Metra fares hold steady for 2022

Metra’s proposed $900 million operating budget for 2022 has no fare increases but requires an additional $93 million in federal funding to cover a shortfall, as ridership remains stalled at less than a third of pre-pandemic levels.

Introduced at a board meeting Wednesday, the proposed budget projects ridership to gradually increase from 25% of pre-pandemic levels to about 35% by the end of 2022 — a slower recovery than previously projected — leaving a funding gap that could last for years.

“Metra’s past estimates have proven to be too optimistic and have been unfavorably impacted by both delays in expected return (to in-person work) as well as flare-ups of new COVID strains, which is why we are being cautious with our budget assumption,” said Alan Ochab, Metra’s acting chief financial officer.

Metra, which operates 11 rail lines across six counties, has seen ridership plunge as remote working remains the norm for many commuters during the pandemic. The rail service’s operating budget is funded equally by ridership fares and a regional sales tax.

The proposed $900 million budget projects $146.4 million from fares, $458.8 million in sales tax revenues and $202 million in previously allocated federal relief funds.

Metra is requesting an additional $92.8 million from President Joe Biden’s $1.9 trillion American Rescue Plan from the Regional Transportation Authority, which is distributing the funds, Ochab said.

Metra faces a $503 million budget shortfall over the next three years, as ridership is expected to gradually recover to 80% of pre-pandemic levels by the end of 2024, Ochab said.

The proposed 2022 budget represents a 16% increase over actual expenses this year, with Metra currently operating at about 80% of its normal capacity. The biggest driver of the increased budget for 2022 is a projected increased in service.