After months of uncertainty surrounding the future of public transit in the Chicago region, Gov. J.B. Pritzker has signed the Northern Illinois Transit Authority Act into law, laying out a funding plan for transit in northern Illinois.
The bill authorizes a new regional transit board, along with various other revenue streams to bolster public transit funding throughout the region.
Here’s a breakdown of the bill and how it could affect your commute and wallet.
New regional transit authority to oversee CTA, Metra, and Pace
Under the funding plan, signed Tuesday, December 16, Illinois leaders will establish the Northern Illinois Transit Authority (NITA) to oversee the CTA, Metra, and Pace systems, according to a release from the Governor’s office.
The NITA will replace the existing Regional Transit Authority, assuming responsibility for service plans, revenue projects, fare aggregation, and operations management.
The bill also addresses the previous $770 million fiscal cliff that jeopardized transit accessibility across the region earlier this year.
“The Northern Illinois Transit Authority Act is designed to modernize Illinois’ transit systems—from the far northern reaches of our state, to East and West Central Illinois, to Southern Illinois,” said Gov. J.B. Pritzker in a statement.
“We are bolstering operations and upgrading trains, tracks, and buses, and we’re doing it in the most responsible way, with no new statewide taxes…We need to continue pushing forward until Illinois truly has the best transit system in the nation, the one our riders need and deserve.”
How the bill works
The NITA Act will generate $1.5 billion in public transit funds by redirecting several existing state revenue streams. The bill also permits increases on some existing toll and tax rates.
Here’s a breakdown of what to expect, according to the Governor’s office:
- Divert Gas Sales Tax to Transit
- The state will now dedicate a portion of the existing sales tax on gas to transit, raising approximately $860 million annually for transit operations.
- Authorize RTA (prior to its transition into NITA) to Increase Regional Sales Tax by 0.25%
- The state collects sales tax exclusively in the 6-county NITA region, enabling RTA to access $478 million annually for NITA operations.
- Divert Road Fund and State Construction Account Fund (SCAF) Interest to Transit Capital
- Allocate 90% of the interest to Northeastern Illinois, and 10% to downstate, raising approximately $200 million annually for NITA and downstate capital.
- Tollway Revenue Provisions
- The legislation also includes revenue measures supporting a new Tollway capital program.
The biggest takeaway for everyday Chicago residents is that tollway fees may increase under the new legislation, though no specific toll hikes have been announced.
Additionally, Illinoisans who live in the 6-county NITA region will see a small sales tax increase.
For more information on the NITA Act, click here.