Pace Board of Directors Approves 2009 Budget

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--Fares on Pace buses will increase for the first time in nearly eight years this January, following approval of the proposed 2009 budget by the agency’s Board of Directors. The general fare increase takes effect January 1 and raises adult fares on fixed route service by $0.25. Also on that date, Pace will stop accepting the CTA 7-Day, Visitor/Fun Passes and U-Pass, though an alternative Pace/CTA 7-Day pass will be instituted.

Citing budget pressures, specifically expectations of continued volatility in the price of fuel, increased costs of labor, services, and materials, as well as the oversight of the RTA, which urged a small fare increase to stabilize Pace’s 3-year business plan. The regular adult fare will increase by $0.25 to $1.75, and adult fares on Metra Feeder service as well as in Local Fare Zones- found in Joliet, Aurora, Elgin, and Waukegan- will increase by $0.50 to $1.75. Vanpool fares, except the Advantage program, will increase by 10% beginning in January. Pace Board Chairman Rick Kwasneski said, “We’ve been able to avoid a fare increase for many years thanks to our efforts to streamline costs and operate efficiently. We hope riders understand that this small fare increase is the fiscally responsible thing to do by helping to expand service in the region while avoiding the need for a potentially steeper increase in the future.” The last fare increase on Pace fixed route service was implemented in April, 2001. The budget contains no fare increases for ADA Paratransit service, as the Pace Board awaits reports from the Blue Ribbon Committee on Paratransit and an RTA audit of paratransit operations.

Other budget-related action included the creation of a new Pace/CTA 7-Day pass. The new pass will be sold at the beginning of 2009 and will be sold to passengers that use both CTA and Pace service for their commute. After December 31, 2008, Pace will no longer accept the CTA 7-Day Pass- only the joint pass will be accepted on Pace buses. The new pass is the result of nearly a year of discussion between Pace, RTA, and CTA regarding Pace’s acceptance of the existing pass, which will have been used for an estimated 7.7 million trips on Pace during 2008- roughly 23% of all fixed route ridership. Pace received no reimbursement during 2008 for trips for which the 7-Day pass was used as the fare media, resulting in an estimated revenue loss of $6.4 million- the value of the trips taken. “This is not a perfect alternative, but we’re glad to have reached agreement on this new pass as opposed to outright elimination of a 7-Day pass on our buses, which would have been very difficult for many of the people who use it,” said Kwasneski. The new joint Pace/CTA pass will be sold for a $5.00 premium over the cost of the CTA-only 7 Day Pass, which is proposed to be sold for $24 pending CTA Board approval. As a result, the joint pass would be sold for $29. Pace is also eliminating acceptance of the CTA’s Visitor/Fun Passes and the U-Pass. The CTA/Pace 30-Day pass, Chicago Card and Chicago Card Plus, and CTA stored value farecards will all continue to be accepted on Pace buses.

The Suburban Service operating budget, comprised of fixed route bus, vanpool, and non-ADA dial-a-ride programs, totals $204.6 million. That budget includes $7.5 million to be invested regionally on development of new or expanded service. Pace intends to work with local and regional stakeholders to develop plans for how and where to improve service. Operation of ADA paratransit service in Chicago and suburban areas comprises the Regional ADA Paratransit budget, and amounts to $107.2 million. The budget for Pace’s capital program adds up to $43.3 million and will be used largely for replacement of aging buses and infrastructure improvements, both of which have been deferred in recent years because of the need to divert capital funds to cover shortfalls to the operating budget. “We have a critical need to replace nearly 20% of the buses in our fleet, and it’s our hope that state leaders will be able to reach consensus in the coming year on a new capital plan,” said Kwasneski.

Pace held 13 public hearings throughout its service area regarding its proposed 2009 budget and accepted comments via e-mail and post. A total of 96 people attended the hearings.

More information about the 2009 Pace Budget and fare increase can be found at www.pacebus.com.