Bill Text: IL SB1725 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Regional Transportation Authority Act and the Metropolitan Transit Authority Act. Requires that the budget and 2-year financial plan submitted by each Service Board (Chicago Transit Authority, Suburban Bus Board, and Commuter Rail Board) to the Regional Transportation Authority must be approved by the Chairman of the Board of Directors of the Regional Transportation Authority. Provides that the Chairman of the Board of Directors of the Regional Transportation Authority may reduce or veto any item of appropriations in the budget or plan submitted by a Service Board and shall return the item vetoed or reduced with his or her objections to the Board of the Regional Transportation Authority. Sets forth the procedure for the Board of the Regional Transportation Authority to override the Chairman's veto. Makes conforming changes in provisions concerning the approval of a Service Board's revised budget. Effective January 1, 2012.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB1725 Detail]

Download: Illinois-2011-SB1725-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB1725 Introduced 2/9/2011, by Sen. Kirk W. Dillard SYNOPSIS AS INTRODUCED:
70 ILCS 3605/28a from Ch. 111 2/3, par. 328a
70 ILCS 3605/30 from Ch. 111 2/3, par. 330
70 ILCS 3605/34 from Ch. 111 2/3, par. 334
70 ILCS 3615/2.04 from Ch. 111 2/3, par. 702.04
70 ILCS 3615/3A.10 from Ch. 111 2/3, par. 703A.10
70 ILCS 3615/3B.10 from Ch. 111 2/3, par. 703B.10
70 ILCS 3615/4.11 from Ch. 111 2/3, par. 704.11
Amends the Regional Transportation Authority Act and the Metropolitan Transit Authority Act. Requires that the budget and 2-year financial plan submitted by each Service Board (Chicago Transit Authority, Suburban Bus Board, and Commuter Rail Board) to the Regional Transportation Authority must be approved by the Chairman of the Board of Directors of the Regional Transportation Authority. Provides that the Chairman of the Board of Directors of the Regional Transportation Authority may reduce or veto any item of appropriations in the budget or plan submitted by a Service Board and shall return the item vetoed or reduced with his or her objections to the Board of the Regional Transportation Authority. Sets forth the procedure for the Board of the Regional Transportation Authority to override the Chairman's veto. Makes conforming changes in provisions concerning the approval of a Service Board's revised budget. Effective January 1, 2012.
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A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Metropolitan Transit Authority Act is
amended by changing Sections 28a, 30, and 34 as follows:
(70 ILCS 3605/28a) (from Ch. 111 2/3, par. 328a)
Sec. 28a. Contracts with labor organizations; collective
bargaining agreements.
(a) The Board may deal with and enter into written
contracts with the employees of the Authority through
accredited representatives of such employees or
representatives of any labor organization authorized to act for
such employees, concerning wages, salaries, hours, working
conditions and pension or retirement provisions; provided,
nothing herein shall be construed to permit hours of labor in
excess of those provided by law or to permit working conditions
prohibited by law. In case of dispute over wages, salaries,
hours, working conditions, or pension or retirement provisions
the Board may arbitrate any question or questions and may agree
with such accredited representatives or labor organization
that the decision of a majority of any arbitration board shall
be final, provided each party shall agree in advance to pay
half of the expense of such arbitration.

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No contract or agreement shall be made with any labor
organization, association, group or individual for the
employment of members of such organization, association, group
or individual for the construction, improvement, maintenance,
operation or administration of any property, plant or
facilities under the jurisdiction of the Authority, where such
organization, association, group or individual denies on the
ground of race, creed, color, sex, religion, physical or mental
handicap unrelated to ability, or national origin membership
and equal opportunities for employment to any citizen of
Illinois.
(b)(1) The provisions of this paragraph (b) apply to
collective bargaining agreements (including extensions and
amendments of existing agreements) entered into on or after
January 1, 1984.
(2) The Board shall deal with and enter into written
contracts with their employees, through accredited
representatives of such employees authorized to act for such
employees concerning wages, salaries, hours, working
conditions, and pension or retirement provisions about which a
collective bargaining agreement has been entered prior to the
effective date of this amendatory Act of 1983. Any such
agreement of the Authority shall provide that the agreement may
be reopened if the amended budget submitted pursuant to Section
2.18a of the Regional Transportation Authority Act is not
approved by the Board of the Regional Transportation Authority.

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The agreement may not include a provision requiring the payment
of wage increases based on changes in the Consumer Price Index.
The Board shall not have the authority to enter into collective
bargaining agreements with respect to inherent management
rights, which include such areas of discretion or policy as the
functions of the employer, standards of services, its overall
budget, the organizational structure and selection of new
employees and direction of personnel. Employers, however,
shall be required to bargain collectively with regard to policy
matters directly affecting wages, hours and terms and
conditions of employment, as well as the impact thereon upon
request by employee representatives. To preserve the rights of
employers and exclusive representatives which have established
collective bargaining relationships or negotiated collective
bargaining agreements prior to the effective date of this
amendatory Act of 1983, employers shall be required to bargain
collectively with regard to any matter concerning wages, hours
or conditions of employment about which they have bargained
prior to the effective date of this amendatory Act of 1983.
(3) The collective bargaining agreement may not include a
prohibition on the use of part-time operators on any service
operated by or funded by the Board, except where prohibited by
federal law.
(4) Within 30 days of the signing of any such collective
bargaining agreement, the Board shall determine the costs of
each provision of the agreement, prepare an amended budget

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incorporating the costs of the agreement, and present the
amended budget to the Chairman of the Board of the Regional
Transportation Authority for its approval under Section 4.11 of
the Regional Transportation Authority Act. The Chairman of the
Board of the Regional Transportation Authority may approve the
amended budget by an affirmative vote of 12 of its then
Directors. If the budget is not approved by the Chairman of the
Board of the Regional Transportation Authority, the agreement
may be reopened and its terms may be renegotiated. Any amended
budget which may be prepared following renegotiation shall be
presented to the Chairman of the Board of the Regional
Transportation Authority for his or her its approval as set
forth in Section 4.11 of the Regional Transportation Authority
Act in like manner.
(Source: P.A. 95-708, eff. 1-18-08.)
(70 ILCS 3605/30) (from Ch. 111 2/3, par. 330)
Sec. 30. Rule and regulations; fares. The Board shall make
all rules and regulations governing the operation of the
transportation system, shall determine all routings and change
the same whenever it is deemed advisable by the Board, subject
to the provisions of any ordinance granting rights to the
Authority. The Except as provided in Section 4.11(b)(5) of the
"Regional Transportation Authority Act", the Board shall fix
rates, fares and charges for transportation, provided that they

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shall be at all times sufficient in the aggregate to provide
revenues (a) for the payment of the interest on and principal
of all bonds, certificates and other obligations payable from
said revenues and to meet all other charges upon such revenues
as provided by any trust agreement executed by the Authority in
connection with the issuance of bonds or certificates under
this Act, (b) for the payment of all operating costs including
all charges which may be incurred pursuant to Sections 29 and
39 of this Act and all other costs and charges incidental to
the operation of the transportation system, (c) for the payment
of all costs and charges incurred pursuant to Sections 37 and
38 of this Act and any other costs and charges for acquisition,
installation, construction or for replacement or
reconstruction of equipment, structures or rights of way not
financed through issuance of bonds or certificates under
Section 12 of this Act, and (d) for any compensation required
to be paid to any municipality for the use of streets, subways
and other public ways. The Board may provide free
transportation within any municipality in and by which they are
employed for firemen and public health nurses, when in uniform,
and policemen when in uniform or, when not in uniform, upon
presentation of identification as policemen, and shall provide
free transportation to sworn law enforcement personnel of the
Cook County Sheriff's Department when in uniform or, when not
in uniform, upon presentation of identification as sworn law
enforcement personnel of the Cook County Sheriff's Department,

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and may provide free transportation for employees of the
Authority when in uniform or upon presentation of
identification as such employees, and may enter into agreements
with the United States Post Office Department for the
transportation of mail, and the payment of compensation to the
Authority in lieu of fares for the transportation of letter
carriers, when in uniform at all times.
The Board may also provide free transportation, or
transportation at reduced fares, to all or designated classes
of pupils in attendance at public schools of school districts
within or partly within the territorial limits of the
Authority, or in attendance at private schools offering grades
of instruction comparable to those offered in public schools,
under such conditions as shall be prescribed by the Board, and,
if otherwise authorized by law, the Board may contract with
public school boards and representatives of private schools,
for reimbursement of pupil transportation costs from public
funds.
(Source: P.A. 83-886.)
(70 ILCS 3605/34) (from Ch. 111 2/3, par. 334)
Sec. 34. Budget and Program. The Authority, subject to the
powers of the Regional Transportation Authority in Section 4.11
of the Regional Transportation Authority Act, shall control the
finances of the Authority. It shall by ordinance appropriate
money to perform the Authority's purposes and provide for

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payment of debts and expenses of the Authority. Each year the
Authority shall prepare and publish a comprehensive annual
budget and five-year capital program document, and a financial
plan for the 2 years thereafter describing the state of the
Authority and presenting for the forthcoming fiscal year and
the two following years the Authority's plans for such
operations and capital expenditures as it intends to undertake
and the means by which it intends to finance them. The proposed
budget, financial plan, and five-year capital program shall be
based on the Regional Transportation Authority's estimate of
funds to be made available to the Authority by or through the
Regional Transportation Authority and shall conform in all
respects to the requirements established by the Regional
Transportation Authority. The proposed budget, financial plan,
and five-year capital program shall contain a statement of the
funds estimated to be on hand at the beginning of the fiscal
year, the funds estimated to be received from all sources for
such year and the funds estimated to be on hand at the end of
such year. The proposed budget, financial plan, and five-year
capital program shall be available at no cost for public
inspection at the Authority's main office and at the Regional
Transportation Authority's main office at least 3 weeks prior
to any public hearing. Before the proposed budget, financial
plan, and five-year capital program are submitted to the
Regional Transportation Authority, the Authority shall hold at
least one public hearing thereon in each of the counties in

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which the Authority provides service. All Board members of the
Authority shall attend a majority of the public hearings unless
reasonable cause is given for their absence. After the public
hearings, the Board of the Authority shall hold at least one
meeting for consideration of the proposed program and budget
with the Cook County Board. After conducting such hearings and
holding such meetings and after making such changes in the
proposed budget, financial plan, and five-year capital program
as the Board deems appropriate, it shall adopt an annual budget
ordinance at least by November 15th preceding the beginning of
each fiscal year. The budget, financial plan, and five-year
capital program shall then be submitted to the Regional
Transportation Authority as provided in Section 4.11 of the
Regional Transportation Authority Act.
If In the event that the Chairman of the Board of the
Regional Transportation Authority determines that the budget,
financial plan, and five-year capital program do not meet the
standards of said Section 4.11, then the Board must submit to
the Authority an amended budget ordinance as set forth in
Section 4.11 of the Regional Transportation Authority Act. ,
the Board of the Authority shall make such changes as are
necessary to meet such requirements and adopt an amended budget
ordinance. The amended budget ordinance shall be resubmitted to
the Regional Transportation Authority pursuant to said Section
4.11. The ordinance shall appropriate such sums of money as are
deemed necessary to defray all necessary expenses and

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obligations of the Authority, specifying purposes and the
objects or programs for which appropriations are made and the
amount appropriated for each object or program. Additional
appropriations, transfers between items and other changes in
such ordinance which do not alter the basis upon which the
balanced budget determination was made by the Regional
Transportation Authority may be made from time to time by the
Board.
The budget shall:
(i) show a balance between (A) anticipated revenues
from all sources including operating subsidies and (B) the
costs of providing the services specified and of funding
any operating deficits or encumbrances incurred in prior
periods, including provision for payment when due of
principal and interest on outstanding indebtedness;
(ii) show cash balances including the proceeds of any
anticipated cash flow borrowing sufficient to pay with
reasonable promptness all costs and expenses as incurred;
(iii) provide for a level of fares or charges and
operating or administrative costs for the public
transportation provided by or subject to the jurisdiction
of the Board sufficient to allow the Board to meet its
required system generated revenue recovery ratio as
determined in accordance with subsection (a) of Section
4.11 of the Regional Transportation Authority Act;
(iv) be based upon and employ assumptions and

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projections which are reasonable and prudent;
(v) have been prepared in accordance with sound
financial practices as determined by the Board of the
Regional Transportation Authority;
(vi) meet such other financial, budgetary, or fiscal
requirements that the Board of the Regional Transportation
Authority may by rule or regulation establish; and
(vii) be consistent with the goals and objectives
adopted by the Regional Transportation Authority in the
Strategic Plan; and .
(viii) include specific line-items for revenues and
expenses.
The Board shall establish a fiscal operating year. At least
thirty days prior to the beginning of the first full fiscal
year after the creation of the Authority, and annually
thereafter, the Board shall cause to be prepared a tentative
budget which shall include all operation and maintenance
expense for the ensuing fiscal year. The tentative budget shall
be considered by the Board and, subject to any revision and
amendments as may be determined, shall be adopted prior to the
first day of the ensuing fiscal year as the budget for that
year. No expenditures for operations and maintenance in excess
of the budget shall be made during any fiscal year except by
the affirmative vote of at least five members of the Board. It
shall not be necessary to include in the annual budget any
statement of necessary expenditures for pensions or retirement

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annuities, or for interest or principal payments on bonds or
certificates, or for capital outlays, but it shall be the duty
of the Board to make provision for payment of same from
appropriate funds. The Board may not alter its fiscal year
without the prior approval of the Board of the Regional
Transportation Authority.
(Source: P.A. 95-708, eff. 1-18-08.)
Section 10. The Regional Transportation Authority Act is
amended by changing Sections 2.04, 3A.10, 3B.10, and 4.11 as
follows:
(70 ILCS 3615/2.04) (from Ch. 111 2/3, par. 702.04)
Sec. 2.04. Fares and Nature of Service.
(a) Whenever a Service Board provides any public
transportation by operating public transportation facilities,
the Service Board shall provide for the level and nature of
fares or charges to be made for such services, and the nature
and standards of public transportation to be so provided that
meet the goals and objectives adopted by the Authority in the
Strategic Plan. Provided, however that if, before the effective
date of this amendatory Act of the 97th General Assembly, the
Board adopts a budget and financial plan for a Service Board in
accordance with the provisions in Section 4.11(b)(5), the Board
may consistent with the terms of any purchase of service
contract provide for the level and nature of fares to be made

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for such services under the jurisdiction of that Service Board,
and the nature and standards of public transportation to be so
provided.
(b) Whenever a Service Board provides any public
transportation pursuant to grants made after June 30, 1975, to
transportation agencies for operating expenses (other than
with regard to experimental programs) or pursuant to any
purchase of service agreement, the purchase of service
agreement or grant contract shall provide for the level and
nature of fares or charges to be made for such services, and
the nature and standards of public transportation to be so
provided. A Service Board shall require all transportation
agencies with which it contracts, or from which it purchases
transportation services or to which it makes grants to provide
half fare transportation for their student riders if any of
such agencies provide for half fare transportation to their
student riders.
(c) In so providing for the fares or charges and the nature
and standards of public transportation, any purchase of service
agreements or grant contracts shall provide, among other
matters, for the terms or cost of transfers or interconnections
between different modes of transportation and different public
transportation agencies, schedules or routes of such service,
changes which may be made in such service, the nature and
condition of the facilities used in providing service, the
manner of collection and disposition of fares or charges, the

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records and reports to be kept and made concerning such
service, for interchangeable tickets or other coordinated or
uniform methods of collection of charges, and shall further
require that the transportation agency comply with any
determination made by the Board of the Authority under and
subject to the provisions of Section 2.12b of this Act. In
regard to any such service, the Authority and the Service
Boards shall give attention to and may undertake programs to
promote use of public transportation and to provide coordinated
ticket sales and passenger information. In the case of a grant
to a transportation agency which remains subject to Illinois
Commerce Commission supervision and regulation, the Service
Boards shall exercise the powers set forth in this Section in a
manner consistent with such supervision and regulation by the
Illinois Commerce Commission.
(Source: P.A. 95-708, eff. 1-18-08.)
(70 ILCS 3615/3A.10) (from Ch. 111 2/3, par. 703A.10)
Sec. 3A.10. Budget and Program. The Suburban Bus Board,
subject to the powers of the Authority in Section 4.11, shall
control the finances of the Division. It shall by ordinance
appropriate money to perform the Division's purposes and
provide for payment of debts and expenses of the Division. Each
year the Suburban Bus Board shall prepare and publish a
comprehensive annual budget and proposed five-year capital
program document, and a financial plan for the 2 years

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thereafter describing the state of the Division and presenting
for the forthcoming fiscal year and the 2 following years the
Suburban Bus Board's plans for such operations and capital
expenditures as it intends to undertake and the means by which
it intends to finance them. The proposed budget, financial
plan, and five-year capital program shall be based on the
Authority's estimate of funds to be made available to the
Suburban Bus Board by or through the Authority and shall
conform in all respects to the requirements established by the
Authority. The proposed budget, financial plan, and five-year
capital program shall contain a statement of the funds
estimated to be on hand at the beginning of the fiscal year,
the funds estimated to be received from all sources for such
year and the funds estimated to be on hand at the end of such
year. The fiscal year of the Division shall be the same as the
fiscal year of the Authority. Before the proposed budget,
financial plan, and five-year capital program are submitted to
the Authority, the Suburban Bus Board shall hold at least one
public hearing thereon in each of the counties in the
metropolitan region in which the Division provides service. The
Suburban Bus Board shall hold at least one meeting for
consideration of the proposed budget, financial plan, and
five-year capital program with the county board of each of the
several counties in the metropolitan region in which the
Division provides service. After conducting such hearings and
holding such meetings and after making such changes in the

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proposed budget, financial plan, and five-year capital program
as the Suburban Bus Board deems appropriate, it shall adopt an
annual budget ordinance at least by November 15 next preceding
the beginning of each fiscal year. The budget, financial plan,
and five-year capital program shall then be submitted to the
Authority as provided in Section 4.11. In the event that the
Chairman of the Board of the Authority determines that the
budget and financial plan do not meet the standards of Section
4.11, the Suburban Bus Board shall make such changes as are
necessary to meet such requirements and adopt an amended budget
ordinance. The amended budget ordinance shall be resubmitted to
the Authority pursuant to Section 4.11. The ordinance shall
appropriate such sums of money as are deemed necessary to
defray all necessary expenses and obligations of the Division,
specifying purposes and the objects or programs for which
appropriations are made and the amount appropriated for each
object or program. Additional appropriations, transfers
between items and other changes in such ordinance which do not
alter the basis upon which the balanced budget determination
was made by the Chairman of the Board of the Authority may be
made from time to time by the Suburban Bus Board.
The budget shall:
(i) show a balance between (A) anticipated revenues
from all sources including operating subsidies and (B) the
costs of providing the services specified and of funding
any operating deficits or encumbrances incurred in prior

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periods, including provision for payment when due of
principal and interest on outstanding indebtedness;
(ii) show cash balances including the proceeds of any
anticipated cash flow borrowing sufficient to pay with
reasonable promptness all costs and expenses as incurred;
(iii) provide for a level of fares or charges and
operating or administrative costs for the public
transportation provided by or subject to the jurisdiction
of the Suburban Bus Board sufficient to allow the Suburban
Bus Board to meet its required system generated revenues
recovery ratio and, beginning with the 2007 fiscal year,
its system generated ADA paratransit services revenue
recovery ratio;
(iv) be based upon and employ assumptions and
projections which are reasonable and prudent;
(v) have been prepared in accordance with sound
financial practices as determined by the Board of the
Authority;
(vi) meet such other uniform financial, budgetary, or
fiscal requirements that the Board of the Authority may by
rule or regulation establish; and
(vii) be consistent with the goals and objectives
adopted by the Regional Transportation Authority in the
Strategic Plan; and .
(viii) include specific line-items for revenues and
expenses.

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(Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08.)
(70 ILCS 3615/3B.10) (from Ch. 111 2/3, par. 703B.10)
Sec. 3B.10. Budget and Program. The Commuter Rail Board,
subject to the powers of the Authority in Section 4.11, shall
control the finances of the Division. It shall by ordinance
appropriate money to perform the Division's purposes and
provide for payment of debts and expenses of the Division. Each
year the Commuter Rail Board shall prepare and publish a
comprehensive annual budget and proposed five-year capital
program document, and a financial plan for the two years
thereafter describing the state of the Division and presenting
for the forthcoming fiscal year and the two following years the
Commuter Rail Board's plans for such operations and capital
expenditures as the Commuter Rail Board intends to undertake
and the means by which it intends to finance them. The proposed
budget, financial plan, and five-year capital program shall be
based on the Authority's estimate of funds to be made available
to the Commuter Rail Board by or through the Authority and
shall conform in all respects to the requirements established
by the Authority. The proposed budget, financial plan, and
five-year capital program shall contain a statement of the
funds estimated to be on hand at the beginning of the fiscal
year, the funds estimated to be received from all sources for
such year and the funds estimated to be on hand at the end of
such year. The fiscal year of the Division shall be the same as

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the fiscal year of the Authority. Before the proposed budget,
financial plan, and five-year capital program are submitted to
the Authority, the Commuter Rail Board shall hold at least one
public hearing thereon in each of the counties in the
metropolitan region in which the Division provides service. The
Commuter Rail Board shall hold at least one meeting for
consideration of the proposed budget, financial plan, and
five-year capital plan with the county board of each of the
several counties in the metropolitan region in which the
Division provides service. After conducting such hearings and
holding such meetings and after making such changes in the
proposed budget, financial plan, and five-year capital plan as
the Commuter Rail Board deems appropriate, the board shall
adopt its annual budget ordinance at least by November 15 next
preceding the beginning of each fiscal year. The budget,
financial plan, and five-year capital program shall then be
submitted to the Authority as provided in Section 4.11. In the
event that the Chairman of the Board of the Authority
determines that the budget and program, and financial plan do
not meet the standards of Section 4.11, the Commuter Rail Board
shall make such changes as are necessary to meet such
requirements and adopt an amended budget ordinance. The amended
budget ordinance shall be resubmitted to the Authority pursuant
to Section 4.11. The ordinance shall appropriate such sums of
money as are deemed necessary to defray all necessary expenses
and obligations of the Division, specifying purposes and the

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objects or programs for which appropriations are made and the
amount appropriated for each object or program. Additional
appropriations, transfers between items and other changes in
such ordinance which do not alter the basis upon which the
balanced budget determination was made by the Chairman of the
Board of the Authority may be made from time to time by the
Commuter Rail Board.
The budget shall:
(i) show a balance between (A) anticipated revenues
from all sources including operating subsidies and (B) the
costs of providing the services specified and of funding
any operating deficits or encumbrances incurred in prior
periods, including provision for payment when due of
principal and interest on outstanding indebtedness;
(ii) show cash balances including the proceeds of any
anticipated cash flow borrowing sufficient to pay with
reasonable promptness all costs and expenses as incurred;
(iii) provide for a level of fares or charges for the
public transportation provided by or subject to the
jurisdiction of such Commuter Rail Board sufficient to
allow the Commuter Rail Board to meet its required system
generated revenue recovery ratio;
(iv) be based upon and employ assumptions and
projections which the Board of the Authority finds to be
reasonable and prudent;
(v) have been prepared in accordance with sound

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financial practices as determined by the Board of the
Authority;
(vi) meet such other uniform financial, budgetary, or
fiscal requirements that the Board of the Authority may by
rule or regulation establish; and
(vii) be consistent with the goals and objectives
adopted by the Regional Transportation Authority in the
Strategic Plan; and .
(viii) include specific line-items for revenues and
expenses.
(Source: P.A. 95-708, eff. 1-18-08.)
(70 ILCS 3615/4.11) (from Ch. 111 2/3, par. 704.11)
Sec. 4.11. Budget Review Powers.
(a) Based upon estimates which shall be given to the
Authority by the Director of the Governor's Office of
Management and Budget (formerly Bureau of the Budget) of the
receipts to be received by the Authority from the taxes imposed
by the Authority and the authorized estimates of amounts to be
available from State and other sources to the Service Boards,
and the times at which such receipts and amounts will be
available, the Board shall, not later than the next preceding
September 15th prior to the beginning of the Authority's next
fiscal year, advise each Service Board of the amounts estimated
by the Board to be available for such Service Board during such
fiscal year and the two following fiscal years and the times at

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which such amounts will be available. The Board shall, at the
same time, also advise each Service Board of its required
system generated revenues recovery ratio for the next fiscal
year which shall be the percentage of the aggregate costs of
providing public transportation by or under jurisdiction of
that Service Board which must be recovered from system
generated revenues. The Board shall, at the same time,
beginning with the 2007 fiscal year, also advise each Service
Board that provides ADA paratransit services of its required
system generated ADA paratransit services revenue recovery
ratio for the next fiscal year which shall be the percentage of
the aggregate costs of providing ADA paratransit services by or
under jurisdiction of that Service Board which must be
recovered from fares charged for such services, except that
such required system generated ADA paratransit services
revenue recovery ratio shall not exceed the minimum percentage
established pursuant to Section 4.01(b)(ii) of this Act. In
determining a Service Board's system generated revenue
recovery ratio, the Board shall consider the historical system
generated revenues recovery ratio for the services subject to
the jurisdiction of that Service Board. The Board shall not
increase a Service Board's system generated revenues recovery
ratio for the next fiscal year over such ratio for the current
fiscal year disproportionately or prejudicially to increases
in such ratios for other Service Boards. The Board may, by
ordinance, provide that (i) the cost of research and

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development projects in the fiscal year beginning January 1,
1986 and ending December 31, 1986 conducted pursuant to Section
2.09 of this Act, (ii) the costs for passenger security, and
(iii) expenditures of amounts granted to a Service Board from
the Innovation, Coordination, and Enhancement Fund for
operating purposes may be exempted from the farebox recovery
ratio or the system generated revenues recovery ratio of the
Chicago Transit Authority, the Suburban Bus Board, and the
Commuter Rail Board, or any of them. During fiscal years 2008
through 2012, the Board may also allocate the exemption of
$200,000,000 and the reducing amounts of costs provided by this
amendatory Act of the 95th General Assembly from the farebox
recovery ratio or system generated revenues recovery ratio of
each Service Board.
(b)(1) Not later than the next preceding November 15 prior
to the commencement of such fiscal year, each Service Board
shall submit to the Authority its proposed budget for such
fiscal year and its proposed financial plan for the two
following fiscal years. Such budget and financial plan shall
(i) be prepared in the format, follow the financial and
budgetary practices, and be based on any assumptions and
projections required by the Authority and (ii) not project or
assume a receipt of revenues from the Authority in amounts
greater than those set forth in the estimates provided by the
Authority pursuant to subsection (a) of this Section.
(2) The Board shall review the proposed budget and two-year

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financial plan submitted by each Service Board. The Board shall
make a recommendation to the Chairman of the Board that the
Chairman approve or disapprove the budget and plan. The budget
and plan may not be considered approved until the budget and
plan have the approval of the Chairman of the Board. The Board
shall recommend the approval of approve the budget and two-year
financial plan of a Service Board if:
(i) such budget and plan show a balance between (A)
anticipated revenues from all sources including operating
subsidies and (B) the costs of providing the services
specified and of funding any operating deficits or
encumbrances incurred in prior periods, including
provision for payment when due of principal and interest on
outstanding indebtedness;
(ii) such budget and plan show cash balances including
the proceeds of any anticipated cash flow borrowing
sufficient to pay with reasonable promptness all costs and
expenses as incurred;
(iii) such budget and plan provide for a level of fares
or charges and operating or administrative costs for the
public transportation provided by or subject to the
jurisdiction of such Service Board sufficient to allow the
Service Board to meet its required system generated revenue
recovery ratio and, beginning with the 2007 fiscal year,
system generated ADA paratransit services revenue recovery
ratio;

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(iv) such budget and plan are based upon and employ
assumptions and projections which are reasonable and
prudent;
(v) such budget and plan have been prepared in
accordance with sound financial practices as determined by
the Board;
(vi) such budget and plan meet such other financial,
budgetary, or fiscal requirements that the Board may by
rule or regulation establish; and
(vii) such budget and plan are consistent with the
goals and objectives adopted by the Authority in the
Strategic Plan; and .
(viii) such budget and plan include specific
line-items for revenues and expenses.
(3) (Blank).
(4) If the Chairman of the Board approves the budget and
plan, he or she shall sign it. The Chairman of the Board may
reduce or veto any item of appropriations in the budget or plan
and shall return the item vetoed or reduced with his or her
objections to the Board. A copy of the veto shall also be
delivered to the Service Board that submitted the budget or
plan for approval. Portions of the budget or plan not reduced
or vetoed shall be considered approved. If, within 30 calendar
days after the veto has been delivered to the Board and the
appropriate Service Board, the Board restores an item that has
been reduced or overrides the veto of an item by a record vote

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of 14 members, the item shall be considered approved. If a
reduced item is not restored, then it shall be considered
approved in the reduced amount.
If Unless the Chairman of the Board by an affirmative vote
of 12 of the then Directors determines that the budget and
financial plan of a Service Board does not meet meets the
criteria specified in clauses (i) through (vii) of subparagraph
(2) of this paragraph (b), the Board shall withhold from that
Service Board 25% of the cash proceeds of taxes imposed by the
Authority under Section 4.03 and Section 4.03.1 and received
after February 1 and 25% of the amounts transferred to the
Authority from the Public Transportation Fund under Section
4.09(a) (but not including Section 4.09(a)(3)(iv)) after
February 1 that the Board has estimated to be available to that
Service Board under Section 4.11(a). Such funding shall be
released to the Service Board only upon approval of a budget
and financial plan under this Section or adoption of a budget
and financial plan on behalf of the Service Board by the
Authority.
(5) (Blank). If the Board has not found that the budget and
financial plan of a Service Board meets the criteria specified
in clauses (i) through (vii) of subparagraph (2) of this
paragraph (b), the Board, by the affirmative vote of at least
12 of its then Directors, shall adopt a budget and financial
plan meeting such criteria for that Service Board.
(c)(1) If the Board shall at any time have received a

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revised estimate, or revises any estimate the Board has made,
pursuant to this Section of the receipts to be collected by the
Authority which, in the judgment of the Board, requires a
change in the estimates on which the budget of any Service
Board is based, the Board shall advise the affected Service
Board of such revised estimates, and such Service Board shall
within 30 days after receipt of such advice submit a revised
budget incorporating such revised estimates. If the revised
estimates require, in the judgment of the Board, that the
system generated revenues recovery ratio of one or more Service
Boards be revised in order to allow the Authority to meet its
required ratio, the Board shall advise any such Service Board
of its revised ratio and such Service Board shall within 30
days after receipt of such advice submit a revised budget
incorporating such revised estimates or ratio.
(2) Each Service Board shall, within such period after the
end of each fiscal quarter as shall be specified by the Board,
report to the Authority its financial condition and results of
operations and the financial condition and results of
operations of the public transportation services subject to its
jurisdiction, as at the end of and for such quarter. If in the
judgment of the Board such condition and results are not
substantially in accordance with such Service Board's budget
for such period, the Board shall so advise such Service Board
and such Service Board shall within the period specified by the
Board submit a revised budget incorporating such results.

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(2.5) The Board shall make a recommendation to the Chairman
of the Board that the Chairman approve or disapprove the
revised budget. The revised budget may not be considered
approved until it has the approval of the Chairman of the
Board. If the Chairman of the Board approves the revised
budget, he or she shall sign it. The Chairman of the Board may
reduce or veto any item of appropriations in the revised budget
and shall return the item vetoed or reduced with his or her
objections to the Board. A copy of the veto shall also be
delivered to the Service Board that submitted the revised
budget for approval. Portions of the revised budget not reduced
or vetoed shall be considered approved. If, within 30 calendar
days after the veto has been delivered to the Board and the
appropriate Service Board, the Board restores an item that has
been reduced or overrides the veto of an item by a record vote
of 14 members, the item shall be considered approved. If a
reduced item is not restored, then it shall be considered
approved in the reduced amount.
(3) If the Chairman of the Board determines Board shall
determine that a revised budget submitted by a Service Board
pursuant to subparagraph (1) or (2) of this paragraph (c) does
not meet the criteria specified in clauses (i) through (vii) of
subparagraph (2) of paragraph (b) of this Section, the Board
shall withhold from that Service Board 25% of the cash proceeds
of taxes imposed by the Authority under Section 4.03 or 4.03.1
and received by the Authority after February 1 and 25% of the

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amounts transferred to the Authority from the Public
Transportation Fund under Section 4.09(a) (but not including
Section 4.09(a)(3)(iv)) after February 1 that the Board has
estimated to be available to that Service Board under Section
4.11(a). If the Service Board submits a revised financial plan
and budget which plan and budget shows that the criteria will
be met within a four quarter period, the Board shall release
any such withheld funds to the Service Board. The Board by the
affirmative vote of at least 12 of its then Directors may
require a Service Board to submit a revised financial plan and
budget which shows that the criteria will be met in a time
period less than four quarters.
(d) All budgets and financial plans, financial statements,
audits and other information presented to the Authority
pursuant to this Section or which may be required by the Board
to permit it to monitor compliance with the provisions of this
Section shall be prepared and presented in such manner and
frequency and in such detail as shall have been prescribed by
the Board, shall be prepared on both an accrual and cash flow
basis as specified by the Board, shall present such information
as the Authority shall prescribe that fairly presents the
condition of any pension plan or trust for health care benefits
with respect to retirees established by the Service Board and
describes the plans of the Service Board to meet the
requirements of Sections 4.02a and 4.02b, and shall identify
and describe the assumptions and projections employed in the

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preparation thereof to the extent required by the Board. If the
Executive Director certifies that a Service Board has not
presented its budget and two-year financial plan in conformity
with the rules adopted by the Authority under the provisions of
Section 4.01(f) and this subsection (d), and such certification
is accepted by the affirmative vote of at least 12 of the then
Directors of the Authority, the Authority shall not distribute
to that Service Board any funds for operating purposes in
excess of the amounts distributed for such purposes to the
Service Board in the previous fiscal year. A Except when the
Board adopts a budget and a financial plan for a Service Board
under paragraph (b)(5), a Service Board shall provide for such
levels of transportation services and fares or charges therefor
as it deems appropriate and necessary in the preparation of a
budget and financial plan meeting the criteria set forth in
clauses (i) through (vii) of subparagraph (2) of paragraph (b)
of this Section. The Authority shall have access to and the
right to examine and copy all books, documents, papers,
records, or other source data of a Service Board relevant to
any information submitted pursuant to this Section.
(e) Whenever this Section requires the Board to make
determinations with respect to estimates, budgets or financial
plans, or rules or regulations with respect thereto such
determinations shall be made upon the affirmative vote of at
least 12 of the then Directors and shall be incorporated in a
written report of the Board and such report shall be submitted

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within 10 days after such determinations are made to the
Governor, the Mayor of Chicago (if such determinations relate
to the Chicago Transit Authority), and the Auditor General of
Illinois.
(Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08.)
Section 99. Effective date. This Act takes effect January
1, 2012.