Fiscal Cliff (and taxes and related stuff)

[Busjack]

11 hours ago, jajuan said:

But what I am surprised by is that they got it done this month. When the news dropped that the overall RTA deficit coming from CTA, Metra and Pace's budgets dropped from $770 million to less $230 million for fiscal 2026, I was virtually certain that it wouldn't be until the regular session in the spring that we got the transit funding crisis behind us.

As reflected earlier, I didn't think it would get done yesterday, between (1) not going over the cliff Jan. 1, 2026, (2) Pace Board saying the reallocation of funds was to give the leislature some breathing   room, and (3) all the lobbying against various taxes and fees. But note the last semtence in the bill:

"This Act takes effect June1, 2026."

Looks like someone will have to borrow or the state road fund will have to advance money before these revenues are received.

 

[jajuan]

1 hour ago, Busjack said:

As reflected earlier, I didn't think it would get done yesterday, between (1) not going over the cliff Jan. 1, 2026, (2) Pace Board saying the reallocation of funds was to give the leislature some breathing   room, and (3) all the lobbying against various taxes and fees. But note the last semtence in the bill:

"This Act takes effect June1, 2026."

Looks like someone will have to borrow or the state road fund will have to advance money before these revenues are received.

 

Yes I noticed the June 1, 2026 effective date also. I thought it was related to reports of CTA, if I remember correctly, being the one among saying they had money to operate until about that time before cuts would have to be made with the other two saying they could last until 2027. I guess that deduction on my part was incorrect. 

[Busjack]

1 hour ago, jajuan said:

Yes I noticed the June 1, 2026 effective date also. I thought it was related to reports of CTA, if I remember correctly, being the one among saying they had money to operate until about that time before cuts would have to be made with the other two saying they could last until 2027. I guess that deduction on my part was incorrect. 

What you said is correct, but my deduction was that the money wasn't gong to start flowing full stream on day 1; there are logistics like revising the Tollway systems, although maybe the road fund takes that hit . Maybe the diversion of the sales tax on motor fuel can occur quicker. To the extent NITA can raise taxes, its board has to be formed first.