Greg Hinz is reporting on his Crain’s Chicago Business blog tonight that the state and CTA have struck a deal for enough additional operating cash to avoid fare hikes. However, the $90 million in service cuts would proceed. From the report:
According to reliable sources, the deal involves the Regional
Transportation Authority issuing bonds for capital projects that would
be funneled to the CTA. That would allow the CTA to shift some federal
capital funds into its cash-short operating budget, thereby avoiding
the necessity to hike fares.
As part of the deal, the state
reportedly would help the CTA pay debt service on the RTA funds for at
least a couple of years. Other monies would go to Pace, which has had
trouble financing its para-transit operation.