A new report from the University of Illinois Institute of Government and Public Affairs highlights how transit agencies nationwide, and in Illinois in particular, face significant postpandemic budget gaps, threatening transit service provision and availability. The study focuses on transit ridership and financial data from 2019 to the present, examining the factors contributing to depressed ridership and financial pressures, and also identifies potential policy responses.
The policy spotlight report, “Confronting Transit’s Fiscal Cliff in Illinois,” was written by Richard Funderburg, professor of public management and policy at the College of Public Affairs and Education, University of Illinois Springfield; and Paula Worthington, lecturer, Harris School of Public Policy, University of Chicago and senior policy advisor, Civic Federation. It finds that postpandemic ridership recovery has been limited by factors such as the rise in remote work, concerns about personal safety and security, and uneven service quality.
With fewer riders, agencies that rely heavily on farebox revenues face budget gaps as COVID-era federal resources are depleted. In the past, transit agencies have responded to budget gaps by cutting service, raising fares, deferring capital projects and obtaining additional public support. Service cuts disproportionately affect transit access by disadvantaged individuals and communities, further limiting their access to essential services including health care, employment and education. The policy spotlight report cites evidence that postpandemic restoration of service provision was uneven and slower in many low-income South and West Side neighborhoods of Chicago.
“The COVID-19 pandemic shifted how people interact with public transportation today. Shifting to hybrid work models has played a significant role in Illinois’ public transit budget gap,” Worthington said. “Transit agencies have struggled to adapt to this new normal, as more individuals have the option to work from home.” “In the short term, Illinois faces important decisions to stabilize transit finances amid fiscal challenges,” Funderburg said. “Illinois can raise fares, reduce services based on postpandemic ridership patterns, raise the Regional Transportation Authority sales tax rate, increase state support for paratransit and equity-based fares, increase funds raised from motor vehicles and other transit system users or reallocate capital funds to operating budgets.”
