Metra proposed a 2025 operating budget of USD 1.135 billion that holds fares steady at current levels and relies on strong sales tax revenues and a dwindling allotment of federal COVID-relief aid to cover the expected growth in expenses. It also proposed a USD 366.4 million capital plan that continues major investment in bridges, stations, and new and rehabilitated rolling stock.
The plans will be the subject of public feedback, including hearings (see schedule below), before the Metra Board of Directors votes in November.
“After the major fare policy and fare purchasing changes that we asked our customers to accept in last year’s budget, our proposal for 2025 could be classified as ‘status quo,’” said Metra Executive Director/CEO Jim Derwinski. “But unless the Legislature solves the fiscal cliff that’s looming in our 2026 budget, we may look back on the 2025 version as the calm before the storm.”
The proposed operating budget includes about USD 65 million in costs associated with a capacity expansion on the Metra Electric Line for the Northern Indiana Commuter Transportation District, which NICTD is covering. Excluding those costs, the budget is about 4.1% higher than the 2024 budget, largely due to expected inflationary, contractual and market increases. It includes additional spending related to new regulations and related training, upgrades to Metra’s Positive Train Control safety system related to heightened cybersecurity risks, and increased costs related to marketing.
The budget is funded by system-generated revenue of USD 304.1 million, including $184.2 million in fares, based on a projection that ridership will grow about 7% in 2025 to 39 million passenger trips. It also is funded by USD 592.5 million in regional sale tax receipts and USD 238.4 million out of Metra’s remaining USD 331.8 million in federal COVID-relief funding.
The COVID-relief funding, approved by Washington to help transit agencies cope with the pandemic-related drop in ridership and fare revenue, is expected to run out in 2026 at Metra, CTA and Pace. Lawmakers in Springfield are aware of the impending problem and have begun to work on potential solutions.
The proposed USD 366.4 million capital program allocated USD 93.8 million to rolling stock; USD 101.8 million to bridges, track, and structures; USD 39.2 million to signal, electrical, and communication; USD 57 million to facilities and equipment; USD 34.9 million to stations and parking; and USD 39.8 million to support activities.
The capital program is funded with USD 242.3 million in federal formula funding, USD 29 million in federal Congestion Mitigation and Air Quality funds, $88.6 million in state PAYGO funds, and USD 6.5 million in RTA Innovation, Coordination and Enhancement (ICE) funds.
Public hearings about the budget will be held throughout the region on Nov. 6 and 7 between 4 p.m. and 6 p.m. The schedule is below. The City of Chicago hearing can also be attended virtually via Microsoft Teams. Instructions for attending the virtual hearing, and for submitting budget comments via mail, email, or voicemail, are also below. A copy of the proposed budget can be found here.
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