“According to reliable sources, the deal involves the Regional Transportation Authority issuing bonds for capital projects that would be funneled to the CTA. That would allow the CTA to shift some federal capital funds into its cash-short operating budget, thereby avoiding the necessity to hike fares. As part of the deal, the state reportedly would help the CTA pay debt service on the RTA funds for at least a couple of years. Other monies would go to Pace, which has had trouble financing its para-transit operation. […] If the deal comes about as promised, the CTA would not as threatened raise most fares a quarter — for instance, all el rides would cost $3 — but would go ahead with about $90 million in service cuts.”

— Greg Hinz Blog | Crain’s Chicago Business

via sexartandpolitics: I’ll be amazed if the CTA makes it out of the recession alive.