Metra proposed a $1.135 billion operating budget that holds fares at current levels and relies on strong sales tax revenues and a dwindling allotment of federal COVID-relief aid to cover growing expenses.

In addition to covering expenses, the budget also proposes a $366.4 million capital plan that continues investing in bridges, stations, and new and rehabilitated rolling stock.

“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.”

Increasing Costs

The proposed operating budget includes about $65 million in costs associated with a capacity expansion for the Metra Electric Line in the Northern Indiana Commuter Transportation District (NICTD) which the district is covering.

The budget is about 4.1% higher than the 2024 budget excluding the NICTD costs. The cause is largely due to expected inflationary, contractual and market increases. 

Additional spending is related to new regulations and related training, upgrades to Metra’s Positive Train Control safety system, heightened cybersecurity risks, and increased costs of marketing.

Where is the Money Coming From

The budget is funded by $304.1 million in system generated revenue, including $184.2 million in fares. A projection predicted that ridership will grow about 7% in 2025 to 39 million passenger trips.

An additional $592.4 million in regional sales tax receipts and $238.4 million of Metra’s remaining $331.8 million in federal COVID-relief funding will cover the remaining budget.

The COVID-relief funding was approved by Washington to help transit agencies cope with the pandemic-related drop in ridership and fare revenue. It is expected to run out in 2026 and lawmakers in Springfield are working on potential solutions.

The proposed #366.4 million capital program allocated $93.8 million to rolling stock, $101.8 million to bridges, track, and structures, $39.2 million to signal, electrical, and communication, $57 million to facilities and equipment, $34.9 million to stations and parking, and $39.8 million to support activities.

The capital program is funded through $242.3 million in federal formula funding, $29 million in federal congestion mitigation and air quality funds, $88.6 million in state PAYGO funds, and $6.5 million in RTA innovation, coordination, and enhancement funds.

Feedback to be Considered

The plans will be subject to public feedback before the Metra Board of Directors votes in November.

Public hearings about the budget will be held throughout the region on November 6 and 7 between 4 p.m. and 6 p.m. 

The November 6 hearings will be held in Joliet City Hall in Will County, Clarendon Hills Village Hall in DuPage County, Metra’s 13^th floor Board Room in Chicago, and Mundelein Village Hall in Lake County.

Hearings on November 7 will take place at Homewood Village Hall in South Suburban Cook County, the Kane County Government Center, Hanover Park Police Department in North Suburban Cook County, and Crystal Lake City Hall in McHenry County.

The Chicago hearing can also be attended virtually via Microsoft Teams.