(The Center Square) – An Illinois state senator says he’s “all ears” when it comes to funding public transit, but he insists on $1.5 billion from taxpayers and plans to continue pushing his tax proposals.
Regional transit agencies are facing a fiscal cliff of at least $760 million in 2026. State Sen. Ram Villivalam, D-Chicago, said reforms have been negotiated at length and he has put his funding plan forward in House Bill 3438.
Villivalam said any funding plan would have to invest $1.5 billion and keep at least $200 million for downstate transit.
“If there’s a better funding plan, we’re all ears. Short of that, we’d like to see our bill move in the House and be sent to the governor,” Villivalam told The Center Square.
Villivalam defended the retail delivery tax which faced opposition last spring.
“Sixty-five percent of online orders are over $200 or more. If you’re ordering something online repeatedly for over $200, by the way there’s 742 million deliveries every year, 6-7 deliveries per person that does online orders, you’re in a position to be able to afford $1.50,” Villivlam said.
Illinois Chamber of Commerce President and CEO Lou Sandoval said the retail delivery tax would be regressive.
“I think the uproar in that one was that it was going to really hurt certain groups, people that don’t have the mobility, where the taxation becomes regressive. Seniors that live in food deserts, people that live in pharmacy deserts, students that are on fixed income that require deliveries to get things to their rural area, that hurts people. That’s fixed inflation statewide for an issue that affects one particular region,” Sandoval told The Center Square in June.
Suburban lawmakers and residents have expressed concerns that state taxpayers would be bailing out the Chicago Transit Authority while suburban commuters continue to deal with subpar service and increasing costs. People in rural areas are less likely to use public transportation, but they would also be asked to help fund transit.
Villivalam said 54 Downstate transit agencies would receive a historic level of funding as part of the $1.5 billion package.
“They started out with their assessment request with $80 million for those agencies and those areas. We ensured that they have over $200 million for downstate transit agencies to get from county to county, township to township, but also to get from Rockford to Chicago, Quad Cities to Chicago, Peoria to Chicago and back. That’s what those communities and residents have asked for,” Villivalam explained.
State Sen. Terri Bryant, R-Murphysboro, said Villivalam’s road-usage tax to help fund transit would hurt southern Illinoisans who tend to drive more miles.
“Senator Villivalam, I think, is out of touch with areas outside of his district when he’s proposing a per-mile tax,” Bryant told The Center Square.
Bryant said people outside of Chicago drive an exorbitant number of miles. She said Villivalam might not propose such a tax if he would get out of the city a little more.
Last month, Gov. J.B. Pritzker suggested there could be a special legislative session to deal with the transit issue.
Villivalam said it’s above his pay grade as to whether a special legislative session is called.
“Obviously, that’s a decision for the governor, the speaker, the Senate president to make,” Villivalam said.
