Daley Talks CTA Fare Hikes, Property Taxes

Mayor Daley responded yesterday to the CTA's proposed 2010 budget, calling the potential fare hikes and cuts in service, “very, very ugly" while also trying to reinforce that nothing has been approved, adding, "This is only proposed. And like anything else, that's the last resort. No one wants to see fare increases or service cuts. But they are in a very difficult position." The proposed budget includes the cutting of several express bus routes, trimming back time-tables for bus and rail service, and, most famously (or infamously), raising rail and express bus route fares by 75-cents to $3 per ride.

Looking for ways to close the $300 million budget hole, Daley admitted that the free rides for seniors, a condition strong-armed by then-governor Rod Blagojevich in exchange for money that prevented the CTA's previous "Doomsday" scenario, has to be reexamined: “They have to revisit everything. And that is one of them they have to revisit, definitely.”

Daley also shot down the suggestion of a new property tax to help close the city's own budget gap, estimated to be around $520 million. Said the mayor:

"You can't [raise property taxes] ... That would hurt people tremendously...You can only take so much. People are being laid off on a daily basis. People are getting cut back. They don't have the money anymore. Government has to look at itself and find out what they can live with and what are their priorities. Simple as that."

So what will Mayor Daley propose when he presents his 2010 budget to the City Council in a special session a week from today? Some sources suggest rather than raise taxes, Daley will propose pulling cash from the city's long-term fund which holds money from the city's controversial parking meter and Skyway privatizations.