Metra released its proposed $1.135 billion 2025 operating budget that keeps fares at current levels and relies on strong sales tax revenues and a dwindling allotment of federal COVID relief aid to cover the expected growth in expenses. The agency also proposed a $366.4 million capital plan that continues major investment in bridges, stations and new and rehabilitated rolling stock.
The plans will be subject to public feedback, including hearings, before the Metra Board of Directors votes in November.
“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 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," said Metra Executive Director and CEO Jim Derwinski.
The proposed operating budget includes about $65 million in costs associated with a capacity expansion on the Metra Electric Line for the Northern Indiana Commuter Transportation District (NICTD), which NICTD is covering. Excluding those costs, the budget is about 4.1 percent higher than the 2024 budget, largely due to expected inflationary, contractual and market increases. It includes additional spending related to new regulations and related training, upgrades to Metra’s Positive Train Control safety system related to heightened cybersecurity risks and increased costs related to marketing.
The budget is funded by system-generated revenue of $304.1 million, including $184.2 million in fares, based on a projection that ridership will grow about seven percent in 2025 to 39 million passenger trips. It also is funded by $592.5 million in regional sale tax receipts and $238.4 million out of Metra’s remaining $331.8 million in federal COVID-19 relief funding.
The COVID-19 relief funding is expected to run out in 2026 at Metra, Chicago Transit Authority and Pace. Metra says lawmakers in Springfield, Ill., are aware of the impending problem and have begun to work 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 with $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 Regional Transportation Authority Innovation, Coordination and Enhancement (ICE) funds.
Public hearings about the budget will be held throughout the region on Nov. 6 and 7 between 4:00 p.m. and 6:00 p.m. The city of Chicago hearing can also be attended virtually. A copy of the proposed budget can be found on Metra's website.
