RTA proposes reforms to increase efficiency, transparency, and accountability across transit system

RTA is proposing a historic restructuring of the region’s transit governance to maximize the impact of new operating funding and ensure all riders experience an improved, reliable, efficient, integrated transit network. This is the first of a series of three blogs exploring the RTA’s proposed governance reforms. These reforms include increasing efficiencies to cut costs and generate new revenue, as well as increasing transparency and accountability to achieve a fully integrated regional transit system.

On January 15, RTA released Transforming Transit, the agency’s vision for a world-class regional transit system with $1.5 billion in annual operating funding supported by a stronger RTA. While the impending regional operating budget gap is $770 million starting in 2026, independent agencies, including the Chicago Metropolitan Agency for Planning, the region’s designated planning agency for transportation, and advocates agree that $1.5 billion annually is needed from state and local sources to achieve the system riders deserve.

Increased Efficiencies: Cost savings and new revenue

While seeking new funds, the RTA is working with CTA, Metra, and Pace to increase efficiencies and achieve cost savings within current budgets. As we work to reduce costs without cutting service, the RTA is proposing that any new operating funding beyond filling the budget gap can only be used for operations to improve and expand service—not to fund administrative or management positions.

Residents and riders within the RTA region primarily fund transit through fares and sales tax. The State of Illinois contributes a match to the sales tax through the public transportation fund. The State’s contribution is among one of the lowest in the nation among peer states with similar large transit networks, while spending four times more annually on roads and highways compared to transit.

A stronger RTA would play a key role in saving costs through consolidating similar functions. The RTA estimates that placing key systemwide responsibilities within the agency along with common sense areas such as joint purchasing, building maintenance and leasing, and reevaluating vacancies will save $50 million annually. Additionally, a fare increase of 10% would generate $50 million, bringing the agency and rider contribution to partly addressing the cliff to $100 million.

Additional budget savings could be realized if local law enforcement agencies provided more support to transit agencies for rider safety. Operational savings could also be achieved if local and state roadway agencies significantly expanded bus-only lanes and bus-priority infrastructure on key corridors, as speeding up bus service results in reduced service hours and lower operating costs.

Increased Transparency and Accountability: A fully integrated and accountable regional transit system

Rather than distributing key responsibilities across organizations as is done today, the RTA’s proposed reforms would result in one agency—the RTA—being accountable to riders and legislators on the most important systemwide issues: fares, service quality, and capital investment.

State law currently does not empower the RTA to engage proactively in these interrelated areas and doesn’t grant the agency the authority to institute changes and improvements throughout the year. With a strengthened RTA responsible for regularly monitoring key systemwide issues, the region's transit operators can focus exclusively on day-to-day operations, subject to vital input and oversight by local leaders who know their communities best.

And, perhaps most importantly, this will also increase the ability for riders and stakeholders to hold the RTA accountable for the issues that impact riders most: fares, service levels, and capital investment.

With a stronger RTA:

RTA approves regional fare policy for the regional system, manages a unified regional app, and establishes seamless fares and customer services
- Transit operators report quarterly to RTA Board on fare levels and policies
- RTA Board votes to certify compliance or requires changes before granting additional funds

RTA sets regional services standards for fast, reliable service that operators will be measured against
- Transit operators report quarterly to RTA Board on service quality
- RTA Board votes to certify compliance or requires changes before granting additional funds

RTA prioritizes and evaluates major capital projects; distributes funding based on scoring and level of need
- Transit operators report quarterly to RTA Board on capital program
- RTA Board votes to certify compliance or requires changes before granting additional funds

More on how a strengthened RTA can achieve a fully integrated transit system without full consolidation of CTA, Metra, and Pace will be explored in future blog posts.

Join the Transit is the Answer Coalition

While Transforming Transit envisions service improvements with sustainable investment, Illinois policy makers must reach a transit funding solution by spring 2025 to avoid service cuts of up to 40%. The RTA is working with policy makers at all levels of government to develop sustainable funding solutions and improve the system for all riders. Join the Transit is the Answer Coalition to help bring about the legislative changes needed to support transit at this pivotal moment.

This is the first of a series of three blogs exploring the RTA’s proposed governance reforms. Subscribe to the Regional Transit Update newsletter to be notified as the full series is released.