Metra's $1.1 billion proposed budget is 'status quo,' CEO says, despite looming fiscal cliff

Metra holds the line on fares in its proposed $1.1 billion budget for 2025 despite lower-than-projected ridership this year.

The commuter rail agency also doesn't offer a fix for the impending $226 million deficit in 2026 when federal COVID-19 dollars run dry.

Metra CEO Jim Derwinski said in a news release that the proposed budget could be classified as "status quo" compared with the ticket system overhaul of 2024. Last year, Metra reduced the number of fare zones and replaced the 10-ride ticket with a Day Pass 5-pack.

However, the road to profitability will be challenging. Metra plans to use $238 million in COVID-19 relief funds to balance next year's budget. And that comes on top of lower-than-projected ridership. Metra budgeted 40.2 million riders this year but will likely see only 37 million, according to the budget.

Metra plans to use its last $93 million in COVID-19 grants in 2026, when it will be staring at a budget hole that Metra says could grow to $332.5 million in 2027.

That's why Metra and the region's other transit agencies have been prodding state legislators to significantly ramp up transit funding before the "fiscal cliff" in 2026.

Lawmakers are proposing a bill that increases transit spending by $1.5 billion a year, but they are asking in return that transit agencies be consolidated into one organization. The transit agencies' heads have, not surprisingly, resisted that last part.

Derwinski, in his opening message of the proposed budget, said the post-fiscal cliff deficit would be too big to fix itself without state assistance.

"No one wants to imagine a scenario where no solution is found," he wrote. "But if it does happen, we know we can’t cut our way out of such a large budget gap, nor can we solve it with higher fares."

Metra is holding a series of public hearings on its proposed budget on Nov. 6 and 7 throughout the region. More information can be found on Metra.com.