Madigan Indicates Support for Real Estate Transfer Tax

In today's Chicago Tribune, Speaker Madigan indicated that he may support a real estate transfer tax. Please see the story below. What are your thoughts on this?

CTA and Blagojevich talk possible funding
Governor hints he's open to options for state aid

By Jon Hilkevitch and Ray Long
Tribune staff reporters
June 14, 2007

Gov. Rod Blagojevich signaled he may be ready to address the transit funding crisis facing the Chicago area by meeting Wednesday with the Chicago Transit Authority's top two officials.The positive development prompted the CTA board to postpone a vote on a contingency plan of service cuts and fare increases, to be implemented in mid-September if no new state transit funding is provided. The board did approve the elimination of 27 administrative positions, part of $18.1 million in previously announced cost savings.The governor's invitation to meet came after Blagojevich made it clear his spending priorities are expanding health care and improving education. The governor provided no new transit funding in his proposed state budget, and he threatened to veto a regional sales-tax increase to help fund the CTA, Metra and Pace, which face a combined $226 million operating deficit for 2007.Blagojevich's meeting in Springfield included CTA Chairwoman Carole Brown, CTA President Ron Huberman and the legislative leadership -- House Speaker Michael Madigan, House Minority Leader Tom Cross, Senate President Emil Jones and Senate Minority Leader Frank Watson.Brown and Huberman made a presentation detailing the transit agency's approximately $100 million operating shortfall and offered some partial self-help solutions such as reforming the CTA's employee pension fund and paring administrative costs.Deputy Gov. Sheila Nix said after the meeting that Blagojevich wants to give $100 million to the CTA to help stave off service cuts and proposed closing "corporate loopholes" to raise the money.But House Speaker Michael Madigan (D-Chicago) said Blagojevich's proposal relies on ideas that lawmakers have rejected.Nix said the governor is open to other possibilities.Madigan said he would support the regional sales tax increase and a real estate transfer tax in Chicago that transit agency officials have proposed but does not expect to call the legislation for a vote in the House as long as the governor stands by his pledge to veto the measure.While no immediate breakthrough was expected, CTA officials were encouraged."They [Brown and Huberman] thought it was a good meeting. The fact there was a meeting was a good thing," said Carl Lingenfelter, Brown's chief of staff.Without about $100 million in new funding, Huberman has said the CTA will be forced to eliminate service on 63 bus routes, suspend the Purple Line/Evanston Express and Yellow Line rail routes and raise fares to as high as $3.25 per ride.Brown and Huberman made it clear during the meeting Wednesday that they weren't looking for a short-term bailout, officials said. They stressed that even larger public subsidies would be needed next year and beyond if the state failed to address structural budget issues.The CTA board met after it concluded the last of four public hearings on the planned service cuts and fare increases.About 120 people testified, many blaming the CTA's problems on poor management and on rude bus drivers and train operators.CTA rider Rudolph Ochoa complained that he could not afford the proposed fare increase in the monthly pass."I wish you would wake up and smell the Folger's," Ochoa told the board.