Chicago members of the Regional Transportation Authority’s board blocked passage of the agency’s 2002 budget Friday, angered over efforts to stop the Chicago Transit Authority from issuing bonds to fund future transit projects.
The impasse between the city and suburban factions on the board won’t immediately impact service. But officials fear that if the stalemate drags into next year, it could affect funding to the CTA, Metra and Pace, which must submit their budgets to the RTA for approval.
Eleven votes were taken Friday in efforts to resolve the budget controversy, and the balloting split along city-suburban lines each time.
In the end, the suburban RTA board members fell one vote short of the nine needed to approve the almost $2.4 billion RTA budget.
The battle centers on statements by the CTA that the agency is considering issuing $300 million in bonds to fund transit projects.
The RTA, which has its own bonding authority and oversees the CTA’s finances, said the CTA hasn’t proven its case on the need to issue new debt.
RTA officials said the CTA hasn’t documented specific needs for the money and already has $803 million available through the RTA for capital-improvement projects.
CTA Chairman Valerie Jarrett, who is also a RTA board member, warned that “CTA riders will suffer” if the standoff forces the transit agency to postpone the purchase of new buses and trains.
Jarrett, however, acknowledged Friday that current equipment orders are not affected and the CTA’s renovation of the Douglas branch of the Blue Line is moving ahead, in part due to $350 million in bonding pledged by the RTA.
But Donald Totten, the RTA board member appointed by suburban members of the Cook County Board, questioned whether the CTA was “trying to put the RTA out of business” by going it alone with a bond issue. As the parent agency, the RTA has gone to the bond markets on the CTA’s behalf in the past.
RTA Chairman Thomas McCracken Jr. and Jarrett accused each other of holding the budget process hostage.
Jarrett wanted the RTA board to approve a 2002 operating budget, postponing action on the capital-improvements budget until the two sides can agree on the bond issue.
McCracken shot back that it would be irresponsible to pass “half a budget.”
McCracken called a special RTA board meeting for Tuesday in hopes of reaching a compromise.
