"Access to affordable and reliable public transportation is imperative for Chicago-area transit riders," said Governor Quinn. "Today's comprehensive agreement will stabilize public transit and will hold the line against any CTA fare increases for the next two years."
Under the agreement, the RTA will issue bonds for capital projects in 2010 and 2011, allowing federal dollars earmarked for capital projects to be shifted to CTA's operational budget that will help the agency deal with its financial shortfall.
The RTA will issue general obligation bonds to provide the CTA with $83 million in each 2010 and in 2011 for capital projects. The Illinois Department of Transportation will enter into a multi-year agreement with the RTA to cover the cost of debt service for the first two years of the bonds. Any subsequent debt service assistance will be evaluated on an annual basis. In return, the CTA has agreed to cancel proposed fare hikes for 2010 and 2011.
In addition to freezing CTA and paratransit fare increases for the next two years, the State is also in conversations with CTA aimed at decreasing the number of anticipated service reductions, ensuring that riders will continue to have reliable public transportation options.
The State of Illinois will continue to work collaboratively with the agencies to identify long-term solutions.