Bill Text: IL SB2572 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Metropolitan Transit Authority Act. Provides that if the Board of the Regional Transportation Authority determines that the budget, financial plan, and five-year capital program do not match the Regional Transportation Authority's five-year capital program prioritization list, then the Board of the Metropolitan Transit Authority shall make the changes necessary to meet those requirements. Makes other changes. Amends the Regional Transportation Authority Act. Requires that the Service Boards submit certain reports quarterly (now, annually). Sets forth guidelines concerning a Service Board's strategic plan. Provides that the Regional Transportation Authority may withhold capital project funding or any discretionary funding if a Service Board's strategic plan is excessively inconsistent with the Authority's strategic plan. Provides that the Regional Transportation Authority shall prioritize capital projects based on certain criteria, and that projects listed on the aggregated and prioritized list are the only projects eligible for capital funding, except in the case of an emergency declared by the Governor or the Board. Provides that if the Commuter Rail Board's and the Suburban Bus Board's budget and financial plan do not match the Regional Transportation Authority's five-year capital program prioritization list, then the Commuter Rail Board or Suburban Bus Board, as applicable, shall make the changes necessary to meet those requirements. Sets forth requirements concerning Service Boards' financial reports and budget proposals. Provides that if the Regional Transportation Authority finds that a Service Board violated certain requirements, then the Authority shall withhold specified funding. Sets forth procedures that a Service Board must take to reestablish the funding. Makes other changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB2572 Detail]

Download: Illinois-2011-SB2572-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB2572 Introduced 1/11/2012, by Sen. Susan Garrett SYNOPSIS AS INTRODUCED:
See Index
Amends the Metropolitan Transit Authority Act. Provides that if the Board of the Regional Transportation Authority determines that the budget, financial plan, and five-year capital program do not match the Regional Transportation Authority's five-year capital program prioritization list, then the Board of the Metropolitan Transit Authority shall make the changes necessary to meet those requirements. Makes other changes. Amends the Regional Transportation Authority Act. Requires that the Service Boards submit certain reports quarterly (now, annually). Sets forth guidelines concerning a Service Board's strategic plan. Provides that the Regional Transportation Authority may withhold capital project funding or any discretionary funding if a Service Board's strategic plan is excessively inconsistent with the Authority's strategic plan. Provides that the Regional Transportation Authority shall prioritize capital projects based on certain criteria, and that projects listed on the aggregated and prioritized list are the only projects eligible for capital funding, except in the case of an emergency declared by the Governor or the Board. Provides that if the Commuter Rail Board's and the Suburban Bus Board's budget and financial plan do not match the Regional Transportation Authority's five-year capital program prioritization list, then the Commuter Rail Board or Suburban Bus Board, as applicable, shall make the changes necessary to meet those requirements. Sets forth requirements concerning Service Boards' financial reports and budget proposals. Provides that if the Regional Transportation Authority finds that a Service Board violated certain requirements, then the Authority shall withhold specified funding. Sets forth procedures that a Service Board must take to reestablish the funding. Makes other changes.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Metropolitan Transit Authority Act is
amended by changing Section 34 as follows:
(70 ILCS 3605/34) (from Ch. 111 2/3, par. 334)
Sec. 34. Budget and Program. The Authority, subject to the
powers of the Regional Transportation Authority in Section 4.11
of the Regional Transportation Authority Act, shall control the
finances of the Authority. It shall by ordinance appropriate
money to perform the Authority's purposes and provide for
payment of debts and expenses of the Authority. Each year the
Authority shall prepare and publish a comprehensive annual
budget and five-year capital program document, and a financial
plan for the 2 years thereafter describing the state of the
Authority and presenting for the forthcoming fiscal year and
the two following years the Authority's plans for such
operations and capital expenditures as it intends to undertake
and the means by which it intends to finance them. The proposed
budget, financial plan, and five-year capital program shall be
based on the Regional Transportation Authority's estimate of
funds to be made available to the Authority by or through the
Regional Transportation Authority and shall conform in all

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respects to the requirements established by the Regional
Transportation Authority. The proposed budget, financial plan,
and five-year capital program shall contain a statement of the
funds estimated to be on hand at the beginning of the fiscal
year, the funds estimated to be received from all sources for
such year and the funds estimated to be on hand at the end of
such year. The proposed budget, financial plan, and five-year
capital program shall be available at no cost for public
inspection at the Authority's main office and at the Regional
Transportation Authority's main office at least 3 weeks prior
to any public hearing. Before the proposed budget, financial
plan, and five-year capital program are submitted to the
Regional Transportation Authority, the Authority shall hold at
least one public hearing thereon in each of the counties in
which the Authority provides service. All Board members of the
Authority shall attend a majority of the public hearings unless
reasonable cause is given for their absence. After the public
hearings, the Board of the Authority shall hold at least one
meeting for consideration of the proposed program and budget
with the Cook County Board. After conducting such hearings and
holding such meetings and after making such changes in the
proposed budget, financial plan, and five-year capital program
as the Board deems appropriate, it shall adopt an annual budget
ordinance at least by November 15th preceding the beginning of
each fiscal year. The budget, financial plan, and five-year
capital program shall then be submitted to the Regional

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Transportation Authority as provided in Section 4.11 of the
Regional Transportation Authority Act. In the event that the
Board of the Regional Transportation Authority determines that
the budget, financial plan, and five-year capital program do
not meet the standards of said Section 4.11 or match the
Regional Transportation Authority's five-year capital program
prioritization list set forth in Section 2.01b of the Regional
Transportation Authority Act, the Board of the Authority shall
make such changes as are necessary to meet such requirements
and adopt an amended budget ordinance. The amended budget
ordinance shall be resubmitted to the Regional Transportation
Authority pursuant to said Section 4.11. The ordinance shall
appropriate such sums of money as are deemed necessary to
defray all necessary expenses and obligations of the Authority,
specifying purposes and the objects or programs for which
appropriations are made and the amount appropriated for each
object or program. Additional appropriations, transfers
between items and other changes in such ordinance which do not
alter the basis upon which the balanced budget determination
was made by the Regional Transportation Authority may be made
from time to time by the Board.
The budget shall:
(i) show a balance between (A) anticipated revenues
from all sources including operating subsidies and (B) the
costs of providing the services specified and of funding
any operating deficits or encumbrances incurred in prior

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periods, including provision for payment when due of
principal and interest on outstanding indebtedness;
(ii) show cash balances including the proceeds of any
anticipated cash flow borrowing sufficient to pay with
reasonable promptness all costs and expenses as incurred;
(iii) provide for a level of fares or charges and
operating or administrative costs for the public
transportation provided by or subject to the jurisdiction
of the Board sufficient to allow the Board to meet its
required system generated revenue recovery ratio as
determined in accordance with subsection (a) of Section
4.11 of the Regional Transportation Authority Act;
(iv) be based upon and employ assumptions and
projections which are reasonable and prudent;
(v) have been prepared in accordance with sound
financial practices as determined by the Board of the
Regional Transportation Authority;
(vi) meet such other financial, budgetary, or fiscal
requirements that the Board of the Regional Transportation
Authority may by rule or regulation establish; and
(vii) be consistent with the goals and objectives
adopted by the Regional Transportation Authority in the
Strategic Plan set forth in Section 2.01a of the Regional
Transportation Authority Act.
The Board shall establish a fiscal operating year. At least
thirty days prior to the beginning of the first full fiscal

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year after the creation of the Authority, and annually
thereafter, the Board shall cause to be prepared a tentative
budget which shall include all operation and maintenance
expense for the ensuing fiscal year. The tentative budget shall
be considered by the Board and, subject to any revision and
amendments as may be determined, shall be adopted prior to the
first day of the ensuing fiscal year as the budget for that
year. No expenditures for operations and maintenance in excess
of the budget shall be made during any fiscal year except by
the affirmative vote of at least five members of the Board. It
shall not be necessary to include in the annual budget any
statement of necessary expenditures for pensions or retirement
annuities, or for interest or principal payments on bonds or
certificates, or for capital outlays, but it shall be the duty
of the Board to make provision for payment of same from
appropriate funds. The Board may not alter its fiscal year
without the prior approval of the Board of the Regional
Transportation Authority.
(Source: P.A. 95-708, eff. 1-18-08.)
Section 10. The Regional Transportation Authority Act is
amended by changing Sections 2.01a, 2.01b, 3A.10, 3B.10, 4.01,
and 4.11 as follows:
(70 ILCS 3615/2.01a)
Sec. 2.01a. Strategic Plan.

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(a) By the affirmative vote of at least 12 of its then
Directors, the Authority shall adopt a Strategic Plan, no less
than every 5 years, after consultation with the Service Boards
and after holding a minimum of 3 public hearings in Cook County
and one public hearing in each of the other counties in the
region. The Executive Director of the Authority shall review
the Strategic Plan on an ongoing basis and make recommendations
to the Board of the Authority with respect to any update or
amendment of the Strategic Plan. The Strategic Plan shall
describe the specific actions to be taken by the Authority and
the Service Boards to provide adequate, efficient, and
coordinated public transportation.
(b) The Strategic Plan shall identify goals and objectives
with respect to:
(i) increasing ridership and passenger miles on public
transportation funded by the Authority;
(ii) coordination of public transportation services
and the investment in public transportation facilities to
enhance the integration of public transportation
throughout the metropolitan region;
(iii) coordination of fare and transfer policies to
promote transfers by riders among Service Boards,
transportation agencies, and public transportation modes,
which may include goals and objectives for development of a
universal fare instrument that riders may use
interchangeably on all public transportation funded by the

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Authority, and methods to be used to allocate revenues from
transfers;
(iv) improvements in public transportation facilities
to bring those facilities into a state of good repair,
enhancements that attract ridership and improve customer
service, and expansions needed to serve areas with
sufficient demand for public transportation;
(v) access for transit-dependent populations,
including access by low-income communities to places of
employment, utilizing analyses provided by the Chicago
Metropolitan Agency for Planning regarding employment and
transportation availability, and giving consideration to
the location of employment centers in each county and the
availability of public transportation at off-peak hours
and on weekends;
(vi) the financial viability of the public
transportation system, including both operating and
capital programs;
(vii) limiting road congestion within the metropolitan
region and enhancing transit options to improve mobility;
and
(viii) such other goals and objectives that advance the
policy of the State to provide adequate, efficient, and
coordinated public transportation in the metropolitan
region.
(c) The Strategic Plan shall establish the process and

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criteria by which proposals for capital improvements by a
Service Board or a transportation agency will be evaluated and
prioritized pursuant to Section 2.01b of this Act by the
Authority for inclusion in the Five-Year Capital Program, which
may include criteria for:
(i) allocating funds among maintenance, enhancement,
and expansion improvements;
(ii) projects to be funded from the Innovation,
Coordination, and Enhancement Fund;
(iii) projects intended to improve or enhance
ridership or customer service;
(iv) design and location of station or transit
improvements intended to promote transfers, increase
ridership, and support transit-oriented land development;
(v) assessing the impact of projects on the ability to
operate and maintain the existing transit system; and
(vi) other criteria that advance the goals and
objectives of the Strategic Plan.
(d) The Strategic Plan shall establish performance
standards and measurements regarding the adequacy, efficiency,
and coordination of public transportation services in the
region and the implementation of the goals and objectives in
the Strategic Plan. At a minimum, such standards and measures
shall include customer-related performance data measured by
line, route, or sub-region, as determined by the Authority, on
the following:

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(i) travel times and on-time performance;
(ii) ridership data;
(iii) equipment failure rates;
(iv) employee and customer safety; and
(v) customer satisfaction.
The Service Boards and transportation agencies that
receive funding from the Authority or Service Boards shall
prepare, publish, and submit to the Authority such reports with
regard to these standards and measurements in the frequency and
form required by the Authority; however, the frequency of such
reporting shall be quarterly and due on March 1st, June 1st,
September 1st, and December 1st no less than annual. The
Service Boards shall publish such reports on their respective
websites. The Authority shall compile and publish such reports
on its website. Such performance standards and measures shall
not be used as the basis for disciplinary action against any
employee of the Authority or Service Boards, except to the
extent the employment and disciplinary practices of the
Authority or Service Board provide for such action.
(d-5) It is the responsibility of the Service Boards to
work in good faith with the Authority to submit strategic plans
that conform to and are consistent with the Authority's
strategic plan. The Authority may withhold capital project
funding pursuant to Section 4.11 of this Act or any
discretionary funding if a Service Board's strategic plan is
excessively inconsistent with the Authority's strategic plan.

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(e) The Strategic Plan shall identify innovations to
improve the delivery of public transportation and the
construction of public transportation facilities.
(f) The Strategic Plan shall describe the expected
financial condition of public transportation in the
metropolitan region prospectively over a 10-year period, which
may include information about the cash position and all known
obligations of the Authority and the Service Boards including
operating expenditures, debt service, contributions for
payment of pension and other post-employment benefits, the
expected revenues from fares, tax receipts, grants from the
federal, State, and local governments for operating and capital
purposes and issuance of debt, the availability of working
capital, and the resources needed to achieve the goals and
objectives described in the Strategic Plan.
(g) In developing the Strategic Plan, the Authority shall
rely on such demographic and other data, forecasts, and
assumptions developed by the Chicago Metropolitan Agency for
Planning with respect to the patterns of population density and
growth, projected commercial and residential development, and
environmental factors, within the metropolitan region and in
areas outside the metropolitan region that may impact public
transportation utilization in the metropolitan region. Before
adopting or amending any Strategic Plan, the Authority shall
consult with the Chicago Metropolitan Agency for Planning
regarding the consistency of the Strategic Plan with the

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Regional Comprehensive Plan adopted pursuant to the Regional
Planning Act.
(h) The Authority may adopt, by the affirmative vote of at
least 12 of its then Directors, sub-regional or corridor plans
for specific geographic areas of the metropolitan region in
order to improve the adequacy, efficiency, and coordination of
existing, or the delivery of new, public transportation. Such
plans may also address areas outside the metropolitan region
that may impact public transportation utilization in the
metropolitan region. In preparing a sub-regional or corridor
plan, the Authority may identify changes in operating practices
or capital investment in the sub-region or corridor that could
increase ridership, reduce costs, improve coordination, or
enhance transit-oriented development. The Authority shall
consult with any affected Service Boards in the preparation of
any sub-regional or corridor plans.
(i) If the Authority determines, by the affirmative vote of
at least 12 of its then Directors, that, with respect to any
proposed new public transportation service or facility, (i)
multiple Service Boards or transportation agencies are
potential service providers and (ii) the public transportation
facilities to be constructed or purchased to provide that
service have an expected construction cost of more than
$25,000,000, the Authority shall have sole responsibility for
conducting any alternatives analysis and preliminary
environmental assessment required by federal or State law.

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Nothing in this subparagraph (i) shall prohibit a Service Board
from undertaking alternatives analysis and preliminary
environmental assessment for any public transportation service
or facility identified in items (i) and (ii) above that is
included in the Five-Year Capital Program as of the effective
date of this amendatory Act of the 95th General Assembly;
however, any expenditure related to any such public
transportation service or facility must be included in a
Five-Year Capital Program under the requirements of Sections
2.01b and 4.02 of this Act.
(Source: P.A. 95-708, eff. 1-18-08.)
(70 ILCS 3615/2.01b)
Sec. 2.01b. The Five-Year Capital Program. By the
affirmative vote of at least 12 of its then Directors, the
Authority, after consultation with the Service Boards and after
holding a minimum of 3 public hearings in Cook County and one
public hearing in each of the other counties in the
metropolitan region, shall each year adopt a Five-Year Capital
Program that shall include each capital improvement to be
undertaken by or on behalf of a Service Board provided that the
Authority finds that the improvement meets any criteria for
capital improvements contained in the Strategic Plan, is not
inconsistent with any sub-regional or corridor plan adopted by
the Authority, and can be funded within amounts available with
respect to the capital and operating costs of such improvement.

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In reviewing proposals for improvements to be included in a
Five-Year Capital Program, the Authority may give priority to
improvements that are intended to bring public transportation
facilities into a state of good repair. The Five-Year Capital
Program shall also identify capital improvements to be
undertaken by a Service Board, a transportation agency, or a
unit of local government and funded by the Authority from
amounts in the Innovation, Coordination, and Enhancement Fund,
provided that no improvement that is included in the Five-Year
Capital Program as of the effective date of this amendatory Act
of the 95th General Assembly may receive funding from the
Innovation, Coordination, and Enhancement Fund. Before
adopting a Five-Year Capital Program, the Authority shall:
(1) consult with the Chicago Metropolitan Agency for
Planning regarding the consistency of the Five-Year
Capital Program with the Regional Comprehensive Plan
adopted pursuant to the Regional Planning Act; and .
(2) produce a list of capital projects submitted by the
Service Boards aggregated and prioritized by the Authority
based on criteria listed in this Section.
Each Service Board shall provide the Authority with a
quarterly report submitted on March 1st, June 1st, September
1st, and December 1st detailing progress on the projects.
Projects listed on the aggregated and prioritized list shall be
the only projects eligible for capital improvement funding and
exceptions shall only be granted in cases of emergency, as

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declared by the Governor or an affirmative vote by the Board.
(Source: P.A. 95-708, eff. 1-18-08.)
(70 ILCS 3615/3A.10) (from Ch. 111 2/3, par. 703A.10)
Sec. 3A.10. Budget and Program. The Suburban Bus Board,
subject to the powers of the Authority in Section 4.11, shall
control the finances of the Division. It shall by ordinance
appropriate money to perform the Division's purposes and
provide for payment of debts and expenses of the Division. Each
year the Suburban Bus Board shall prepare and publish a
comprehensive annual budget and proposed five-year capital
program document, and a financial plan for the 2 years
thereafter describing the state of the Division and presenting
for the forthcoming fiscal year and the 2 following years the
Suburban Bus Board's plans for such operations and capital
expenditures as it intends to undertake and the means by which
it intends to finance them. The proposed budget, financial
plan, and five-year capital program shall be based on the
Authority's estimate of funds to be made available to the
Suburban Bus Board by or through the Authority and shall
conform in all respects to the requirements established by the
Authority. The proposed budget, financial plan, and five-year
capital program shall contain a statement of the funds
estimated to be on hand at the beginning of the fiscal year,
the funds estimated to be received from all sources for such
year and the funds estimated to be on hand at the end of such

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year. The fiscal year of the Division shall be the same as the
fiscal year of the Authority. Before the proposed budget,
financial plan, and five-year capital program are submitted to
the Authority, the Suburban Bus Board shall hold at least one
public hearing thereon in each of the counties in the
metropolitan region in which the Division provides service. The
Suburban Bus Board shall hold at least one meeting for
consideration of the proposed budget, financial plan, and
five-year capital program with the county board of each of the
several counties in the metropolitan region in which the
Division provides service. After conducting such hearings and
holding such meetings and after making such changes in the
proposed budget, financial plan, and five-year capital program
as the Suburban Bus Board deems appropriate, it shall adopt an
annual budget ordinance at least by November 15 next preceding
the beginning of each fiscal year. The budget, financial plan,
and five-year capital program shall then be submitted to the
Authority as provided in Section 4.11. In the event that the
Board of the Authority determines that the budget and financial
plan do not meet the standards of Section 4.11 or match the
Authority's five-year capital program prioritization list of
Section 2.01b of this Act, the Suburban Bus Board shall make
such changes as are necessary to meet such requirements and
adopt an amended budget ordinance. The amended budget ordinance
shall be resubmitted to the Authority pursuant to Section 4.11.
The ordinance shall appropriate such sums of money as are

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deemed necessary to defray all necessary expenses and
obligations of the Division, specifying purposes and the
objects or programs for which appropriations are made and the
amount appropriated for each object or program. Additional
appropriations, transfers between items and other changes in
such ordinance which do not alter the basis upon which the
balanced budget determination was made by the Board of the
Authority may be made from time to time by the Suburban Bus
Board.
The budget shall:
(i) show a balance between (A) anticipated revenues
from all sources including operating subsidies and (B) the
costs of providing the services specified and of funding
any operating deficits or encumbrances incurred in prior
periods, including provision for payment when due of
principal and interest on outstanding indebtedness;
(ii) show cash balances including the proceeds of any
anticipated cash flow borrowing sufficient to pay with
reasonable promptness all costs and expenses as incurred;
(iii) provide for a level of fares or charges and
operating or administrative costs for the public
transportation provided by or subject to the jurisdiction
of the Suburban Bus Board sufficient to allow the Suburban
Bus Board to meet its required system generated revenues
recovery ratio and, beginning with the 2007 fiscal year,
its system generated ADA paratransit services revenue

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recovery ratio;
(iv) be based upon and employ assumptions and
projections which are reasonable and prudent;
(v) have been prepared in accordance with sound
financial practices as determined by the Board of the
Authority;
(vi) meet such other uniform financial, budgetary, or
fiscal requirements that the Board of the Authority may by
rule or regulation establish; and
(vii) be consistent with the goals and objectives
adopted by the Regional Transportation Authority in the
Strategic Plan of Section 2.01a of this Act.
(Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08.)
(70 ILCS 3615/3B.10) (from Ch. 111 2/3, par. 703B.10)
Sec. 3B.10. Budget and Program. The Commuter Rail Board,
subject to the powers of the Authority in Section 4.11, shall
control the finances of the Division. It shall by ordinance
appropriate money to perform the Division's purposes and
provide for payment of debts and expenses of the Division. Each
year the Commuter Rail Board shall prepare and publish a
comprehensive annual budget and proposed five-year capital
program document, and a financial plan for the two years
thereafter describing the state of the Division and presenting
for the forthcoming fiscal year and the two following years the
Commuter Rail Board's plans for such operations and capital

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expenditures as the Commuter Rail Board intends to undertake
and the means by which it intends to finance them. The proposed
budget, financial plan, and five-year capital program shall be
based on the Authority's estimate of funds to be made available
to the Commuter Rail Board by or through the Authority and
shall conform in all respects to the requirements established
by the Authority. The proposed budget, financial plan, and
five-year capital program shall contain a statement of the
funds estimated to be on hand at the beginning of the fiscal
year, the funds estimated to be received from all sources for
such year and the funds estimated to be on hand at the end of
such year. The fiscal year of the Division shall be the same as
the fiscal year of the Authority. Before the proposed budget,
financial plan, and five-year capital program are submitted to
the Authority, the Commuter Rail Board shall hold at least one
public hearing thereon in each of the counties in the
metropolitan region in which the Division provides service. The
Commuter Rail Board shall hold at least one meeting for
consideration of the proposed budget, financial plan, and
five-year capital plan with the county board of each of the
several counties in the metropolitan region in which the
Division provides service. After conducting such hearings and
holding such meetings and after making such changes in the
proposed budget, financial plan, and five-year capital plan as
the Commuter Rail Board deems appropriate, the board shall
adopt its annual budget ordinance at least by November 15 next

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preceding the beginning of each fiscal year. The budget,
financial plan, and five-year capital program shall then be
submitted to the Authority as provided in Section 4.11. In the
event that the Board of the Authority determines that the
budget and program, and financial plan do not meet the
standards of Section 4.11 or match the Authority's five-year
capital program prioritization list of Section 2.01b of this
Act, the Commuter Rail Board shall make such changes as are
necessary to meet such requirements and adopt an amended budget
ordinance. The amended budget ordinance shall be resubmitted to
the Authority pursuant to Section 4.11. The ordinance shall
appropriate such sums of money as are deemed necessary to
defray all necessary expenses and obligations of the Division,
specifying purposes and the objects or programs for which
appropriations are made and the amount appropriated for each
object or program. Additional appropriations, transfers
between items and other changes in such ordinance which do not
alter the basis upon which the balanced budget determination
was made by the Board of the Authority may be made from time to
time by the Commuter Rail Board.
The budget shall:
(i) show a balance between (A) anticipated revenues
from all sources including operating subsidies and (B) the
costs of providing the services specified and of funding
any operating deficits or encumbrances incurred in prior
periods, including provision for payment when due of

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principal and interest on outstanding indebtedness;
(ii) show cash balances including the proceeds of any
anticipated cash flow borrowing sufficient to pay with
reasonable promptness all costs and expenses as incurred;
(iii) provide for a level of fares or charges for the
public transportation provided by or subject to the
jurisdiction of such Commuter Rail Board sufficient to
allow the Commuter Rail Board to meet its required system
generated revenue recovery ratio;
(iv) be based upon and employ assumptions and
projections which the Board of the Authority finds to be
reasonable and prudent;
(v) have been prepared in accordance with sound
financial practices as determined by the Board of the
Authority;
(vi) meet such other uniform financial, budgetary, or
fiscal requirements that the Board of the Authority may by
rule or regulation establish; and
(vii) be consistent with the goals and objectives
adopted by the Regional Transportation Authority in the
Strategic Plan of Section 2.01a of this Act.
(Source: P.A. 95-708, eff. 1-18-08.)
(70 ILCS 3615/4.01) (from Ch. 111 2/3, par. 704.01)
Sec. 4.01. Budget and Program.
(a) The Board shall control the finances of the Authority.

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It shall by ordinance adopted by the affirmative vote of at
least 12 of its then Directors (i) appropriate money to perform
the Authority's purposes and provide for payment of debts and
expenses of the Authority, (ii) take action with respect to the
budget and two-year financial plan of each Service Board, as
provided in Section 4.11, and (iii) adopt an Annual Budget and
Two-Year Financial Plan for the Authority that includes the
annual budget and two-year financial plan of each Service Board
that has been approved by the Authority. The Annual Budget and
Two-Year Financial Plan shall contain a statement of the funds
estimated to be on hand for the Authority and each Service
Board at the beginning of the fiscal year, the funds estimated
to be received from all sources for such year, the estimated
expenses and obligations of the Authority and each Service
Board for all purposes, including expenses for contributions to
be made with respect to pension and other employee benefits,
and the funds estimated to be on hand at the end of such year.
The fiscal year of the Authority and each Service Board shall
begin on January 1st and end on the succeeding December 31st.
By July 1st of each year the Director of the Illinois
Governor's Office of Management and Budget (formerly Bureau of
the Budget) shall submit to the Authority an estimate of
revenues for the next fiscal year of the Authority to be
collected from the taxes imposed by the Authority and the
amounts to be available in the Public Transportation Fund and
the Regional Transportation Authority Occupation and Use Tax

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Replacement Fund and the amounts otherwise to be appropriated
by the State to the Authority for its purposes. The Authority
shall file a copy of its Annual Budget and Two-Year Financial
Plan with the General Assembly and the Governor after its
adoption. Before the proposed Annual Budget and Two-Year
Financial Plan is adopted, the Authority shall hold at least
one public hearing thereon in the metropolitan region, and
shall meet with the county board or its designee of each of the
several counties in the metropolitan region. After conducting
such hearings and holding such meetings and after making such
changes in the proposed Annual Budget and Two-Year Financial
Plan as the Board deems appropriate, the Board shall adopt its
annual appropriation and Annual Budget and Two-Year Financial
Plan ordinance. The ordinance may be adopted only upon the
affirmative votes of 12 of its then Directors. The ordinance
shall appropriate such sums of money as are deemed necessary to
defray all necessary expenses and obligations of the Authority,
specifying purposes and the objects or programs for which
appropriations are made and the amount appropriated for each
object or program. Additional appropriations, transfers
between items and other changes in such ordinance may be made
from time to time by the Board upon the affirmative votes of 12
of its then Directors.
(b) The Annual Budget and Two-Year Financial Plan shall
show a balance between anticipated revenues from all sources
and anticipated expenses including funding of operating

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deficits or the discharge of encumbrances incurred in prior
periods and payment of principal and interest when due, and
shall show cash balances sufficient to pay with reasonable
promptness all obligations and expenses as incurred.
The Annual Budget and Two-Year Financial Plan must show:
(i) that the level of fares and charges for mass
transportation provided by, or under grant or purchase of
service contracts of, the Service Boards is sufficient to
cause the aggregate of all projected fare revenues from
such fares and charges received in each fiscal year to
equal at least 50% of the aggregate costs of providing such
public transportation in such fiscal year. "Fare revenues"
include the proceeds of all fares and charges for services
provided, contributions received in connection with public
transportation from units of local government other than
the Authority, except for contributions received by the
Chicago Transit Authority from a real estate transfer tax
imposed under subsection (i) of Section 8-3-19 of the
Illinois Municipal Code, and from the State pursuant to
subsection (i) of Section 2705-305 of the Department of
Transportation Law (20 ILCS 2705/2705-305), and all other
operating revenues properly included consistent with
generally accepted accounting principles but do not
include: the proceeds of any borrowings, and, beginning
with the 2007 fiscal year, all revenues and receipts,
including but not limited to fares and grants received from

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the federal, State or any unit of local government or other
entity, derived from providing ADA paratransit service
pursuant to Section 2.30 of the Regional Transportation
Authority Act. "Costs" include all items properly included
as operating costs consistent with generally accepted
accounting principles, including administrative costs, but
do not include: depreciation; payment of principal and
interest on bonds, notes or other evidences of obligation
for borrowed money issued by the Authority; payments with
respect to public transportation facilities made pursuant
to subsection (b) of Section 2.20 of this Act; any payments
with respect to rate protection contracts, credit
enhancements or liquidity agreements made under Section
4.14; any other cost to which it is reasonably expected
that a cash expenditure will not be made; costs for
passenger security including grants, contracts, personnel,
equipment and administrative expenses, except in the case
of the Chicago Transit Authority, in which case the term
does not include costs spent annually by that entity for
protection against crime as required by Section 27a of the
Metropolitan Transit Authority Act; the payment by the
Chicago Transit Authority of Debt Service, as defined in
Section 12c of the Metropolitan Transit Authority Act, on
bonds or notes issued pursuant to that Section; the payment
by the Commuter Rail Division of debt service on bonds
issued pursuant to Section 3B.09; expenses incurred by the

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Suburban Bus Division for the cost of new public
transportation services funded from grants pursuant to
Section 2.01e of this amendatory Act of the 95th General
Assembly for a period of 2 years from the date of
initiation of each such service; costs as exempted by the
Board for projects pursuant to Section 2.09 of this Act;
or, beginning with the 2007 fiscal year, expenses related
to providing ADA paratransit service pursuant to Section
2.30 of the Regional Transportation Authority Act; and in
fiscal years 2008 through 2012 inclusive, costs in the
amount of $200,000,000 in fiscal year 2008, reducing by
$40,000,000 in each fiscal year thereafter until this
exemption is eliminated; and
(ii) that the level of fares charged for ADA
paratransit services is sufficient to cause the aggregate
of all projected revenues from such fares charged and
received in each fiscal year to equal at least 10% of the
aggregate costs of providing such ADA paratransit
services. For purposes of this Act, the percentages in this
subsection (b)(ii) shall be referred to as the "system
generated ADA paratransit services revenue recovery
ratio". For purposes of the system generated ADA
paratransit services revenue recovery ratio, "costs" shall
include all items properly included as operating costs
consistent with generally accepted accounting principles.
However, the Board may exclude from costs an amount that

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does not exceed the allowable "capital costs of
contracting" for ADA paratransit services pursuant to the
Federal Transit Administration guidelines for the
Urbanized Area Formula Program.
(c) The actual administrative expenses of the Authority for
the fiscal year commencing January 1, 1985 may not exceed
$5,000,000. The actual administrative expenses of the
Authority for the fiscal year commencing January 1, 1986, and
for each fiscal year thereafter shall not exceed the maximum
administrative expenses for the previous fiscal year plus 5%.
"Administrative expenses" are defined for purposes of this
Section as all expenses except: (1) capital expenses and
purchases of the Authority on behalf of the Service Boards; (2)
payments to Service Boards; and (3) payment of principal and
interest on bonds, notes or other evidence of obligation for
borrowed money issued by the Authority; (4) costs for passenger
security including grants, contracts, personnel, equipment and
administrative expenses; (5) payments with respect to public
transportation facilities made pursuant to subsection (b) of
Section 2.20 of this Act; and (6) any payments with respect to
rate protection contracts, credit enhancements or liquidity
agreements made pursuant to Section 4.14.
(d) This subsection applies only until the Department
begins administering and enforcing an increased tax under
Section 4.03(m) as authorized by this amendatory Act of the
95th General Assembly. After withholding 15% of the proceeds of

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any tax imposed by the Authority and 15% of money received by
the Authority from the Regional Transportation Authority
Occupation and Use Tax Replacement Fund, the Board shall
allocate the proceeds and money remaining to the Service Boards
as follows: (1) an amount equal to 85% of the proceeds of those
taxes collected within the City of Chicago and 85% of the money
received by the Authority on account of transfers to the
Regional Transportation Authority Occupation and Use Tax
Replacement Fund from the County and Mass Transit District Fund
attributable to retail sales within the City of Chicago shall
be allocated to the Chicago Transit Authority; (2) an amount
equal to 85% of the proceeds of those taxes collected within
Cook County outside the City of Chicago and 85% of the money
received by the Authority on account of transfers to the
Regional Transportation Authority Occupation and Use Tax
Replacement Fund from the County and Mass Transit District Fund
attributable to retail sales within Cook County outside of the
city of Chicago shall be allocated 30% to the Chicago Transit
Authority, 55% to the Commuter Rail Board and 15% to the
Suburban Bus Board; and (3) an amount equal to 85% of the
proceeds of the taxes collected within the Counties of DuPage,
Kane, Lake, McHenry and Will shall be allocated 70% to the
Commuter Rail Board and 30% to the Suburban Bus Board.
(e) This subsection applies only until the Department
begins administering and enforcing an increased tax under
Section 4.03(m) as authorized by this amendatory Act of the

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95th General Assembly. Moneys received by the Authority on
account of transfers to the Regional Transportation Authority
Occupation and Use Tax Replacement Fund from the State and
Local Sales Tax Reform Fund shall be allocated among the
Authority and the Service Boards as follows: 15% of such moneys
shall be retained by the Authority and the remaining 85% shall
be transferred to the Service Boards as soon as may be
practicable after the Authority receives payment. Moneys which
are distributable to the Service Boards pursuant to the
preceding sentence shall be allocated among the Service Boards
on the basis of each Service Board's distribution ratio. The
term "distribution ratio" means, for purposes of this
subsection (e) of this Section 4.01, the ratio of the total
amount distributed to a Service Board pursuant to subsection
(d) of Section 4.01 for the immediately preceding calendar year
to the total amount distributed to all of the Service Boards
pursuant to subsection (d) of Section 4.01 for the immediately
preceding calendar year.
(f) To carry out its duties and responsibilities under this
Act, the Board shall employ staff which shall: (1) propose for
adoption by the Board of the Authority rules for the Service
Boards that establish (i) forms and schedules to be used and
information required to be provided with respect to a five-year
capital program, annual budgets, and two-year financial plans
and regular reporting of actual results against adopted budgets
and financial plans, (ii) financial practices to be followed in

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the budgeting and expenditure of public funds, (iii)
assumptions and projections that must be followed in preparing
and submitting its annual budget and two-year financial plan or
a five-year capital program; (2) evaluate for the Board public
transportation programs operated or proposed by the Service
Boards and transportation agencies in terms of the goals and
objectives set out in the Strategic Plan; (3) keep the Board
and the public informed of the extent to which the Service
Boards and transportation agencies are meeting the goals and
objectives adopted by the Authority in the Strategic Plan; and
(4) assess the efficiency or adequacy of public transportation
services provided by a Service Board and make recommendations
for change in that service to the end that the moneys available
to the Authority may be expended in the most economical manner
possible with the least possible duplication.
(g) All Service Boards, transportation agencies,
comprehensive planning agencies, including the Chicago
Metropolitan Agency for Planning, or transportation planning
agencies in the metropolitan region shall furnish to the
Authority such information pertaining to public transportation
or relevant for plans therefor as it may from time to time
require. The Executive Director, or his or her designee, shall,
for the purpose of securing any such information necessary or
appropriate to carry out any of the powers and responsibilities
of the Authority under this Act, have access to, and the right
to examine, all books, documents, papers or records of a

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Service Board or any transportation agency receiving funds from
the Authority or Service Board, and such Service Board or
transportation agency shall comply with any request by the
Executive Director, or his or her designee, within 30 days or
an extended time provided by the Executive Director.
(h) No Service Board shall undertake any capital
improvement which is not identified in the Five-Year Capital
Program or as otherwise prescribed in Section 2.01b of this
Act.
(i) No later than January 1, 2013, the Service Boards shall
implement software that allows the Authority to access and
review all real-time information related to financial
reporting.
(j) The Authority shall prepare and present reports to the
Service Boards on a quarterly basis. These reports shall
include the Authority's assessment of the overall financial
issues of the Authority, as well as those unique to the Service
Board. The reports shall also include the results of any
audits, evaluations, reviews, or studies performed by the
Authority for the Authority or another individual agency.
(k) Service Boards shall each provide to the Authority an
annual budget at least 45 business days before the budget is
presented to the Service Board for a vote of adoption. After
reviewing a Service Board's proposed budget, the Authority
shall present and make recommendations to the respective
Service Board concerning the proposed budget no later than 15

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days before that Service Board votes for budget adoption.
(Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08;
95-906, eff. 8-26-08.)
(70 ILCS 3615/4.11) (from Ch. 111 2/3, par. 704.11)
Sec. 4.11. Budget Review Powers.
(a) Based upon estimates which shall be given to the
Authority by the Director of the Governor's Office of
Management and Budget (formerly Bureau of the Budget) of the
receipts to be received by the Authority from the taxes imposed
by the Authority and the authorized estimates of amounts to be
available from State and other sources to the Service Boards,
and the times at which such receipts and amounts will be
available, the Board shall, not later than the next preceding
September 15th prior to the beginning of the Authority's next
fiscal year, advise each Service Board of the amounts estimated
by the Board to be available for such Service Board during such
fiscal year and the two following fiscal years and the times at
which such amounts will be available. The Board shall, at the
same time, also advise each Service Board of its required
system generated revenues recovery ratio for the next fiscal
year which shall be the percentage of the aggregate costs of
providing public transportation by or under jurisdiction of
that Service Board which must be recovered from system
generated revenues. The Board shall, at the same time, consider
the written determination of the Executive Director, made

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pursuant to Section 2.01d, of the costs of ADA paratransit
services that are required to be provided under the federal
Americans with Disabilities Act of 1990 and its implementing
regulations, and shall amend the current year budgets of the
Authority and the Service Boards to provide for additional
funding for the provision of ADA paratransit services, if
needed. The Board shall, at the same time, beginning with the
2007 fiscal year, also advise each Service Board that provides
ADA paratransit services of its required system generated ADA
paratransit services revenue recovery ratio for the next fiscal
year which shall be the percentage of the aggregate costs of
providing ADA paratransit services by or under jurisdiction of
that Service Board which must be recovered from fares charged
for such services, except that such required system generated
ADA paratransit services revenue recovery ratio shall not
exceed the minimum percentage established pursuant to Section
4.01(b)(ii) of this Act. In determining a Service Board's
system generated revenue recovery ratio, the Board shall
consider the historical system generated revenues recovery
ratio for the services subject to the jurisdiction of that
Service Board. The Board shall not increase a Service Board's
system generated revenues recovery ratio for the next fiscal
year over such ratio for the current fiscal year
disproportionately or prejudicially to increases in such
ratios for other Service Boards. The Board may, by ordinance,
provide that (i) the cost of research and development projects

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in the fiscal year beginning January 1, 1986 and ending
December 31, 1986 conducted pursuant to Section 2.09 of this
Act, (ii) the costs for passenger security, and (iii)
expenditures of amounts granted to a Service Board from the
Innovation, Coordination, and Enhancement Fund for operating
purposes may be exempted from the farebox recovery ratio or the
system generated revenues recovery ratio of the Chicago Transit
Authority, the Suburban Bus Board, and the Commuter Rail Board,
or any of them. During fiscal years 2008 through 2012, the
Board may also allocate the exemption of $200,000,000 and the
reducing amounts of costs provided by this amendatory Act of
the 95th General Assembly from the farebox recovery ratio or
system generated revenues recovery ratio of each Service Board.
(b)(1) Not later than the next preceding November 15 prior
to the commencement of such fiscal year, each Service Board
shall submit to the Authority its proposed budget for such
fiscal year and its proposed financial plan for the two
following fiscal years. Such budget and financial plan shall
(i) be prepared in the format, follow the financial and
budgetary practices, and be based on any assumptions and
projections required by the Authority and (ii) not project or
assume a receipt of revenues from the Authority in amounts
greater than those set forth in the estimates provided by the
Authority pursuant to subsection (a) of this Section.
(2) The Board shall review the proposed budget and two-year
financial plan submitted by each Service Board. The Board shall

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approve the budget and two-year financial plan of a Service
Board if:
(i) such budget and plan show a balance between (A)
anticipated revenues from all sources including operating
subsidies and (B) the costs of providing the services
specified and of funding any operating deficits or
encumbrances incurred in prior periods, including
provision for payment when due of principal and interest on
outstanding indebtedness;
(ii) such budget and plan show cash balances including
the proceeds of any anticipated cash flow borrowing
sufficient to pay with reasonable promptness all costs and
expenses as incurred;
(iii) such budget and plan provide for a level of fares
or charges and operating or administrative costs for the
public transportation provided by or subject to the
jurisdiction of such Service Board sufficient to allow the
Service Board to meet its required system generated revenue
recovery ratio and, beginning with the 2007 fiscal year,
system generated ADA paratransit services revenue recovery
ratio;
(iv) such budget and plan are based upon and employ
assumptions and projections which are reasonable and
prudent;
(v) such budget and plan have been prepared in
accordance with sound financial practices as determined by

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the Board;
(vi) such budget and plan meet such other financial,
budgetary, or fiscal requirements that the Board may by
rule or regulation establish; and
(vii) such budget and plan are consistent with the
goals and objectives adopted by the Authority in the
Strategic Plan.
(3) (Blank).
(4) Unless the Board by an affirmative vote of 12 of the
then Directors determines that the budget and financial plan of
a Service Board meets the criteria specified in clauses (i)
through (vii) of subparagraph (2) of this paragraph (b), the
Board shall withhold from that Service Board 25% of the cash
proceeds of taxes imposed by the Authority under Section 4.03
and Section 4.03.1 and received after February 1 and 25% of the
amounts transferred to the Authority from the Public
Transportation Fund under Section 4.09(a) (but not including
Section 4.09(a)(3)(iv)) after February 1 that the Board has
estimated to be available to that Service Board under Section
4.11(a). Such funding shall be released to the Service Board
only upon approval of a budget and financial plan under this
Section or adoption of a budget and financial plan on behalf of
the Service Board by the Authority.
(5) If the Board has not found that the budget and
financial plan of a Service Board meets the criteria specified
in clauses (i) through (vii) of subparagraph (2) of this

SB2572 - 36 - LRB097 13862 KMW 58429 b
paragraph (b), the Board, by the affirmative vote of at least
12 of its then Directors, shall adopt a budget and financial
plan meeting such criteria for that Service Board.
(c)(1) If the Board shall at any time have received a
revised estimate, or revises any estimate the Board has made,
pursuant to this Section of the receipts to be collected by the
Authority which, in the judgment of the Board, requires a
change in the estimates on which the budget of any Service
Board is based, the Board shall advise the affected Service
Board of such revised estimates, and such Service Board shall
within 30 days after receipt of such advice submit a revised
budget incorporating such revised estimates. If the revised
estimates require, in the judgment of the Board, that the
system generated revenues recovery ratio of one or more Service
Boards be revised in order to allow the Authority to meet its
required ratio, the Board shall advise any such Service Board
of its revised ratio and such Service Board shall within 30
days after receipt of such advice submit a revised budget
incorporating such revised estimates or ratio.
(2) Each Service Board shall, within such period after the
end of each fiscal quarter as shall be specified by the Board,
report to the Authority its financial condition and results of
operations and the financial condition and results of
operations of the public transportation services subject to its
jurisdiction, as at the end of and for such quarter. If in the
judgment of the Board such condition and results are not

SB2572 - 37 - LRB097 13862 KMW 58429 b
substantially in accordance with such Service Board's budget
for such period, the Board shall so advise such Service Board
and such Service Board shall within the period specified by the
Board submit a revised budget incorporating such results.
(3) If the Board shall determine that a revised budget
submitted by a Service Board pursuant to subparagraph (1) or
(2) of this paragraph (c) does not meet the criteria specified
in clauses (i) through (vii) of subparagraph (2) of paragraph
(b) of this Section, the Board shall withhold from that Service
Board 25% of the cash proceeds of taxes imposed by the
Authority under Section 4.03 or 4.03.1 and received by the
Authority after February 1 and 25% of the amounts transferred
to the Authority from the Public Transportation Fund under
Section 4.09(a) (but not including Section 4.09(a)(3)(iv))
after February 1 that the Board has estimated to be available
to that Service Board under Section 4.11(a). If the Service
Board submits a revised financial plan and budget which plan
and budget shows that the criteria will be met within a four
quarter period, the Board shall release any such withheld funds
to the Service Board. The Board by the affirmative vote of at
least 12 of its then Directors may require a Service Board to
submit a revised financial plan and budget which shows that the
criteria will be met in a time period less than four quarters.
(d) All budgets and financial plans, financial statements,
audits and other information presented to the Authority
pursuant to this Section or which may be required by the Board

SB2572 - 38 - LRB097 13862 KMW 58429 b
to permit it to monitor compliance with the provisions of this
Section shall be prepared and presented in such manner and
frequency and in such detail as shall have been prescribed by
the Board, shall be prepared on both an accrual and cash flow
basis as specified by the Board, shall present such information
as the Authority shall prescribe that fairly presents the
condition of any pension plan or trust for health care benefits
with respect to retirees established by the Service Board and
describes the plans of the Service Board to meet the
requirements of Sections 4.02a and 4.02b, and shall identify
and describe the assumptions and projections employed in the
preparation thereof to the extent required by the Board. If the
Executive Director certifies that a Service Board has not
presented its budget and two-year financial plan in conformity
with the rules adopted by the Authority under the provisions of
Section 4.01(f) and this subsection (d), and such certification
is accepted by the affirmative vote of at least 12 of the then
Directors of the Authority, the Authority shall not distribute
to that Service Board any funds for operating purposes in
excess of the amounts distributed for such purposes to the
Service Board in the previous fiscal year. Except when the
Board adopts a budget and a financial plan for a Service Board
under paragraph (b)(5), a Service Board shall provide for such
levels of transportation services and fares or charges therefor
as it deems appropriate and necessary in the preparation of a
budget and financial plan meeting the criteria set forth in

SB2572 - 39 - LRB097 13862 KMW 58429 b
clauses (i) through (vii) of subparagraph (2) of paragraph (b)
of this Section. The Authority shall have access to and the
right to examine and copy all books, documents, papers,
records, or other source data of a Service Board relevant to
any information submitted pursuant to this Section.
(e) Whenever this Section requires the Board to make
determinations with respect to estimates, budgets or financial
plans, or rules or regulations with respect thereto such
determinations shall be made upon the affirmative vote of at
least 12 of the then Directors and shall be incorporated in a
written report of the Board and such report shall be submitted
within 10 days after such determinations are made to the
Governor, the Mayor of Chicago (if such determinations relate
to the Chicago Transit Authority), and the Auditor General of
Illinois.
(f) If the Authority discovers a violation of items (1) and
(2) in Section 2.01b of this Act, then the Board shall withhold
from that Service Board 25% of the cash proceeds of taxes
imposed by the Authority under Sections 4.03 or 4.03.1 and
received by the Authority and 25% of the amounts transferred to
the Authority from the Public Transportation Fund under
subsection (a) of Section 4.09, but not including the amounts
described in paragraph (iv) of item (3) of subsection (a) of
Section 4.09, that the Board has estimated to be available to
that Service Board under subsection (a) of Section 4.11. To
resume this funding, at least 3 current members of the

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violating Service Board shall testify in front of the
Authority's finance committee or successor thereof. This
hearing shall be held no later than 10 days after the claim of
the offense. The hearing shall allow the Service Board a chance
to discuss the violation. No more than 10 business days after
the hearing, the Authority's finance committee or successor
thereof shall take this matter before the Board to determine
whether to continue sanctioning the Service Board as outlined
in this subsection.
(Source: P.A. 97-399, eff. 8-16-11.)
SB2572 - 41 - LRB097 13862 KMW 58429 b
INDEX
Statutes amended in order of appearance