Under the proposal by Gayle Franzen, chairman of the Regional Transportation Authority (RTA), a Regional Transit Service (RTS) would be created, consolidating the financial planning of the authority's three subsidiaries. The trio of transit systems include: the Chicago Transit Authority (CTA), responsible for the city's buses and elevated trains; Metra, responsible for commuter rail lines throughout the six-county area; and PACE, the suburban bus service.

"By combining marketing, legal, legislative, planning, information services and other similar functions which are now being quadruplicated throughout the RTA, CTA, Metra and PACE, we are confident that the region can save a minimum of $40 million each year," Franzen said when he unveiled his fiscal measures in May. "This provides the region with the ability to forego painful service cuts and fare increases."

Franzen has estimated that the RTA could face a budget shortfall of at least $84 million by 1995. And while the cash crunch spotlight has been focused on the CTA, he says Metra and PACE officials have privately admitted that they have near-future budget concerns about their agencies.

While the merger would cut an estimated 450 jobs, with the biggest cuts coming from a consolidation of the three agencies' administrative functions and a reorganization of PACE-CTA bus lines, there would be transitional costs. Franzen projected only saving about $11 million for the first 12 to 18 months. After that initial period, the $39.8 million in annual savings would begin to register.

Logic says combining four transit systems into one would save dollars — taxpayer dollars. Reaction to this plan, however, has been a classic case of Chicago versus the suburbs with public officials in both places flexing their political muscle instead of civic minds. The General Assembly, reflecting the mood of mayors, managers and lobbyists, allowed the proposal to die in committee. After the defeat, Franzen said, "The political community is going to have to come to the realization that we have a serious financial problem. In this antitax climate, it makes no sense to be funding four bureaucracies."

Operating budgets for 1992 were $782 million for the CTA, $310 million for Metra and $88 million for PACE. Mass transit in the six-county region is funded largely by fare box receipts, local sales taxes and state funds (the state matches 25 percent of the sales tax earmarked for the system). Federal funds and interest from investments complete the revenue sources.

The local sales tax rate for the RTA in Cook County is 1 percent; the rate is one-fourth of 1 percent in the other five counties — DuPage, Kane, Lake, McHenry and Will. Of the total sales tax revenue received for mass transit, purchasers of goods in Cook are contributing 88 percent and buyers in the other counties 12 percent.

But this year's revenues are falling significantly below projections, and too many variables, like mounting operational costs, fewer riders and shrinking state and federal funds led Franzen to project the shortfall to come in three years.

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So with this chance to save money, without additional tax dollars, fare increases or service cuts, why didn't the General Assembly and local politicians quickly embrace the idea of an RTS? For one thing, elected officials resist acting quickly. For another, the controversy hits them right in their power base of peers and constituents. City and suburban leaders have long portrayed each other as the troublemaker, often shifting blame to the other's turf. If one or the other accepted any blame, such a reversal would raise questions about previous actions. Then there's the issue of control.

Under an RTS there would be one board, weighted in favor of suburban representatives, which would have direct responsibility for the entire region. Chicago Mayor Richard M. Daley is steadfastly against losing control over the CTA. Suburban leaders fear losing even more of their share of transit funds to keep the CTA from collapsing.

Not surprisingly, the current transit chiefs, who would lose considerable power in jobs, contracts and prestige, scoffed at the idea of consolidation. CTA Chairman dark Burrus and Metra Chairman Jeffrey Ladd predicted soon after Franzen proposed the RTS that enabling legislation would fail to pass the General Assembly. Florence Boone, chairwoman of the PACE board, called the plan a "regression."

As for riders in the region, the most significant change for them under the RTS plan, Franzen acknowledges, would be cuts in suburban bus service by PACE. He says the cuts are justifiable because PACE buses are often running empty and are not supporting themselves with fares to as high a degree as the CTA and Metra. For 1992, the CTA received 53 percent or $414 million of its operating budget from fare box receipts, Metra collected 55 percent (about $171 million) and PACE pulled only 34 percent (roughly $30 million) from fares.

In the short term, an RTS wouldn't save riders a large number of transfers. A Lincoln Park resident, for example, going to Chicago Midway Airport, would still get there by taking three different CTA buses. Still, a united system could make for better long-term planning. For instance, the long anticipated CTA Southwest Line connecting the Loop by mass transit train to Midway, could greatly ease rider time and transfers. (For details on the new Southwest Line, see the article beginning on page 33.) Long-range planning could also be aimed toward a cleaner environment by encouraging all to take public transportation instead of their automobiles.

Franzen says the idea of combining the four systems into one won't go away. He cites other reasons for advocating the RTS, like cost savings when buying fuel and materials in greater bulk. He'll keep trying at each session with legislators, lobbyists and influential, local politicians because the system needs to find a way to survive financially over the next several years. "I'm gonna keep trying 'til we get a solution," Franzen said. "If they raise taxes, then that's the solution. If they choose consolidation, then that's the solution."

Manuel Galvan is a Chicago writer and marketing consultant.

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