Metra’s leaders approved a budget that spares riders from a fare hike next year, but they acknowledged it won’t be an express train to the hoped-for transformational service expansion.
The commuter rail agency won’t see any service cuts next year, thanks to the $1.5 billion transit bailout passed in Springfield last month. But Metra’s $1.2 billion proposed budget, passed Thursday by the agency’s board of directors, largely keeps the status quo with plans for yet-to-be determined “modest service increases.”
Metra CEO Jim Derwinski said there is still tough work ahead to expand service, even though the agency has overcome an impending deficit when federal COVID-19 funds run out next year.
“The real work is ahead. The last three months have been hard. The next 10 years are going to be hard, too. But they’re going to be hard for a good reason,” Derwinski said. “They’re going to be hard for expansion. Not just sitting back trying to maintain the system that we have, but literally trying to expand it and grow it into a system that we all kind of want.”
Although the agency is receiving nearly $28 million in additional money next year from the transit bill, Metra is losing nearly $20 million by nixing the fare increase. The Regional Transportation Authority had required a fare increase in Metra, CTA and Pace’s budgets. But the RTA recently removed that requirement after pushback from lawmakers pointing to the bill’s prohibition of a fare hike for the first year after the law takes effect June 1, 2026. The CTA approved a budget Wednesday with no fare increase.
Metra is further hamstrung by the transit bill’s limitation on using operational funds for capital construction projects. The agency had planned to use $60 million of those funds in 2026 for projects such as fixing bridges.
Metra plans to use the last $206 million of its pandemic grant money late next year. After that, the agency expects the full force of additional transit bill funds to kick in: $246 million in 2027, and $283 million in 2028.
Metra officials did not get specific about what type of service could be expanded in the near future, unlike CTA’s boss who recently said the agency would add overnight Orange Line service.
Metra’s proposed budget aims to add service to address crowded trains, close two-hour service gaps, implement week-long 30-minute headway pilots on certain lines, and try consistent service on lines including the North Central Service, Southwest Service and Heritage Corridor.
Asked if Metra is in a good position moving forward, CFO John Morris said the new state funding allows the agency to take on increased expenses next year.
“It’s a normal type of budget we have for 2026. And going forward, we have the funding that we projected for 2027, 2028,” he said. “So I would say, ‘Yes, I’m comfortable.’ Obviously, more money, you could do more. But given the realities of the state financial conditions, I think we’re well taken care of.”
Pace passes budget with no fare hike
Pace’s board of directors passed their own budget on Wednesday with no fare increase and an expected $19 million in additional state money from the transit bill.
The agency said it plans to use that money to fund its Rideshare and Taxi access programs, known as RAP and TAP, and to add nearly 10% more suburban bus service.
The budgets of Metra, Pace and CTA now go to the Regional Transportation Authority, which will vote to approve them in December.