Legislative Update

[Busjack]

To get this on a better track, while the free senior citizens' part is a populist ploy to give the governor cover over the tax hike flip flop, as indicated in the ABC7 story to which the reference is made above, it actually may be quite rational. The cost to the state treasury, again according to that story, is about $19 million, compared to the $450 million in new taxes (or the $350 million that would have been diverted under the gas sales tax plan). It is nowhere near the $100 or so million that the type of fares sw was talking about would generate.

Offsetting this is that the state already kicks in $54 million for paratransit (as part of the 2005 deal that turned it over to Pace), and it might result in some seniors thinking that it is a better deal to ride the real bus for free than pay $2-4 for paratransit (whatever it turns out after this all shakes out, and paratransit has to earn a 12% recovery ratio). I'm not predicting big savings, but this, along with other things proposed in the ADA Paratransit Plan might help control the cost.

[trainman8119]

I'm not predicting big savings, but this, along with other things proposed in the ADA Paratransit Plan might help control the cost.

Maybe right, maybe not. But one thing that was a big issue on the ABC7 comment page was 1st the outrage by some in the collar counties who have to pay a tax with little or no service in return. The second and perhaps loudest complaint was from those who claim (and maybe with good reason) the potential for fraud this could cause, with those sticky fingers getting their hands on any fare media that might be devised to validate a senior. Should be interesting to watch. Personally, even though the "local" taxation is probably the idea, I think we all got hosed in the deal. And in the end, no reform, the non transit idiots are still in control (with no accountability for spending) and mark my words in 12-15 months you will start to hear how broke they are again.

I guess that means we'll get stuck with the olympics too..ugh :(

[jajuan]

Maybe right, maybe not. But one thing that was a big issue on the ABC7 comment page was 1st the outrage by some in the collar counties who have to pay a tax with little or no service in return. The second and perhaps loudest complaint was from those who claim (and maybe with good reason) the potential for fraud this could cause, with those sticky fingers getting their hands on any fare media that might be devised to validate a senior. Should be interesting to watch. Personally, even though the "local" taxation is probably the idea, I think we all got hosed in the deal. And in the end, no reform, the non transit idiots are still in control (with no accountability for spending) and mark my words in 12-15 months you will start to hear how broke they are again.

I guess that means we'll get stuck with the olympics too..ugh

One thing that would be good to see is to let go this ridiculous play in old time politics of pitting Chicago against the rest of the state and start working together. I'm tired of the same old game of why should we give Chicago this or what's in it for the city if we do this for the suburbs or downstate. I couldn't stand it when Republicans had the governor's mansion, and I can't stand it now. In the end, we all need each other. One part of the state can't make it without the other. It's time to start doing things from the viewpoint of helping to keep people working in one region helps the state as a whole by bringing tax dollars into the state treasury. It's time to stop trying to overcomplicate solving our issues by trying to solve too many at one time. The sooner we start realizing that the quicker we can start getting things done that will keep this state going strong.

[Busjack]

I would sort of agree with jajuan, except it is necessary to bring democracy back to this state first. If you remember back to 2004, this whole transit mess started with Kruesi saying the problem would be solved if the collar county RTA tax would be raised to 1% and the formula changed so that most of the money went to the CTA, which then supposedly had only a $54 million problem. That got Jeff Ladd of Metra into a knot, and Pace then allied with him. At the same time, there was the report that suburban Cook County was cross subsidizing the collar counties by $100 million a year, and some took that to mean that the CTA was entitled to that money. While it was arguable that Metra was not, because of the later finding that recovery is disproportionately low outside of Zone E, I argued that Pace had a greater entitlement to those funds than CTA. Thus, we must remember that Mayor Daley's minions were calling on taxing the suburbs, without any increase in the city, and nobody from the suburbs voted for the Mayor, at least legally.

At least now Kruesi is gone (although the Mayor took care of him), and the eventual result did not take the form he suggested; Chicago taxpayers are at least on the hook for the pension mess through the real estate transfer tax.

It also took Pace and Metra deficits to finally get them to go along with the RTA raise the taxes program.

As I previously indicated, no one gets roses here. The two persons who were portrayed as jerks before, Hendon and the Governor, come out looking better. I still don't understand the Gov. holding his free senior fares for signing the sales tax hike in his pocket, but it was clear from his last two bailouts that he wasn't going to be the one to take the blame for doomsday. The House made the appearance of carrying the water on the issue, but in the end it was the Senate's version that passed. And I am sure the Gov. has set it up that if his amendatory veto isn't sustained, it would be the House and the bad Madigan (and ultimately his daughter Lisa) who brought on doomsday and don't like senior citizens. That is why I predict that it will be sustained. And if the Republicans are so concerned about being locked out of a capital bill, they should have negotiated one in good faith within 10 days of November 1, as Cross promised.

We sure need constitutional reform. While a constitutional convention could be held in 2010, I wonder if the do gooders that came up with the 1970 Constitution would have forseen how nearly all the politicians in this state, of both parties, would screw it up.

[Busjack]

Pace at least seems to think this is over. From its home page this morning:

The Illinois House of Representatives and Senate passed a comprehensive solution to transit funding that will eliminate the need to raise fares and eliminate service on January 20. However, the price of the ADA Monthly Pass for use on ADA service in Chicago will rise to double the cost of the CTA/Pace 30-Day Pass for fixed route service. This change will be effective beginning with the sale of ADA passes for February.

Pace Board Chairman Richard Kwasneski issued the following statement and thanks Governor Blagojevich and the Illinois General Assembly for passing this legislation.

"We agree with the concept of Governor Blagojevich's amendatory veto to provide free rides on fixed route service to persons over 65 years of age. We hope that the Illinois House and Senate accept the Governor's amendatory veto so that we can turn the page on what has been a long and sometimes difficult legislative battle.

"We're pleased with this solution to mass transit funding because it gives our region the best chance to maintain the existing infrastructure while also providing the ability to enhance and expand service to meet the needs of growing and changing communities.

As I previously mentioned, it looks like ADA fares are going up to meet the recovery ratio requirement.

The messages I noted yesterday on the route description pages aren't there today.

[jajuan]

I would sort of agree with jajuan, except it is necessary to bring democracy back to this state first. If you remember back to 2004, this whole transit mess started with Kruesi saying the problem would be solved if the collar county RTA tax would be raised to 1% and the formula changed so that most of the money went to the CTA, which then supposedly had only a $54 million problem. That got Jeff Ladd of Metra into a knot, and Pace then allied with him. At the same time, there was the report that suburban Cook County was cross subsidizing the collar counties by $100 million a year, and some took that to mean that the CTA was entitled to that money. While it was arguable that Metra was not, because of the later finding that recovery is disproportionately low outside of Zone E, I argued that Pace had a greater entitlement to those funds than CTA. Thus, we must remember that Mayor Daley's minions were calling on taxing the suburbs, without any increase in the city, and nobody from the suburbs voted for the Mayor, at least legally.

At least now Kruesi is gone (although the Mayor took care of him), and the eventual result did not take the form he suggested; Chicago taxpayers are at least on the hook for the pension mess through the real estate transfer tax.

It also took Pace and Metra deficits to finally get them to go along with the RTA raise the taxes program.

As I previously indicated, no one gets roses here. The two persons who were portrayed as jerks before, Hendon and the Governor, come out looking better. I still don't understand the Gov. holding his free senior fares for signing the sales tax hike in his pocket, but it was clear from his last two bailouts that he wasn't going to be the one to take the blame for doomsday. The House made the appearance of carrying the water on the issue, but in the end it was the Senate's version that passed. And I am sure the Gov. has set it up that if his amendatory veto isn't sustained, it would be the House and the bad Madigan (and ultimately his daughter Lisa) who brought on doomsday and don't like senior citizens. That is why I predict that it will be sustained. And if the Republicans are so concerned about being locked out of a capital bill, they should have negotiated one in good faith within 10 days of November 1, as Cross promised.

We sure need constitutional reform. While a constitutional convention could be held in 2010, I wonder if the do gooders that came up with the 1970 Constitution would have forseen how nearly all the politicians in this state, of both parties, would screw it up.

Well that goes without saying. I wrote my previous post late in the evening so didn't word it the way I wanted to. Everything you said are good examples of what I'm talking about and what I had in mind when writing my other post.

[Busjack]

The second and perhaps loudest complaint was from those who claim (and maybe with good reason) the potential for fraud this could cause, with those sticky fingers getting their hands on any fare media that might be devised to validate a senior. Should be interesting to watch.

This reminds me of the Freddie Prinze movie, where one of the scenes was that a woman went to get a senior card, and brought a picture for it that didn't look like her. When asked about it, she said that she didn't want to look like an old lady on the card. That incident actually happened, although I don't know if it was a coincidence that it was used in the movie. Another example that really happened to me that was in the movie (but I am sure the latter was a coincidence) was someone getting on a L train and announcing that he was hijacking it to Wrigley Field.

[Busjack]

If you want an example of bipolar behavior, both of these are currently on the Sun Times website front page:

'Happy ending' for CTA?

Gov stalls mass transit bailout

[BusHunter]

How does this help transit funding? With free rides to all Senior Citizens, that means that the CTA will have to jump fares to at least $4.00 or more just to make up the difference in lost revenue...

To cover lost revenue due to Seniors getting free rides, here's what I think passes will be most likely costing us now if this is approved(I work where we sell CTA passes)

1-Day: $10

2-Day: $18

3-Day: $20

5-Day: $25

7-Day: $30

30-Day: $105

Ladies and Gentlemen, we have a Doomsday for sure now!!!

Countdown: 10 Days

I think the Gov. is purely giving seniors a free ride as a political move. After he has alienated everybody, how would he expect to be reelected. Now the seniors like him. Plus alot of people would look up to him for helping the poor seniors who are on a budget, but if this in turn would cause a fare increase it could bite him in the butt. Also how would a transit agency regulate the free rides. If they had a senior identification card like they do now it would most likely be traded among family and friends. Alot of seniors have brothers and sisters who are within 10 years of 65 years of age. A bus driver cannot sit there and check each card (he'd be there til next week) So if a 62 year old got on the bus with a fraudulent card how could a driver tell their age.

[Busjack]

But, as previously mentioned, the state already pays the half of the fare not paid by the person using the senior citizen pass, so the increased burden of this type of fraud would already be measurable.

Also, as previously indicated, the part you quoted seems only based on anxiety.

[Busjack]

In Moving into the Future, just received:

Pace Factoid:

The bus service Pace had planned to eliminate--80 entire bus routes, and reduced service on another 147--would have amounted to a total reduction of 6,122,946 annual bus miles. That distance is equivalent to circling the planet Earth more than 240 times!

McHenry County politicians probably wonder if Pace has tried the latter.

[Busjack]

Some links if you want to play lawyer:

HB 656, Amend 4: Proposed by Senator Rickey Hendon: Apparently takes the Hamos Bill and engrafts it on something already sitting in the Senate.

HB 656, Amend 5: Adds the public safety use to the sales taxes collected in and paid directly to the collar counties (the point I made to trainman).

As I previously mentioned, I can't comment on what the Governor did until that is posted.

Unchanged from what was in SB572 and the subject of prior comments either here or in the "feedback" topic are the following amendments to the RTA Act:

• 12b: Upon the request of a Service Board, the Executive Director of the Authority may, upon the affirmative vote of 9 of the then Directors of the Authority, intervene in any matter involving ... a dispute between 2 Service Boards with respect to coordination of service, route duplication, or a change in service.
  
• 2.01a(i):If the Authority determines, by the affirmative vote of at least 12 of its then Directors, that, with respect to any proposed new public transportation service or facility, multiple service providers are involved, it may take over the study.
  
• 2.09(c ): The Suburban Bus Division and the Authority shall cooperate in the development, funding, and operation of programs to enhance access to job markets for residents in south suburban Cook County. Beginning in 2008, the Authority shall allocate to the Suburban Bus Division an amount not less than $3,750,000, and beginning in 2009 an amount not less than $7,500,000 annually for the costs of such programs. Thus, for those of you who asked about the South Cook Restructuring, not only does the legislation mandate it, it requires that the RTA spend $11 million in the next 2 years to implement it.
  
• 2.09(b ): Requires implementation of the I-55 BRT project.
  
• 2.01e: Suburban Community Mobility Fund: A setaside for Pace for anything other than traditional fixed bus route service, but including restructuring and BRT. Thus, there is no reason to worry about Pace not getting its share of the money.
  

The bill is a tough read because the first approximately 74 pages are on the CTA Pension plan. The RTA Act amendments start on page 80.

BTW, with regard to subsections, this software wants to turn c into a copyright sign and b into a smiley. Both of those are tough on us in the legal writing business .

[trainman8119]

[*]2.09(c ): The Suburban Bus Division and the Authority shall cooperate in the development, funding, and operation of programs to enhance access to job markets for residents in south suburban Cook County. Beginning in 2008, the Authority shall allocate to the Suburban Bus Division an amount not less than $3,750,000, and beginning in 2009 an amount not less than $7,500,000 annually for the costs of such programs. Thus, for those of you who asked about the South Cook Restructuring, not only does the legislation mandate it, it requires that the RTA spend $11 million in the next 2 years to implement it.

A very interesting clairifcation on all issues. But this part somewhat leaves my head spinning. It is already law that Pace would recieve this from the RTA. However, if the RTA doesn't have the money, and I am saying if, where does it come from. Is this part of the package and is this amount an amout that Pace would not get for other programs.

Also, something else to think about for down the road. Should the Gov get his wish about the ADA freebies, does that mean Pace would in effect lose the $50 million to operate the service, or would in effect, keep that and get a check every month from the state to cover the fares (needless to say, I understand you have not seen the Gov's outline yet...just a question).

[Busjack]

A very interesting clairifcation on all issues. But this part somewhat leaves my head spinning. It is already law that Pace would recieve this from the RTA. However, if the RTA doesn't have the money, and I am saying if, where does it come from. Is this part of the package and is this amount an amout that Pace would not get for other programs.

Also, something else to think about for down the road. Should the Gov get his wish about the ADA freebies, does that mean Pace would in effect lose the $50 million to operate the service, or would in effect, keep that and get a check every month from the state to cover the fares (needless to say, I understand you have not seen the Gov's outline yet...just a question).

1. The RTA is getting $450 million in new tax money if the bill is upheld. You are right that Pace said it would implement the restructuring if it receives new funding, but the bill apparently mandates that the money raised by the RTA under it specifically go into that project. It isn't the current tax stream, which Pace indicated was inadequate to support the restructuring proposal it published on its site. Current law only requires that Pace get 15% of the suburban Cook receipts and 30% of the collar county ones, and doesn't contain this sort of earmark.
   
2. According to the Gov. appearing on TV, the disabled part would be part of the next state budget. Of course, the issue of the $54 million paratransit subsidy would also be part of the next state budget. Also, as you previously asked, the senior part only applies to mainline services, and we would have to see whether the next budget proposal is so limited. It also seems like this was a result of the Tribune saying that the disabled were more deserving than most of the elderly. But maybe this will result in more of the ramps on the buses actually being used.
   

[sw4400]

1. The RTA is getting $450 million in new tax money if the bill is upheld. You are right that Pace said it would implement the restructuring if it receives new funding, but the bill apparently mandates that the money raised by the RTA under it specifically go into that project. It isn't the current tax stream, which Pace indicated was inadequate to support the restructuring proposal it published on its site. Current law only requires that Pace get 15% of the suburban Cook receipts and 30% of the collar county ones, and doesn't contain this sort of earmark.
   
2. According to the Gov. appearing on TV, the disabled part would be part of the next state budget. Of course, the issue of the $54 million paratransit subsidy would also be part of the next state budget. Also, as you previously asked, the senior part only applies to mainline services, and we would have to see whether the next budget proposal is so limited. It also seems like this was a result of the Tribune saying that the disabled were more deserving than most of the elderly. But maybe this will result in more of the ramps on the buses actually being used.
   

As thought, the CTA is considering raising fares in 2009 if the bill is passed allowing senior citizens to ride free to make up the difference in lost revenue. I saw it yesterday in the RedEye. Unfortunately, I couldn't find the link on the webpage, but it was the one with the headline 'Winter Blah Blah Blahs'.

IMO, if the seniors want to ride public transportation, they should have to pay something. And I think $1.00 isn't that much to ask for. If that is, why not just .50 cents? Something anyways!!! Cost of living is rising each and every year, but our salaries and wages aren't to match that.

[trainman8119]

IMO, if the seniors want to ride public transportation, they should have to pay something. And I think $1.00 isn't that much to ask for. If that is, why not just .50 cents? Something anyways!!! Cost of living is rising each and every year, but our salaries and wages aren't to match that.

I agree wholeheartedly. I am tired of having to foot the bill for everyone else to have something for free. For that matter, nothing is ever really free.

[jajuan]

I agree wholeheartedly. I am tired of having to foot the bill for everyone else to have something for free. For that matter, nothing is ever really free.

That I can agree with you about. Even though a transit bill was passed and the buses and trains will keep running on Sunday, I would have pereferred the isue have been brought up for debate sooner rather than at the last minute when everyone thought the crisis was finally resolved after a year's debate. That way at the very least, some income requirement could have been included or some way could have been found to include the disabled. Why give such a blanket 'free lunch' without thinking it through thoroughly which this definitely was not. It sounds good and is an admirable goal, but there are issues and ramifications that have not been fully considered if at all. I'm tired of this game the governor seems to like to play with issues that affect people's lives because he's trying to back political foes into a corner. His 'it's my way or the highway' tactics smack too closely to the President's at times for my tastes and is the worst kind of politics.

[Busjack]

As Boers and Bernstein say at about 5:48 p.m. "It's over...It's over." And for the children on other threads, when I went to the U of C, Milton Friedman said "There is no such thing as a free lunch," but when I worked the cafeteria line at the dorm, he did stop by for free dinners. True.

According to Channel 7 (looks great in HD), the House passed an income test bill, but as is usual, on orders of the Governor, the Senate shelved it. As the Governor said, free rides for seniors is now the law of the state, and knowing how the political dynamic works, that's it.

Similarly, although jajuan asked about how I thought the bill was deficient in the reform area, that is over too, at least until the RTA spends through this money. The legislature spent our good money on the Auditor General's report, but, except for the CTA Pension Fund, took little heed to it.

In the meantime, the House, Senate, and Governor can continue their wrangling over the capital bill, casinos, next year's budget, etc. The mendicants at the U of I Med School already have their hands out, making the same arguments as the transit authorities, according to the Sun-Times.

For that matter, I don't see what the big deal was to go down to Springfield to finally vote on the amendatory veto. Isn't the Legislature supposed to be in regular session now?

[jajuan]

For that matter, I don't see what the big deal was to go down to Springfield to finally vote on the amendatory veto. Isn't the Legislature supposed to be in regular session now?

That's the same thing I was thinking. They're supposed to be in regular session, so why would it be so difficult to get them back to Springfield. Sounded more like adding little more extra drama for the media. Perfect example, my oh so arrogant state senator Rickey "Hollywood" Hendon.

[Busjack]

To make good on my promise to check the final version of the legislation, here is the link to the amendatory veto message.

Basically it says (cutting the legalese):

... any fixed route public transportation services provided by ... the Board shall be provided without charge to all senior citizens of the Metropolitan Region ... aged 65 and older, under such conditions as shall be prescribed by the Board.

Similar provisions were inserted in laws governing the various transit authorities.

Basically, this does leave unanswered whether the state will cover this in the next budget, this is an unfunded mandate, or the tax increases and other contributions made by the state as provided elsewhere in the bill are sufficient to cover it. We'll just have to wait and see.

It also basically says that it is up to CTA, Metra, and Pace to figure out how to implement it.