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Downstate Illinois Agencies Grapple with State Funding Impasse; Agencies Close as Funding Remains Unpaid

Many public transit agencies in downstate Illinois are facing the prospect of shutting down or scaling back operations as legally mandated state funding for Fiscal Year 2017 remains unpaid dating to July 1, when the fiscal year started.

The state is required to provide quarterly payments to public transit agencies from its Downstate Transportation Fund. Funding is derived by a portion of the state sales taxes collected in the service areas of each public transportation system, said Laura Calderon, executive director of the Illinois Public Transportation Agency (IPTA). The state currently owes more than $156 million to the fund, according to an IPTA statement.

“Downstate” agencies are those outside of the greater ­Chicago area. Some 56 rural and urban systems receive operating assistance through the fund, she said.

All the downstate agencies combined provided more than 41.5 million rides in FY16, ­Calderon noted. “Downstate particularly, the bulk of the riders are elderly, persons with disabilities and the low-income population who are relying on public transportation to get them to work, medical appointments and other critical services,” Calderon said. “Illinois cannot afford for transit systems to be shut down,” she added.

“Everybody is impacted,” said Karl Gnadt, managing director, Champaign-Urbana Mass Transit District (MTD), “but the scale of that impact is different” from agency to agency.

Connect Transit
Among the agencies affected most severely is Connect Transit in Normal, IL, which will begin temporarily closing its facilities, closing operations and laying off up to 150 employees in January 2017. The state funds represent 65 percent of Connect Transit’s operating budget.

“We are still very hopeful that the state of Illinois will resolve this issue before the end of the year and that any service suspensions will be avoided,” said Andrew Johnson, Connect Transit general manager.

“It continues to be very important that our riders and our community come together and share their stories with state legislators so that they know how vital public transportation is to our community,” said Johnson, who is also president of the IPTA.

Connect Transit’s system includes 15 bus routes in the Bloomington and Normal areas and has an annual ridership of nearly 2.5 million.

Agency officials said they have notified all employees that Dec. 31 will be their final scheduled day of employment if the state funding is still unpaid, but will recall all employees when the state has issued payment and service resumes.

MTD
As for MTD, the state owes the agency $17 million, a figure that increases with every quarter, Gnadt said. His agency is somewhat protected by its funding structure, ability to levy property taxes, partnership with the University of Illinois and school districts and its line of credit with area banks.

“We have other funds and sources of revenue,” he said, “and so we can ‘float’ ourselves a bit longer.” He said he’ll have to consider temporary cost-cutting measures in April or May if the funds remain unpaid.

Gnadt said because MTD is a 24/7 operation, instead of a complete shutdown, they would consider scaling back operations by reducing late night or Sunday service.

“We’re just looking at a longer horizon,” he said. “I’m very hopeful we can resolve this situation.”

MetroLink
At the Rock Island County Metropolitan Mass Transit District (MetroLink) in Moline, General Manager Jeff Nelson said, “Public transit in downstate Illinois is a crucial component that keeps the Illinois economy moving in a positive direction. It is critical the state of Illinois continues to support these systems that provide over 40 million trips annually to commuters, students, young professionals, seniors and those who need access to health care. I am hopeful the state will work quickly to avoid any reduction of the vital public transit service that so many rely on.”

Officials said MetroLink will be able to provide full service through mid-December.

Go West Transit
Ketra Russell, director of Go West Transit in Macomb, said the impasse has had no immediate impact on its service. She explained that partnerships with other entities, including Western Illinois University, have allowed the agency “to float along” for the time being.

She added that the system will examine its federal funding this month before deciding on future actions on Dec. 1. If the state funding situation has not changed by then, she said, Go West Transit might need to “implement bare-bones operation” beginning Jan. 1.

Federal funding is also delayed, Calderon said. “Federal contracts for FY17, administered by the state, have been delayed for more than three months,” she said in an IPTA statement. “As a result, rural transit systems have not been receiving their federal funds either, placing an even bigger financial hardship on these agencies.”

A spokesperson for Illinois Gov. Bruce Rauner referred Passenger Transport to the state comptroller’s office, which did not respond with a comment.
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