accountable by withholding
1:37:08funds. Under the proposed legislation,
1:37:10the regions um the regional agency's
1:37:12authority remains limited to approval of
1:37:14the same three documents that the
1:37:16current RTA approves. The annual budget,
1:37:18the 5-year capital program, and the
1:37:20strategic plan. These documents continue
1:37:22to be approved at the end of the year
1:37:24according to the statutoily required
1:37:25budget calendar. So the agency again
1:37:28would have a limited ability to adjust
1:37:29operating decisions as they are made
1:37:31throughout the year as is the case with
1:37:34the RTA today.
1:37:36So what could this mean for riders? If
1:37:38an operating is not if an operator is
1:37:40not delivering promised service or the
1:37:42regional entity identifies a gap in the
1:37:44network in the middle of the year for
1:37:45example these service issues may persist
1:37:47until they can be addressed as part of
1:37:49the annual budget process. The regional
1:37:51agency has no uh lever for inter to
1:37:53intervene in a timely manner.
1:37:56uh to address key rider issues because
1:37:58much of the authority again is limited
1:38:00to the regional budget passed on an
1:38:01annual basis.
1:38:05Um next slide please.
1:38:10The proposal uh introduces a new funding
1:38:13formula for a six-year transition period
1:38:16uh before shifting to a discretionary
1:38:18service standards model. The new formula
1:38:20is based on the amount of funding CTA,
1:38:22Metro, and PACE were budgeted to receive
1:38:24in 2025. And any remaining funds above
1:38:27that baseline level would be distributed
1:38:29using four factors um from the National
1:38:32Transit Database to measure transit
1:38:33service. Departing from previous complex
1:38:36geographic formulas and heading toward
1:38:38objective criteria has the potential to
1:38:40more equitably distribute resources to
1:38:42transit services across the region. And
1:38:45our proposal also included um shifting
1:38:47funding distribution to a service
1:38:50standards model. However, the
1:38:52legislation's proposed transition to a
1:38:54service standards model could establish
1:38:55funding precedents that may prove
1:38:57difficult to amend in future years. What
1:39:00could this mean for riders? As
1:39:02communities change and services service
1:39:04needs evolve, Nita may struggle to
1:39:06incentivize operators to innovate and
1:39:08improve how service is delivered to
1:39:10riders.
1:39:12Next slide.
1:39:14Next, the proposed uh new recovery ratio
1:39:17requirement and penalty penalty uh may
1:39:20remain restrictive. The legislaturator's
1:39:22inaction this spring means the systems
1:39:24waiver from the existing 50% recovery
1:39:26ratio and its associated financial
1:39:28penalty are currently scheduled to
1:39:30expire at the end of 2025.
1:39:33If this is not addressed, the system
1:39:34will face significant financial
1:39:36penalties in 2026
1:39:38because failure to meet the 50% recovery
1:39:40ratio could mean a loss of approximately
1:39:42$400 million in state funding, which
1:39:45would dramatically worsen the fiscal
1:39:47cliff.
1:39:49If the ratio is reduced to 25% through
1:39:512029 as proposed in the legislation, the
1:39:55requirement may continue to limit an
1:39:56operator's ability to deliver service in
1:39:59an equitable and innovative manner.
1:40:01Based on current projections, the system
1:40:03may not meet the 25% requirement in 26
1:40:06and may be subject to financial
1:40:07penalties.
1:40:09Part of that is because the bill
1:40:10eliminates existing exemption and
1:40:12exemptions and credits in calculating
1:40:14the recovery ratio, which could make
1:40:16meeting the requirement more difficult
1:40:17for the restructured system. Obviously,
1:40:20this will be a point of ongoing
1:40:21conversation of how we could innovate
1:40:23even the the structure of the recovery
1:40:25ratio to maintain accountability, which
1:40:27is key objective, but also ensure that
1:40:29we're not um un you know uh harming
1:40:32access to services. The structure of the
1:40:35recovery ratio remains punitive, taking
1:40:37revenue away from operators if their
1:40:39requirement is not met. Other states and
1:40:42systems do not take this approach.
1:40:43Instead, the recovery ratio is generally
1:40:45one of several performance measures that
1:40:47could be used to encourage efficiency
1:40:49and even unlock additional revenue if
1:40:52met, not cut funding for service that
1:40:55could benefit writers and uh limit
1:40:57innovation.
1:40:59Next slide, please. Can I just add
1:41:01though um the propos because you've been
1:41:03noting where we've had um similar or
1:41:05proposals in our work that we done last
1:41:08year that we had proposed a 20% fair we
1:41:12had proposed not eliminating it but
1:41:13including a carrying forward a 20%
1:41:15fairbox recovery ratio a clean one
1:41:16without all the sort of um takeouts and
1:41:22um finally just some other issues to
1:41:25consider uh the limited bonding
1:41:26authority under the proposed legislation
1:41:29CTA Metro and PACE lose the ability to
1:41:31issue new debt to finance capital
1:41:32improvements and the regional entity's
1:41:34bonding limit remains unchanged at 800
1:41:36million for the need aboard. These
1:41:38changes may constrain the region's
1:41:40ability to invest in transit
1:41:41infrastructure and potentially affect
1:41:43our ability to compete for federal
1:41:44funding. The timeline and process to
1:41:47develop service standards and plans is
1:41:48not linked to the regional budget. Um
1:41:51the process described in the legislation
1:41:52for developing service standards and
1:41:54plans is not linked directly with the
1:41:56annual budget process. And this lengthy
1:41:58new process may limit opportunity to be
1:42:00timely and responsive to community needs
1:42:02and changes. From a writer perspective,
1:42:04making changes to existing routes or
1:42:06launching new routes could be could take
1:42:08more than a year as they are routed
1:42:09through a newly established set of
1:42:11service councils instead of the current
1:42:13locally driven engagement process that
1:42:15can deliver route changes or extensions
1:42:17within just a few months. We'll note
1:42:20that I I do think this is one of those
1:42:21areas we've heard several um
1:42:23stakeholders in this conversation note
1:42:25that there there's some cleanup that
1:42:26needs to be done in the bill and this is
1:42:28one area where you know they're they're
1:42:30less controversial but for example
1:42:32lining up timing between the planning
1:42:34process and the budget process you know
1:42:36it's hard to do a budget before we get
1:42:38certified um estimates of revenue from
1:42:40the state of Illinois and we just have
1:42:41to we have to work on those dates that
1:42:43are a little out of sequence um but but
1:42:46we think you know not controversial to
1:42:48to improve the zero emissions bus
1:42:51mandate could result in less available
1:42:53uh service. This mandate to immediately
1:42:57limit all new bus purchases to zero
1:42:58emissions could lead to fewer buses
1:43:00available for service over the next
1:43:02decade leading to service cuts even if
1:43:04operations uh funding is available to
1:43:06run those services. Again, there are
1:43:10exemptions in the bill and we do think
1:43:11we can work uh in a cooperative manner,
1:43:13but there are simply practical
1:43:14limitations to of accessing uh zero
1:43:17emission buses at this time that have
1:43:19nothing to do with the agencies and much
1:43:21more to do with um supply chain and and
1:43:23availability of the vehicles. Transit
1:43:26supportive development language may be
1:43:28overly broad. The proposal's definition,
1:43:30distance thresholds, and guidelines for
1:43:32transit supported development do not
1:43:34fully align with how the ITA, excuse me,
1:43:36the FTA defines joint development, which
1:43:39could limit the AY's ability to use
1:43:40federal funds to advance key projects.
1:43:43For example, the legislation does not
1:43:44limit joint development opportunities to
1:43:46land owned by the transit agency as the
1:43:48FTA does.
1:43:50Next slide, please.
1:43:54So for next steps, um Governor Pritskar
1:43:58and the legislative leaders uh continue
1:43:59to say they intend to continue uh they
1:44:01they intend to continue to work on
1:44:03transit funding and reform through the
1:44:05summer and into the fall, but a firmed
1:44:06timeline has not been set for any future
1:44:08legislative action. I touched on this uh
1:44:12quickly at the top, but again, it's
1:44:14important to remember that because we're
1:44:15in overtime now, the timelines get very
1:44:17complicated. Um, in order to pass a
1:44:20piece of legislation with an immediate
1:44:22effectiveness, we need a super majority.
1:44:24If we want to go to a simple majority,
1:44:27the bill will not be implemented until
1:44:29June 1st of 2026
1:44:31um or July 1st, depending on when that
1:44:34vote would be taken. But whether it's
1:44:36June or July, it likely means funding to
1:44:39reach the the system will be delayed. So
1:44:41again, that timeline is is a shifting
1:44:44issue. But once we passed May 31st,
1:44:47certain things were unavoidable.
1:44:50As legislators continue their next
1:44:52steps, RTA will continue to advocate for
1:44:54a swift, transparent, and exclusive
1:44:56process that gives the public and key
1:44:58stakeholders the time needed to review
1:44:59major policy changes and provide
1:45:01feedback and input on how it will affect
1:45:02them and their constituents. And I just
1:45:05want to reiterate um the comments that
1:45:06the chairman and and uh Leanne made. We
1:45:09stand ready to participate in this
1:45:11process. We know that there, you know,
1:45:12there are um advocates in the general
1:45:14assembly that are taking, you know, bold
1:45:16reform action. We're all adults in the
1:45:18room and can have that conversation. Um
1:45:21they're it's not uncomfortable for us to
1:45:23have conversations about, you know,
1:45:24significant restructuring. Um and as
1:45:26I've said to members of the General
1:45:28Assembly, um the more light this
1:45:30complicated an issue receives and more
1:45:32discussion it receives in the public
1:45:34realm will produce a better bill. Um and
1:45:37and and that's just not just a you know
1:45:40pertinent to this specific proposal um
1:45:44but any proposals um you know the the
1:45:46the longer conversation and we look
1:45:47forward to having that longer
1:45:48conversation um as we return to work on
1:45:51this issue um will help make a better
1:45:53product. Uh we'll continue to reach out
1:45:56to lawmakers and stakeholders to discuss
1:45:57how the proposed legislation will affect
1:45:59the system and its writers. and we're
1:46:01happy to take any additional feedback or
1:46:03questions on this or anything else um
1:46:05the board may have.
1:46:08>> Super. Thank you, Rob, very much.
1:46:10Director Mando.
1:46:12>> Hi. Thanks, Rob. Um in Peter's
1:46:14presentation earlier, he uh when he was
1:46:17looking at BART, he mentioned that
1:46:19Governor Nim uh issued a $750 million
1:46:22loan to boost Bay Area transit. uh if we
1:46:26are going to be having a fiscal cliff
1:46:30hit uh without the legislature coming up
1:46:32with a permanent solution I is that
1:46:35something possible that the state can do
1:46:37alone assuming that they wanted that
1:46:40they were willing to do that
1:46:45um
1:46:46all things are possible if there's a
1:46:48will right I mean if there if there's
1:46:50particularly for the votes um if the
1:46:52votes are available you can you can do
1:46:54anything I had a professor and mentor
1:46:55once told me um he asked me what what's
1:46:58legal and I didn't know the answer and
1:47:00he said anything that gets a majority of
1:47:02votes. So um it can be adjudicated later
1:47:05but um so where there's a will there's a
1:47:07way um there are some opportunities to
1:47:10flex fundings in a similar fashion can
1:47:13let Lean explain that a little
1:47:14>> flex funding that like in the example
1:47:16talking from the peers that SEPTA did.
1:47:18So they and that's that's a that's
1:47:20something that the the state and ID do
1:47:24could do is flex highway monies over to
1:47:26transit as a a one-time gap. Um these
1:47:29are some of the
1:47:32levers that we can sorry I have to stop
1:47:35and say that word the American way. um
1:47:38that you know we'll actually be
1:47:40discussing kind of getting to some of
1:47:41that in the ad hoc discussion because
1:47:43these are things that could be on the
1:47:45table as either one-time
1:47:47um
1:47:49plugs to get us through 2026
1:47:53for example like even if the state does
1:47:55take action and when when do when do
1:47:58monies I mean that's still unknown and
1:48:00then when do the monies actually flow so
1:48:03we know we have to kind of plan for some
1:48:05of those contingencies but that that I
1:48:07They are all definitely options if um
1:48:10the governor and the legislature chooses
1:48:12to go in that direction.
1:48:16>> We prefer grants not loans.
1:48:22>> Director Gorman.
1:48:23>> Thank you, Chairman. Um maybe this is a
1:48:25question to ask at the ad hoc committee,
1:48:28but um with the um revenue summary, so
1:48:31that that was already passed and then
1:48:32the potential and unstable delayed
1:48:35funding. And I know we did this at the
1:48:37county, but um and they possibly um and
1:48:40I might be answering my own question. Do
1:48:42they do the anticipation bonds when it's
1:48:45passed while they're waiting for the
1:48:47funding to catch up?
1:48:49>> Um
1:48:51>> yeah, we don't have that authority
1:48:53current. We don't have that authority
1:48:54currently to issue that sort of
1:48:55anticipatory. Um so that would be
1:48:57something that would have to be approved
1:48:59by the general assembly. and and in
1:49:01that, you know, circumstance, I would
1:49:03assume it's just as hard to do that as
1:49:04it is just fix the problem. Um, but that
1:49:07could be a temporary step that if the
1:49:09general assembly wanted to go to that
1:49:11direction, they they could. Um, but it
1:49:13would be a new authority that we don't
1:49:14currently have.
1:49:15>> Okay. Thank you.
1:49:17>> The state has that authority. So, that
1:49:19that would could be a bank shot too,
1:49:21right?
1:49:24I I I do want to note now that I said
1:49:26that aloud, the the the the boost in
1:49:28sales tax revenue, as was noted, um is
1:49:31is not a hidden, you know, fact. Um the
1:49:35general assembly is aware of it and and
1:49:36at least in the context of the broader
1:49:38conversations, it was, I think, factored
1:49:40into the to the revenue proposals. Um
1:49:43there's I can't point to, you know, a
1:49:45line item in the bill that that speaks
1:49:47to that. Um but again um the change that
1:49:50was initiated was done on uh uh through
1:49:53the department of revenue and so the
1:49:55state of Illinois has has long been
1:49:57aware of this um you know the the
1:49:59implications of changing the collection
1:50:00method and what new revenue would mean
1:50:02for not just us but other taxing bodies
1:50:04in the state.
1:50:08>> Dr.
1:50:10Thank you chair. Um in the revenue
1:50:13summary we talk about the match from the
1:50:15states relative to the proposed uh
1:50:19revenue line items.
1:50:22I think one of the concerns is always
1:50:24the shortity of that match. Um and so
1:50:29what is the level of comfort that we
1:50:32have that state will in its budgetary
1:50:35efforts be able to match the dollars
1:50:38that might be generated in terms of
1:50:39revenue. Um
1:50:42I mean I I think one of the positive
1:50:44aspects of this entire effort um both
1:50:48with the within the transit agency's um
1:50:50control and then the advocates is that
1:50:52there's been broad support for enhancing
1:50:54the system and you know uh the advocates
1:50:57that you heard from earlier today in
1:50:58large part have been responsible for
1:50:59making that case and making it very
1:51:01well. Um so I don't think the state's
1:51:04looking to retreat. I did not get the
1:51:05sense that that there was any um sort of
1:51:09reconsideration of the traditional PTF
1:51:11match on some of these items and as I
1:51:13noted in fact some of the revenue
1:51:14proposals that were put forward they did
1:51:16include a match on on them. So I I mean
1:51:20I as as far as we can see we believe
1:51:23it's a stable um you know element of of
1:51:26the funding system.
1:51:28>> Thank you. And I do think the state's
1:51:30paying its bills on time. For those of
1:51:33us who have been here for a while, we
1:51:35used to have in Leanne's report all the
1:51:37time. Um,
1:51:40you know, the hundreds of millions that
1:51:42the state owed us and we have to go and
1:51:45borrow at our cost um that money. So,
1:51:49you know, I feel a little more
1:51:50comfortable, you know, that the state is
1:51:53they're not cash flush, but they're
1:51:54paying their bills on time and they've,
1:51:57you know, it's it's a lot better.
1:52:00Director Kerry.
1:52:04>> Um I I think we've said repeatedly um
1:52:09that we support reform. I mean that's a
1:52:12given and we're not uh I'll speak for
1:52:16myself, but I think you know the bulk of
1:52:18us agree on this that we're not against
1:52:21reform at all. And um what I'm concerned
1:52:24about is as mentioned earlier, there was
1:52:26no one from transit at the table. So
1:52:29there are practical issues u many of
1:52:32which you just explained um that can
1:52:36make
1:52:38uh it harder and more difficult to
1:52:40achieve what I think the people that
1:52:43were involved in crafting this bill want
1:52:45to achieve. um and make it harder for
1:52:49whoever uh staffs Nita to actually uh
1:52:53get to where we want to be. So my
1:52:56question is
1:52:58how how are we what's the best way for
1:53:01us to I mean should we draft a formal
1:53:04document and send it off to Springfield?
1:53:07Um
1:53:08uh recapping some of the issues that
1:53:10were just explained. I mean, we we need
1:53:12to make, I think, a strong case that,
1:53:14yeah, you've crafted a bill, you've put
1:53:16some money on the table, you know, we're
1:53:18all in, but there are some issues in the
1:53:21bill that really need to be reworked um
1:53:24from our, you know, professional uh
1:53:28perspective. So, what's the best way to
1:53:30do that?
1:53:32Well, well, first and foremost, I think
1:53:34just this conversation and other
1:53:36endeavors that we're going to um pursue
1:53:39in terms of a public conversation. Um,
1:53:42you know, we do not have a timeline on
1:53:44reconvening the general assembly beyond
1:53:45the set um veto session. Um so we want
1:53:49to try and foster some of the
1:53:50conversation that we would have I think
1:53:52hope uh would have occurred as part of
1:53:54the legislative process a little bit
1:53:55more in the interim period. So, first
1:53:57and foremost, I think it's transparency
1:53:58and public awareness of what um the
1:54:01issues of the bill. And and again, I
1:54:03want to reiterate, we we hope to not
1:54:05have a lot of value judgments, but
1:54:07simply a sober discussion of the
1:54:09proposal and where it might be improved.
1:54:12Um and and to your point, large portions
1:54:15of the bill we we support. Um they they
1:54:17align with how we were crafting um
1:54:20certain elements of of reform as well.
1:54:22Um but that public conversation is
1:54:24critical. Um we are I think looking for
1:54:25some direction from the board here um on
1:54:28how how we should revise or extend these
1:54:31comments on the summary and how to um
1:54:34perhaps share those comments um with
1:54:36legislative leaders on the issue. We we
1:54:38have we have communicated to them um the
1:54:42the concerns that we have um but just
1:54:44directly to them. There hasn't been a
1:54:46public conversation around that.
1:54:47>> Okay. Well, as a member of the board, I
1:54:49would support us drafting. I realize
1:54:52there you spend your life having
1:54:53one-on-one conversations with
1:54:55legislators, but I would appreciate
1:54:58seeing a a document, a paper that says
1:55:01these are, you know, we respectfully
1:55:04appreciate all the work you've done on
1:55:05this, but we have some concerns and some
1:55:09issues that we think need to be
1:55:11reworked. So, I would support um
1:55:14authorizing the staff, I don't know if
1:55:16you need a motion or just consensus to
1:55:18to put a document together and and send
1:55:21it to the legislature. And whether or
1:55:24not
1:55:25I'm not as concerned about putting it
1:55:27out in the public, though, I mean, if we
1:55:28send it, it'll be public, but because
1:55:30some of it gets in the weeds where, you
1:55:33know, the the writers are not going to
1:55:35be as um it's not them that we need to
1:55:38reach with this message right now. it is
1:55:40the legislators and the people that were
1:55:42at the table.
1:55:44>> No, I would agree with that. We need a
1:55:47document and it's something we can
1:55:49probably discuss in the ad hoc committee
1:55:50too, but it's our board. Um, Director
1:55:53Mando.
1:55:54>> Oh, that that's exactly what I was going
1:55:55to suggest, Mr. Chairman, is that uh, as
1:55:58I said in my pre-briefing with Director
1:56:01Redden, um, that this might be an
1:56:04expansion of the charter uh, of the ad
1:56:07hoc committee phase two. Um and and
1:56:10because I think that the ad hoc
1:56:11committee with the participation of the
1:56:13board chairs and and executive staff,
1:56:16it's a great venue to like talk about
1:56:19concerns, we may not get to unanimity of
1:56:23uh thought on every bullet point. Um but
1:56:26for things that like electric buses,
1:56:28let's say that everyone agrees that hey,
1:56:32an a moratorium on buying any bus other
1:56:34than an electric bus is not a good idea
1:56:36at this point. Those are things that we
1:56:39can then come to an agreement that maybe
1:56:41that should be sent uh put reduced to
1:56:44writing and put sent to the legislature
1:56:46>> and we all may be gone but I want Nita
1:56:48to have the teeth to do the things that
1:56:50sometimes we're criticized for because
1:56:53we don't have the power to do it.
1:56:55Director Quarrick,
1:56:56>> thank you chairman and I just want to
1:56:58plus one both all of those comments. I
1:57:00think in the time of crisis, you know,
1:57:02collaboration is one of our biggest
1:57:04assets and I think if uh we should
1:57:07produce a very detailed paper document,
1:57:09but we need to do that together. We need
1:57:12to do that. CTA has a general counsel,
1:57:14PACE has a general counsel, Metra has a
1:57:16general counsel. Have we been able to
1:57:18see their analysis forecast of what the
1:57:21bill does?
1:57:23>> We have not.
1:57:24>> Okay. It's I think that's agenda number
1:57:26one for the working group and the ad hoc
1:57:28working group. I think when we're going
1:57:30to speak to the general assembly, who is
1:57:32clearly in this very large bill, I
1:57:34printed it out double-sided, two pages
1:57:36if anybody wants to see it. Um, I think
1:57:39the the tone is where Dr. Sager started,
1:57:42you know, is really a regional approach
1:57:45and moving up decisions that for a long
1:57:48time I think a lot of us have been
1:57:49frustrated haven't really started at the
1:57:52regional level. I think that's certainly
1:57:53the intent. I think we should respond to
1:57:55that by collecting all of the views uh
1:57:59of what the legislation could do, do
1:58:01better, doesn't do well, presents a
1:58:03threat, and really, you know, present
1:58:06the best thoughts of all of the great
1:58:08minds that we have across all of the
1:58:10service boards. Ju just one note on
1:58:13that. We would just suggest um I kind of
1:58:16alle or alluded to it. Um that the
1:58:20public, you know, our coalition and
1:58:21other stakeholders that we've had sort
1:58:23of periodic conversations with
1:58:24throughout the strategic planning
1:58:25process and the legislative process um
1:58:28we want to get that insight too. Um
1:58:30again, you know, there was there was one
1:58:32hearing in Springfield on this on this
1:58:34proposal before it was acted upon. And
1:58:35so we we want to have um additional
1:58:37conversations uh you know, outside of
1:58:39the agencies, but most definitely with
1:58:41the agencies.
1:58:42>> And then just a technical question on
1:58:44some of the revenues. There's a couple
1:58:45things in here that I think may have
1:58:47been um not noticed. One is bus lane
1:58:50enforcement.
1:58:52And so that it gives the regional the
1:58:54authority, the ability to you got a
1:58:56delivery truck right in a big red
1:58:58painted bus lane that really reduces the
1:59:00quality of the ride, has the ability to
1:59:02issue uh fines and citations and that
1:59:04generates revenue. Do we have some
1:59:06estimates or do we know if the service
1:59:08boards estimated that sort of thing? The
1:59:10and the second piece is there's a whole
1:59:11lot of funding in here dedicated to
1:59:13capital. Do we have some numbers on what
1:59:17those uh revenues and provisions
1:59:19generated? Because I think that 1.2 two
1:59:21number for operations is really
1:59:24important but it's also I think uh
1:59:26important for us to be cognizant of the
1:59:28whole you know sort of nut that the
1:59:30general assembly produced for transit.
1:59:32It's it's big and then stepping back to
1:59:35remember that this was a statewide
1:59:36effort uh that the you know the fees and
1:59:39the revenues here were not exclusive to
1:59:41for the Chicago region. I think
1:59:43presenting those with really accurate
1:59:45forecasts again using all of the service
1:59:47boards brain power and forecasting
1:59:50ability to get the best number we can is
1:59:52to is to put that out so people really
1:59:54understand the general assembly did go
1:59:55in you know pretty heavy for transit.
1:59:59I I wanted to echo the comments. Um the
2:00:01there is capital elements. We focused on
2:00:03the operating funding since we're facing
2:00:04the the fiscal cliff, but there were
2:00:06some capital funding included in the
2:00:07proposal. And to your point about uh
2:00:10allin and sort of a strong commitment,
2:00:12there were significant capital
2:00:14commitments made to downstate systems um
2:00:17and communities uh frankly as part of
2:00:20the the negotiations um to to secure
2:00:24approval in the Senate. And so, um,
2:00:26that, uh, there's no doubt that the
2:00:27general assembly was expansive in its in
2:00:30its revenue push. Um, we're just
2:00:33confronting the issue of the stability
2:00:35of that revenue as as we had this gap
2:00:37now between passage in the Senate and
2:00:39returning to Springfield for for final
2:00:41action.
2:00:42>> Those downstate transit agencies did
2:00:44pretty well. And just to keep things in
2:00:46perspective, um, Champagne Orbana moves
2:00:50more riders and they have a unique
2:00:52system. Obviously, the University of
2:00:54Illinois is there, but Champagne Orbana
2:00:56has more riders than the city of
2:00:59Indianapolis, Indiana. Um, that's the
2:01:03importance of transit to places like uh
2:01:07like Champagne Orbana, Poria,
2:01:09Springfield, Quad Cities, very very
2:01:12robust systems including the Metro East
2:01:14in in St. Louis. So, um, I wish we did
2:01:18as well as the downers, but I understand
2:01:20the political dynamics of making sure
2:01:23they're part of the process.
2:01:25>> They have great leadership and they
2:01:26cooperate very well with us and we are
2:01:28members of the Illinois Public
2:01:30Transportation Association.
2:01:32>> I bet you we're their largest duespayer,
2:01:35too.
2:01:36Um, Director Katar, just to the to close
2:01:39that out, I just for the record, um, the
2:01:43the proposed legislation did um utilize
2:01:46interest on the road fund to dedicate to
2:01:49transit capital, and it's estimated
2:01:51around the 200 to $220 million, I
2:01:53believe. So, I want to know for the
2:01:54record that that is a meaningful
2:01:56commitment to to transit capital. And
2:01:58>> I always remind my road builder friends,
2:02:00our buses ride on roads.
2:02:05And the operating engineers build our
2:02:07bridges
2:02:08>> and tunnels.
2:02:09>> And tunnels, right,
2:02:13Dr. Sager,
2:02:14>> I don't want to supersede Director
2:02:16Lewis. I think he had a comment.
2:02:17>> Sorry.
2:02:20>> I need my peripheral vision needs to be
2:02:22better here.
2:02:24Um I I am very very supportive of of a
2:02:28comprehensive statement I think from
2:02:31this body uh that addresses exactly the
2:02:35types of things that we all collectively
2:02:38know are the imperative aspects of
2:02:42legislation. So I do think that that's
2:02:44very important and I support the
2:02:47comments that made by director
2:02:50as well and I think it leads to what we
2:02:54all recognize is the practicality of
2:02:57getting something passed and that is
2:02:59that we have to be able to tell our
2:03:01story and we have to be able to make our
2:03:04suggestions but we also have to do that
2:03:07being cognizant of and framing it in the
2:03:10reference of what are the primary
2:03:12elements ments of directive, need,
2:03:15priority, concern of the legislature
2:03:18itself because and this effort of
2:03:22supporting the other transit systems is
2:03:25paramount to that, but there are other
2:03:28elements as well. I obviously
2:03:31environmental is a huge aspect of what
2:03:34the legislature and the governor's
2:03:36office is expecting and I believe that
2:03:39we need to be very cognizant of that.
2:03:41The fiscal management and sustainability
2:03:45is a huge issue for us to be looking at.
2:03:48Now, the legislature is saying if we're
2:03:50going to put money in now, we want to
2:03:53make sure that is sustainable. And how
2:03:55is this going to reference to our
2:03:58capacity in the future? We have a
2:04:01concern about uh capital investment.
2:04:04Obviously that's something that is
2:04:07absolutely necessary and we have to
2:04:10build I think that into it helping to
2:04:13understand from the legislative
2:04:15perspective that that is going to be not
2:04:18only sustainable but it's going to be
2:04:20growthw worthy if you will one of the
2:04:23things that I always have thought about
2:04:24that I've been concerned of is the fact
2:04:26that Metra per se
2:04:29I don't think has done a particularly
2:04:31good job I I respect Metra don't me
2:04:34wrong and I I I really believe that they
2:04:37have a good vision, but one of the
2:04:39things I don't think that they've had
2:04:40adequately addressed is that those areas
2:04:43which is to the peripheral of the metro
2:04:46area are the greatest opportunities for
2:04:50transit community growth. That's where
2:04:54it rests. you're going to get more
2:04:56growth in those collar counties that are
2:04:59potential for writership increases and
2:05:03improvements, but we don't get to that.
2:05:05So that the reason I state that is
2:05:07because that to me is a part of the
2:05:11visionary effort that does truly meet an
2:05:16underlying goal of the legislature and
2:05:19that is ultimately sustainability.
2:05:22Nobody in the legislature wants to see
2:05:24this issue continue to come up every 10,
2:05:2715, 20 years. So how do we provide them
2:05:31with a degree of comfort and shity that
2:05:34we are going to uh establish and support
2:05:38a system which is going to be
2:05:40sustainable but sustainable not just in
2:05:42terms of operations but in terms of
2:05:44capital growth as well. So those are the
2:05:47types of things that I think we need to
2:05:49emphasize in our statements.
2:05:51Because to me that's what legislators
2:05:55are looking at and I I've never been in
2:05:57the seat you have chair but we have to
2:06:00hit what they need what they can support
2:06:04to their constituents and so we have to
2:06:06make a package that is going to do that.
2:06:11>> Absolutely. Director Yonan
2:06:14>> Mr. Chairman, can I just interrupt for a
2:06:15second um before Director Yonan um jumps
2:06:18in? Um we have passed the time where we
2:06:21said we had announced publicly where we
2:06:23would likely start the ad hoc committee.
2:06:25So people are tuning in thinking maybe
2:06:27this is the ad hoc committee. So maybe
2:06:29if you just wanted to give a a quick we
2:06:31we could just announce that this is
2:06:33still the continuation of the board and
2:06:37should I make up a time but maybe the ad
2:06:39hoc committee would convene at 11:30.
2:06:42Does that sound suitable?
2:06:44>> Yes. just just for your information as
2:06:47well as those that have tuned in
2:06:48publicly and maybe consu confused by
2:06:51maybe some of the conversation.
2:06:52>> So, we're still in our regular meeting
2:06:54and uh we anticipate the ad hoc
2:06:56committee will begin right around as
2:06:58close as we can to 11:30 if you're
2:07:01tuning in for the ad hoc committee.
2:07:03Thank you. Thanks, L. Good point,
2:07:06>> Director Yon.
2:07:07>> Yep. Thank you, Chairman. Um, again, you
2:07:10know, Director Kerry, I I think that's a
2:07:12great idea of just getting something now
2:07:15in writing um on paper. And what I seem
2:07:19to kind of, you know, hear is that there
2:07:23is, you know, going to be some
2:07:26contention down the road when it comes
2:07:28to looking at some of the revenue
2:07:30packages. Some early conversations have
2:07:32led us to believe that there are going
2:07:34to be some tough times with again our
2:07:36appointing authorities. Um our
2:07:39appointing authorities that have put
2:07:40that confidence in us to be able to um
2:07:43have this discussion and and look at
2:07:46accepting the fact that governance is
2:07:49going to be something we could all come
2:07:50together on and agree to. And I guess I
2:07:54just don't know why we're not talking
2:07:55about some of our electeds also being
2:07:58maybe signitories towards this, right?
2:08:00If we know maybe there's going to be
2:08:01some tough times ahead in some of these
2:08:03conversations, perhaps this is the time
2:08:05to show the unity behind all of this
2:08:08region and are appointing, you know,
2:08:11authorities, those electeds to be also
2:08:13part of this sign off so that that
2:08:16message is sent down to Springfield
2:08:17that, you know, we do agree on on some
2:08:20of these aspects. So I guess again I
2:08:22don't know if perhaps there's a reason
2:08:23to avoid that but I think that's really
2:08:25critical for them to come together and
2:08:27and at least celebrate this aspect of of
2:08:29the governance side of things and make
2:08:31it clear that that's kind of what we're
2:08:32agreeing to. We have to, I believe, kind
2:08:34of peacemeal some of this because they
2:08:36want to hear like everything and and
2:08:38right now it's way too complicated, at
2:08:40least the conversations, you know, I've
2:08:42had to be able to lump all this
2:08:44together. And so we just peacemeal some
2:08:46of this. And and I think that would be
2:08:48really important.
2:08:50>> And actually, just to add, I think sort
2:08:52of a exclamation on on on Director Yon's
2:08:56point, but from a different perspective,
2:08:58too. I think it gets back to maybe some
2:09:00of the the comments that um director
2:09:02Montero were making. The ad hoc
2:09:04committee as we know we're trying to
2:09:06focus that initially on the fiscal cliff
2:09:08and specifically on the budget. Um and I
2:09:11think though the reason why we've done
2:09:13that at the we've suggested that at the
2:09:15staff level is because we almost can't
2:09:17answer some of those questions. uh we
2:09:20have to answer some of those questions
2:09:22first before we can even talk about sort
2:09:23of the the the future and the more
2:09:25detailed some of the complexity on maybe
2:09:27the funding and sort of how the future
2:09:30years of the transit system look. So
2:09:31we're sort of trying to sequence some of
2:09:33the conversations both on purpose
2:09:35because we have a fiscal cliff and a
2:09:36budget that we have to do to meet
2:09:38certain statutory timelines but it does
2:09:40that conversation does influence the
2:09:43broad broader conversation around sort
2:09:44of the legislative next steps and and
2:09:47structure and issues. So just clarifying
2:09:49that too.
2:09:55>> Anything else on this topic other than a
2:09:58reminder that uh Argon National
2:10:00Laboratory thinks that the RTA system
2:10:05and our mass transit system produces $
2:10:0835 billion dollar of economic activity
2:10:11for the state of Illinois and that puts
2:10:14money in the school systems of Peoria
2:10:16and Pinkneyville. So if you are in deep
2:10:19southern Illinois, you have a great
2:10:21interest uh for your public schools and
2:10:24other things uh to have a strong robust
2:10:27mass transit system in Chicago.
2:10:30>> Can So from the staff perspective, could
2:10:32we just ask for some I guess a bit more
2:10:34direction/clarification?
2:10:36Um I heard sort of the consensus on sort
2:10:38of pulling something together. Um also
2:10:41there's I think some recognition that
2:10:43we're not going to answer every
2:10:44question. And there might be a series of
2:10:46sort of pieces that we put together, but
2:10:48is it the the sense of the board that
2:10:49you're looking for us to maybe summarize
2:10:52at least sort of an initial cut of what
2:10:55um
2:10:57sort of versions of the summary that Rob
2:10:59walked through today based on some of
2:11:01the feedback you got, present that to
2:11:03you with an eye on that being
2:11:05distributed to the state to the to our
2:11:08legislative leaders initially and maybe
2:11:10available for further public
2:11:12conversation, etc. Is that the consensus
2:11:14of the board?
2:11:16>> This is my director Lewis.
2:11:18>> Le I think that that is a definite step
2:11:20in the right direction. There's some
2:11:22inherent strengths but some inherent
2:11:24weaknesses in what was proposed and it's
2:11:27the weaknesses that we need to kind of
2:11:29get uh I think teased out so that
2:11:32they're identified clearly and no one
2:11:34can say gosh you should have told me
2:11:36about that. So, for example, a good
2:11:37example is um and it's pointed out by
2:11:40Rob uh we don't have any more authority
2:11:42or this NEITA doesn't have any more
2:11:44authority than the RTA does. We've
2:11:46talked at length about, you know,
2:11:47somebody's be got to be able to
2:11:49absolutely say yes or no to a proposal
2:11:52and have that have enforcement. So yes,
2:11:55a listing uh as I think Pat suggested of
2:11:58those inherent um you know elements that
2:12:01need to be either added to or amended uh
2:12:04would be something I think would be a
2:12:05great a great next step.
2:12:09>> I think that's the the right direction.
2:12:10I'll just add a little bit of more
2:12:12nuance because I think it's worthy of
2:12:14director Yonan's goal sort of the
2:12:15endgame um of having appointing
2:12:18authorities speaking in a collective
2:12:19voice about what's happening in
2:12:21Springfield. But I think the steps to
2:12:23get there is first getting all of that
2:12:25different analysis from the service
2:12:27boards really, you know, having us all
2:12:29have eyes on it as you produce one
2:12:31comprehensive review of the of the
2:12:33legislation and then in those places and
2:12:36particularly director Lewis where you
2:12:38find that there's inadequacy the bonding
2:12:40for example is a really big issue um
2:12:43that we offer solutions you know in that
2:12:45analysis and so that it's not just us
2:12:47pointing a to a problem but offering a
2:12:49solution. I think then that's that base
2:12:51of knowledge from the best minds that we
2:12:53can then go to the appointing
2:12:54authorities and we've done our homework.
2:12:56We've done this collaboratively. Here's
2:12:58where we think the regional message is.
2:13:01I think that that preh homework's got to
2:13:02get done really quick.
2:13:06That's one of the reasons we're going to
2:13:08form that ad hoc committee.
2:13:10>> Rob, thank you very Oh, I'm sorry,
2:13:13Director Jenkins.
2:13:14>> And I think it should be high level.
2:13:15Well, I mean, obviously this document is
2:13:17not going to go over all of the the
2:13:19issues, but if we can just hit micro and
2:13:22many of the things that were discussed
2:13:23today would be great.
2:13:26>> And I think staff will work to identify
2:13:28both the the strengths and the positives
2:13:30within the bill as well as sort of the
2:13:32the the challenges or things that we
2:13:34think need to be f have further
2:13:36conversation or be addressed.
2:13:40>> Super. Thank you. Um, item 7A is the
2:13:44approval of this ad hoc committee we've
2:13:46been speaking about. Uh, I'm
2:13:49recommending the creation of an ad hoc
2:13:51committee on transit funding to provide
2:13:53a place for the board, an agency or
2:13:55service board leadership to align on a
2:13:58strategic direction regarding where
2:14:00we're going on the fiscal cliff. Um
2:14:02because the general assembly did not
2:14:04approve new funding for transit
2:14:06operations to close the fiscal cliff,
2:14:09our boards and the boards of CTA, Metra,
2:14:12and PACE need to make some very
2:14:14difficult decisions uh regarding the
2:14:16region's transit budgets. Um the intent
2:14:19of this committee is going to give us
2:14:21more space uh and more time to have
2:14:25deliberations. The committee's duties
2:14:28and responsibilities will include
2:14:30assessing the current fiscal cliff uh or
2:14:33crisis, identifying potential solutions
2:14:36to the fiscal crisis, recommending
2:14:38courses of action um to mitigate the
2:14:41crisis uh and assuming this uh board
2:14:45will approve this today and I have a
2:14:47list at the beginning of that meeting
2:14:49that u including some of the things that
2:14:51director Kotaric wants um but asking for
2:14:55vendor list and other things. Um, a
2:14:58number of things including now an
2:15:00analysis from each of the three service
2:15:03boards as to what they would suggest
2:15:06recommendations are for the legislation
2:15:09that has passed the Senate. Um,
2:15:13we'll have a a bigger list and and I'm
2:15:15sure we're going to continue to add to
2:15:16it. Um, this ad hoc committee will be
2:15:19live streamed. we are subject to open
2:15:21meetings act requirements and it'll be
2:15:24open to the public for the members of
2:15:26this board. Um you're all welcome to you
2:15:29know this a big room big table you're
2:15:31always welcome to uh you know to attend
2:15:34but the committee will be comprised of
2:15:38two members from the city of Chicago uh
2:15:41suburban cook and the collar counties uh
2:15:44I will serve as the chair I've invited
2:15:46the chairs and I saw um and I thank him
2:15:49for being here um the chairman of the
2:15:51CTA board Lester Barkley is here but the
2:15:54chairs of Pace Metra um and the CTA to
2:15:58be with us at the table. Um, if uh if
2:16:02there's any of the the the directors
2:16:05that I have to formally uh appoint to
2:16:07members of committee and they are from
2:16:09the city of Chicago, Director Mando and
2:16:12Director Ryan, but we know Tom Coterk
2:16:15will be, you know, instrumentally
2:16:17involved as well. Suburban Cook,
2:16:19Director Lewis, and Director Yonan. Um,
2:16:22Liz, wherever you where's Liz Gorman,
2:16:24you know, you are more than welcome. And
2:16:26and Director Lewis, I think, has already
2:16:28informed me that he might not be able to
2:16:31make the second meeting. Liz, please
2:16:33stay and, you know, be active. Uh, and
2:16:36from the Coller counties, Director Kerry
2:16:38and Director um, JD Ross um, but
2:16:41Director Groven, you know, and any of
2:16:43the others, you are pleased. We're Dr.
2:16:46Sager um, you know, really welcome your
2:16:49participation. So that's sort of it.
2:16:52We'll have more layout at the beginning
2:16:54of the ad hoc committee. Um any
2:16:57questions otherwise how about a motion
2:17:00uh in a second to approve the
2:17:02committees? Director Montero moves. Yes.
2:17:05Correct. Question comment.
2:17:07>> Super. Um so Director Montero, Madam
2:17:10Secretary moves seconded by um by
2:17:13Director Gotaric uh that we do create
2:17:16this ad hoc committee. You all have the
2:17:19charter. will go over the charter at the
2:17:21beginning of the meeting. Uh, and the
2:17:23meetings are public, but any anybody
2:17:24who's on this board here um is certainly
2:17:28always welcome in this room. Allison, do
2:17:31you have anything you want to add?
2:17:34>> No, nothing I wanted to add. Just wanted
2:17:35to see if there were any questions. Like
2:17:36you mentioned, I am going to do a short
2:17:38overview of what the committee structure
2:17:40will look like during the ad hoc
2:17:41meeting. So,
2:17:44>> yeah, director Sager. Yes, I I'm
2:17:48certainly going to uh support this. I
2:17:51have no problems with that. Chair, you
2:17:53have the authority basically to
2:17:55recommend ad hoc committees and I
2:17:57appreciate that. I I guess my question
2:17:59is that the ad hoc committee doesn't
2:18:01have any separate authority per se that
2:18:05the ad hoc committee is going to have to
2:18:08bring everything forward to the entirety
2:18:10of this board if specific action is to
2:18:13be taken. And I just want to clarify to
2:18:16make sure that we're all on the same
2:18:17page with that.
2:18:19>> You will have clearly final authority on
2:18:22anything we uh recommend. You know, it's
2:18:25just really to let us do a deeper dive.
2:18:28Uh and then um you know as I said at the
2:18:31beginning when when Audrey was
2:18:33testifying um it'll be interesting and
2:18:35it's great that the chairs of the
2:18:38service boards are going to be part of
2:18:40this discussion uh and we integrate and
2:18:43talk together.
2:18:46>> So I'm going to play a devil's advocate.
2:18:48So I apologize for that. But the the
2:18:50question becomes all of this information
2:18:52is going to be presented to the entirety
2:18:54of the board. the action will be taken
2:18:56by the board, not necessarily the ad hoc
2:18:59committee. Um, all of this information
2:19:03is relevant to what this board is going
2:19:07to be uh trying and attempting to do in
2:19:10terms of its relationship and
2:19:11interaction with the legislature. So,
2:19:14what is the what's the differential
2:19:16point? What is the purpose of the ad hoc
2:19:19committee versus this particular board?
2:19:22I guess that's the underlying question I
2:19:24have. more time, deeper dive involvement
2:19:28of the service boards sitting literally
2:19:31they will be sitting here at the table
2:19:34you know and we long have had a
2:19:36committee structure uh it after co it
2:19:39changed a bit um but it's no different
2:19:41than just having a committee of of the
2:19:44legislature or the Woodstock city
2:19:47government knowing that it all has to
2:19:49come back to the big board and it's all
2:19:51public and you're welcome to you know to
2:19:54day and be involved in every second of
2:19:57the discussion. So, it's just for a
2:20:00deeper dive uh and really the
2:20:03involvement of the service boards as
2:20:05sort of um a you know a a peer as we put
2:20:10together solutions try to figure out
2:20:13what the cliff really is. Uh and it's a
2:20:16way for me to get input from the three
2:20:20service boards chairs and their staff.
2:20:23Although there are corresponding as
2:20:25Leanne has touched on and they're going
2:20:27to have a lot of heavy lifting your
2:20:29staff committee and discussions that
2:20:31that kind of parallel this. Tom,
2:20:33>> I just wanted to note a thing that I'm
2:20:36excited about uh and commend your
2:20:38leadership for setting this up. This is
2:20:40a absolutely historical crisis that
2:20:43we're facing and bringing these issues
2:20:45directly to the other members of the
2:20:47board who have the responsibility
2:20:49individually for their service boards
2:20:52really I think publicly demonstrates how
2:20:55seriously we're taking this. I think it
2:20:57also will have the added benefit of sort
2:20:59of shortcircuiting sometimes the
2:21:01collaboration difficulties that happen
2:21:03solely at the staff level. I think one
2:21:05of the really good examples we just
2:21:06pointed out is the analysis of the
2:21:08legislation. We're probably going to
2:21:10unearth a lot of those that at the board
2:21:12level there's probably no reservation in
2:21:14working together, but sometimes the
2:21:16normal course of action at the staff
2:21:17level gets in the way. And so I think
2:21:19it's really presenting to the general
2:21:21assembly like we're taking ownership
2:21:23over this. This is serious and we're
2:21:25going to do it at the highest level
2:21:26possible.
2:21:29>> I get your comments. Well, once again, I
2:21:32just want to assure you that I'm going
2:21:33to support this. I think this is the
2:21:35right action to be taken, but I do think
2:21:36it's important for have a a bit of
2:21:38discussion up front before uh we vote on
2:21:42this.
2:21:43>> No, absolutely.
2:21:44Good. Thank you very much. As as always,
2:21:48we have a motion and a second um to
2:21:51approve and to establish this ad hoc
2:21:54committee. And with that, Madam
2:21:56Secretary, how about a roll call?
2:21:58>> Dr. Kerry,
2:21:59>> I. Dr. Dr. Coulson,
2:22:00>> yes.
2:22:01>> Dr. Gorman,
2:22:02>> hi.
2:22:03>> Dr. Groven,
2:22:04>> yes.
2:22:04>> Dr. Jenkins,
2:22:05>> hi.
2:22:05>> Dr. Katar,
2:22:06>> hi.
2:22:07>> Lewis,
2:22:07>> yes.
2:22:08>> Dr. Mando,
2:22:09>> yes.
2:22:09>> Dr. Ratando,
2:22:10>> yes.
2:22:11>> Dr. Ross,
2:22:11>> yes.
2:22:12>> Dr. Ryan,
2:22:12>> yes.
2:22:13>> Dr. Sager,
2:22:14>> yes.
2:22:14>> Dr. Walker,
2:22:15>> yes.
2:22:15>> Dr. Yonan,
2:22:16>> hi.
2:22:16>> And Chairman Dillard,
2:22:18>> yes.
2:22:18>> We have 15 eyes.
2:22:19>> All right. And the committee is approved
2:22:21and established. Thank you. Items 7B and
2:22:247 C are the approval of the contract and
2:22:27expenditure items as they appear on the
2:22:28board agenda. Um item B is uh an
2:22:32appointment of the RTA of a new RTA
2:22:35pension trustee. You've all had her
2:22:37resume. She's great. Has also sign aside
2:22:41from being a financial expert um she's,
2:22:44you know, she's from the transit uh uh
2:22:47environment, let's put it that way. and
2:22:507 C is the approval of uh travel
2:22:53expenses as they are presented in the
2:22:55board agenda. Any questions on that?
2:22:59If not, how about a motion to approve 7B
2:23:02and 7C? Director Lewis moves seconded by
2:23:04Director Ratando. And with that, Joey,
2:23:07roll call, please.
2:23:09>> Director Kerry,
2:23:10>> I.
2:23:11>> Director Coulson,
2:23:12>> Dr. Gorman,
2:23:12>> hi.
2:23:13>> Dr. Groven,
2:23:14>> hi.
2:23:14>> Dr. Jenkins,
2:23:15>> hi.
2:23:15>> Dr. Katar,
2:23:16>> hi.
2:23:16>> Dr. Lewis,
2:23:17>> hi.
2:23:18>> Dr. Monado,
2:23:19>> yes.
2:23:19>> Dr. Roando,
2:23:20>> yes.
2:23:20>> Dr. Ross,
2:23:21>> yes.
2:23:21>> Dr. Ryan,
2:23:22>> yes.
2:23:22>> Dr. Sager,
2:23:23>> yes.
2:23:24>> Dr. Walker,
2:23:25>> I.
2:23:25>> Dr. Yonan,
2:23:26>> I.
2:23:27>> Chairman Dillard,
2:23:28>> yes.
2:23:28>> 15 eyes.
2:23:29>> So, items uh B and C um there are
2:23:33approved. Um
2:23:36any new business to come before the
2:23:39board? Um Leanne or Joey, just
2:23:42logistically, what do you think? 11:40.
2:23:46Yeah, if we can maybe like a 15 minute
2:23:48break to get to 11:45. Um, we need to
2:23:52reconfigure this room just a little bit
2:23:54uh for the ad hoc committee and probably
2:23:57some of us need a biological break as I
2:24:01call it. Um, but uh so if there's no
2:24:04further business to come before the
2:24:06board, uh the ad hoc committee will uh
2:24:09meet for the first time at 11:45
2:24:12in about 15 minutes. Our next meeting
2:24:14will be August 21st, 2025 at 9:00 a.m.
2:24:18And if there's no further business to
2:24:19come before the RTA board today, uh, all
2:24:22those in favor of adjourning say I. I.
2:24:25Oppos? Nay. Eyes have it. And we are
2:24:27adjourned.
2:24:28>> I need a motion and a second for
2:24:30adjournment.
2:24:31>> For adjournment. So, Director Mandero
2:24:34moves, second by Director Groven, that
2:24:36we adjourn. With that, all those in
2:24:39favor say I. I. I post.

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