93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4613

 

Introduced 02/04/04, by Karen May

 

SYNOPSIS AS INTRODUCED:
 
70 ILCS 3615/4.11   from Ch. 111 2/3, par. 704.11

    Amends the Regional Transportation Authority Act. Provides that, for the fiscal years beginning in 2004 and thereafter, all expenses incurred by a Service Board related to complimentary paratransit service to ADA paratransit-eligible individuals shall be exempted from the farebox recovery ratio or the system-generated revenues recovery ratio of the Service Board and the system-generated revenues recovery ratio of the Authority.


LRB093 20878 RCE 46828 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4613 LRB093 20878 RCE 46828 b

1     AN ACT concerning public transportation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Regional Transportation Authority Act is
5 amended by changing Section 4.11 as follows:
 
6     (70 ILCS 3615/4.11)  (from Ch. 111 2/3, par. 704.11)
7     Sec. 4.11. Budget Review Powers.
8     (a) The provisions of this Section shall only be applicable
9 to financial periods beginning after December 31, 1983. The
10 Transition Board shall adopt a timetable governing the
11 certification of estimates and any submissions required under
12 this Section for fiscal year 1984 which shall control over the
13 provisions of this Act. Based upon estimates which shall be
14 given to the Authority by the Director of the Illinois
15 Governor's Office of Management and Budget (formerly Bureau of
16 the Budget) of the receipts to be received by the Authority
17 from the taxes imposed by the Authority and the authorized
18 estimates of amounts to be available from State and other
19 sources to the Service Boards, and the times at which such
20 receipts and amounts will be available, the Board shall, not
21 later than the next preceding September 15th prior to the
22 beginning of the Authority's next fiscal year, advise each
23 Service Board of the amounts estimated by the Board to be
24 available for such Service Board during such fiscal year and
25 the two following fiscal years and the times at which such
26 amounts will be available. The Board shall, at the same time,
27 also advise each Service Board of its required system generated
28 revenues recovery ratio for the next fiscal year which shall be
29 the percentage of the aggregate costs of providing public
30 transportation by or under jurisdiction of that Service Board
31 which must be recovered from system generated revenues. In
32 determining a Service Board's system generated revenue

 

 

HB4613 - 2 - LRB093 20878 RCE 46828 b

1 recovery ratio, the Board shall consider the historical system
2 generated revenues recovery ratio for the services subject to
3 the jurisdiction of that Service Board. The Board shall not
4 increase a Service Board's system generated revenues recovery
5 ratio for the next fiscal year over such ratio for the current
6 fiscal year disproportionately or prejudicially to increases
7 in such ratios for other Service Boards. The Board may, by
8 ordinance, provide that (i) the cost of research and
9 development projects in the fiscal year beginning January 1,
10 1986 and ending December 31, 1986 conducted pursuant to Section
11 2.09 of this Act, and (ii) up to $5,000,000 annually of the
12 costs for passenger security, may be exempted from the farebox
13 recovery ratio or the system generated revenues recovery ratio
14 of the Chicago Transit Authority, the Suburban Bus Board, and
15 the Commuter Rail Board, or any of them. For the fiscal year
16 beginning January 1, 1986 and ending December 31, 1986, and for
17 the fiscal year beginning January 1, 1987 and ending December
18 31, 1987, the Board shall, by ordinance, provide that: (1) the
19 amount of a grant, pursuant to Section 2705-310 of the
20 Department of Transportation Law (20 ILCS 2705/2705-310), from
21 the Department of Transportation for the cost of services for
22 the mobility limited provided by the Chicago Transit Authority,
23 and (2) the amount of a grant, pursuant to Section 2705-310 of
24 the Department of Transportation Law (20 ILCS 2705/2705-310),
25 from the Department of Transportation for the cost of services
26 for the mobility limited by the Suburban Bus Board or the
27 Commuter Rail Board, be exempt from the farebox recovery ratio
28 or the system generated revenues recovery ratio. For the fiscal
29 years beginning in 2004 and thereafter, all expenses incurred
30 by a Service Board related to the complimentary paratransit
31 service, as required by 49 CFR 37.121 through 49 CFR 37.133, to
32 ADA paratransit-eligible individuals shall be exempted from
33 the farebox recovery or the system-generated revenues recovery
34 ratio of the Service Board and the system-generated revenues
35 recovery ratio of the Authority.
36     (b)(1) Not later than the next preceding November 15 prior

 

 

HB4613 - 3 - LRB093 20878 RCE 46828 b

1 to the commencement of such fiscal year, each Service Board
2 shall submit to the Authority its proposed budget for such
3 fiscal year and its proposed financial plan for the two
4 following fiscal years. Such budget and financial plan shall
5 not project or assume a receipt of revenues from the Authority
6 in amounts greater than those set forth in the estimates
7 provided by the Authority pursuant to subsection (a) of this
8 Section.
9     (2) The Board shall review the proposed budget and
10 financial plan submitted by each Service Board, and shall adopt
11 a consolidated budget and financial plan. The Board shall
12 approve the budget and plan if:
13         (i) the Board has approved the proposed budget and cash
14     flow plan for such fiscal year of each Service Board,
15     pursuant to the conditions set forth in clauses (ii)
16     through (vii) of this paragraph;
17         (ii) such budget and plan show a balance between (A)
18     anticipated revenues from all sources including operating
19     subsidies and (B) the costs of providing the services
20     specified and of funding any operating deficits or
21     encumbrances incurred in prior periods, including
22     provision for payment when due of principal and interest on
23     outstanding indebtedness;
24         (iii) such budget and plan show cash balances including
25     the proceeds of any anticipated cash flow borrowing
26     sufficient to pay with reasonable promptness all costs and
27     expenses as incurred;
28         (iv) such budget and plan provide for a level of fares
29     or charges and operating or administrative costs for the
30     public transportation provided by or subject to the
31     jurisdiction of such Service Board sufficient to allow the
32     Service Board to meet its required system generated revenue
33     recovery ratio;
34         (v) such budget and plan are based upon and employ
35     assumptions and projections which are reasonable and
36     prudent;

 

 

HB4613 - 4 - LRB093 20878 RCE 46828 b

1         (vi) such budget and plan have been prepared in
2     accordance with sound financial practices as determined by
3     the Board; and
4         (vii) such budget and plan meet such other financial,
5     budgetary, or fiscal requirements that the Board may by
6     rule or regulation establish.
7     (3) In determining whether the budget and financial plan
8 provide a level of fares or charges sufficient to allow a
9 Service Board to meet its required system generated revenue
10 recovery ratio under clause (iv) in subparagraph (2), the Board
11 shall allow a Service Board to carry over cash from farebox
12 revenues to subsequent fiscal years.
13     (4) Unless the Board by an affirmative vote of 9 of the
14 then Directors determines that the budget and financial plan of
15 a Service Board meets the criteria specified in clauses (ii)
16 through (vii) of subparagraph (2) of this paragraph (b), the
17 Board shall not release to that Service Board any funds for the
18 periods covered by such budget and financial plan except for
19 the proceeds of taxes imposed by the Authority under Section
20 4.03 which are allocated to the Service Board under Section
21 4.01.
22     (5) If the Board has not found that the budget and
23 financial plan of a Service Board meets the criteria specified
24 in clauses (i) through (vii) of subparagraph (2) of this
25 paragraph (b), the Board shall, five working days after the
26 start of the Service Board's fiscal year adopt a budget and
27 financial plan meeting such criteria for that Service Board.
28     (c)(1) If the Board shall at any time have received a
29 revised estimate, or revises any estimate the Board has made,
30 pursuant to this Section of the receipts to be collected by the
31 Authority which, in the judgment of the Board, requires a
32 change in the estimates on which the budget of any Service
33 Board is based, the Board shall advise the affected Service
34 Board of such revised estimates, and such Service Board shall
35 within 30 days after receipt of such advice submit a revised
36 budget incorporating such revised estimates. If the revised

 

 

HB4613 - 5 - LRB093 20878 RCE 46828 b

1 estimates require, in the judgment of the Board, that the
2 system generated revenues recovery ratio of one or more Service
3 Boards be revised in order to allow the Authority to meet its
4 required ratio, the Board shall advise any such Service Board
5 of its revised ratio and such Service Board shall within 30
6 days after receipt of such advice submit a revised budget
7 incorporating such revised estimates or ratio.
8     (2) Each Service Board shall, within such period after the
9 end of each fiscal quarter as shall be specified by the Board,
10 report to the Authority its financial condition and results of
11 operations and the financial condition and results of
12 operations of the public transportation services subject to its
13 jurisdiction, as at the end of and for such quarter. If in the
14 judgment of the Board such condition and results are not
15 substantially in accordance with such Service Board's budget
16 for such period, the Board shall so advise such Service Board
17 and such Service Board shall within the period specified by the
18 Board submit a revised budget incorporating such results.
19     (3) If the Board shall determine that a revised budget
20 submitted by a Service Board pursuant to subparagraph (1) or
21 (2) of this paragraph (c) does not meet the criteria specified
22 in clauses (ii) through (vii) of subparagraph (2) of paragraph
23 (b) of this Section, the Board shall not release any monies to
24 that Service Board except the proceeds of taxes imposed by the
25 Authority under Section 4.03 or 4.03.1 which are allocated to
26 the Service Board under Section 4.01. If the Service Board
27 submits a revised financial plan and budget which plan and
28 budget shows that the criteria will be met within a four
29 quarter period, the Board shall continue to release funds to
30 the Service Board. The Board by a 9 vote of its then Directors
31 may require a Service Board to submit a revised financial plan
32 and budget which shows that the criteria will be met in a time
33 period less than four quarters.
34     (d) All budgets and financial plans, financial statements,
35 audits and other information presented to the Authority
36 pursuant to this Section or which may be required by the Board

 

 

HB4613 - 6 - LRB093 20878 RCE 46828 b

1 to permit it to monitor compliance with the provisions of this
2 Section shall be prepared and presented in such manner and
3 frequency and in such detail as shall have been prescribed by
4 the Board, shall be prepared on both an accrual and cash flow
5 basis as specified by the Board, and shall identify and
6 describe the assumptions and projections employed in the
7 preparation thereof to the extent required by the Board. Except
8 when the Board adopts a budget and a financial plan for a
9 Service Board under paragraph (b)(5), a Service Board shall
10 provide for such levels of transportation services and fares or
11 charges therefor as it deems appropriate and necessary in the
12 preparation of a budget and financial plan meeting the criteria
13 set forth in clauses (ii) through (vii) of subparagraph (2) of
14 paragraph (b) of this Section. The Board shall have access to
15 and the right to examine and copy all books, documents, papers,
16 records, or other source data of a Service Board relevant to
17 any information submitted pursuant to this Section.
18     (e) Whenever this Section requires the Board to make
19 determinations with respect to estimates, budgets or financial
20 plans, or rules or regulations with respect thereto such
21 determinations shall be made upon the affirmative vote of at
22 least 9 of the then Directors and shall be incorporated in a
23 written report of the Board and such report shall be submitted
24 within 10 days after such determinations are made to the
25 Governor, the Mayor of Chicago (if such determinations relate
26 to the Chicago Transit Authority), and the Auditor General of
27 Illinois.
28 (Source: P.A. 91-239, eff. 1-1-00; revised 8-23-03.)