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Full Text of SB1725  97th General Assembly

SB1725 97TH GENERAL ASSEMBLY

  
  

 


 
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

 

SB1725LRB097 00069 RLJ 40075 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Metropolitan Transit Authority Act is
5amended by changing Sections 28a, 30, and 34 as follows:
 
6    (70 ILCS 3605/28a)  (from Ch. 111 2/3, par. 328a)
7    Sec. 28a. Contracts with labor organizations; collective
8bargaining agreements.
9    (a) The Board may deal with and enter into written
10contracts with the employees of the Authority through
11accredited representatives of such employees or
12representatives of any labor organization authorized to act for
13such employees, concerning wages, salaries, hours, working
14conditions and pension or retirement provisions; provided,
15nothing herein shall be construed to permit hours of labor in
16excess of those provided by law or to permit working conditions
17prohibited by law. In case of dispute over wages, salaries,
18hours, working conditions, or pension or retirement provisions
19the Board may arbitrate any question or questions and may agree
20with such accredited representatives or labor organization
21that the decision of a majority of any arbitration board shall
22be final, provided each party shall agree in advance to pay
23half of the expense of such arbitration.

 

 

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1    No contract or agreement shall be made with any labor
2organization, association, group or individual for the
3employment of members of such organization, association, group
4or individual for the construction, improvement, maintenance,
5operation or administration of any property, plant or
6facilities under the jurisdiction of the Authority, where such
7organization, association, group or individual denies on the
8ground of race, creed, color, sex, religion, physical or mental
9handicap unrelated to ability, or national origin membership
10and equal opportunities for employment to any citizen of
11Illinois.
12    (b)(1) The provisions of this paragraph (b) apply to
13collective bargaining agreements (including extensions and
14amendments of existing agreements) entered into on or after
15January 1, 1984.
16    (2) The Board shall deal with and enter into written
17contracts with their employees, through accredited
18representatives of such employees authorized to act for such
19employees concerning wages, salaries, hours, working
20conditions, and pension or retirement provisions about which a
21collective bargaining agreement has been entered prior to the
22effective date of this amendatory Act of 1983. Any such
23agreement of the Authority shall provide that the agreement may
24be reopened if the amended budget submitted pursuant to Section
252.18a of the Regional Transportation Authority Act is not
26approved by the Board of the Regional Transportation Authority.

 

 

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1The agreement may not include a provision requiring the payment
2of wage increases based on changes in the Consumer Price Index.
3The Board shall not have the authority to enter into collective
4bargaining agreements with respect to inherent management
5rights, which include such areas of discretion or policy as the
6functions of the employer, standards of services, its overall
7budget, the organizational structure and selection of new
8employees and direction of personnel. Employers, however,
9shall be required to bargain collectively with regard to policy
10matters directly affecting wages, hours and terms and
11conditions of employment, as well as the impact thereon upon
12request by employee representatives. To preserve the rights of
13employers and exclusive representatives which have established
14collective bargaining relationships or negotiated collective
15bargaining agreements prior to the effective date of this
16amendatory Act of 1983, employers shall be required to bargain
17collectively with regard to any matter concerning wages, hours
18or conditions of employment about which they have bargained
19prior to the effective date of this amendatory Act of 1983.
20    (3) The collective bargaining agreement may not include a
21prohibition on the use of part-time operators on any service
22operated by or funded by the Board, except where prohibited by
23federal law.
24    (4) Within 30 days of the signing of any such collective
25bargaining agreement, the Board shall determine the costs of
26each provision of the agreement, prepare an amended budget

 

 

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1incorporating the costs of the agreement, and present the
2amended budget to the Chairman of the Board of the Regional
3Transportation Authority for its approval under Section 4.11 of
4the Regional Transportation Authority Act. The Chairman of the
5Board of the Regional Transportation Authority may approve the
6amended budget by an affirmative vote of 12 of its then
7Directors. If the budget is not approved by the Chairman of the
8Board of the Regional Transportation Authority, the agreement
9may be reopened and its terms may be renegotiated. Any amended
10budget which may be prepared following renegotiation shall be
11presented to the Chairman of the Board of the Regional
12Transportation Authority for his or her its approval as set
13forth in Section 4.11 of the Regional Transportation Authority
14Act in like manner.
15    
16(Source: P.A. 95-708, eff. 1-18-08.)
 
17    (70 ILCS 3605/30)  (from Ch. 111 2/3, par. 330)
18    Sec. 30. Rule and regulations; fares. The Board shall make
19all rules and regulations governing the operation of the
20transportation system, shall determine all routings and change
21the same whenever it is deemed advisable by the Board, subject
22to the provisions of any ordinance granting rights to the
23Authority. The Except as provided in Section 4.11(b)(5) of the
24"Regional Transportation Authority Act", the Board shall fix
25rates, fares and charges for transportation, provided that they

 

 

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1shall be at all times sufficient in the aggregate to provide
2revenues (a) for the payment of the interest on and principal
3of all bonds, certificates and other obligations payable from
4said revenues and to meet all other charges upon such revenues
5as provided by any trust agreement executed by the Authority in
6connection with the issuance of bonds or certificates under
7this Act, (b) for the payment of all operating costs including
8all charges which may be incurred pursuant to Sections 29 and
939 of this Act and all other costs and charges incidental to
10the operation of the transportation system, (c) for the payment
11of all costs and charges incurred pursuant to Sections 37 and
1238 of this Act and any other costs and charges for acquisition,
13installation, construction or for replacement or
14reconstruction of equipment, structures or rights of way not
15financed through issuance of bonds or certificates under
16Section 12 of this Act, and (d) for any compensation required
17to be paid to any municipality for the use of streets, subways
18and other public ways. The Board may provide free
19transportation within any municipality in and by which they are
20employed for firemen and public health nurses, when in uniform,
21and policemen when in uniform or, when not in uniform, upon
22presentation of identification as policemen, and shall provide
23free transportation to sworn law enforcement personnel of the
24Cook County Sheriff's Department when in uniform or, when not
25in uniform, upon presentation of identification as sworn law
26enforcement personnel of the Cook County Sheriff's Department,

 

 

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1and may provide free transportation for employees of the
2Authority when in uniform or upon presentation of
3identification as such employees, and may enter into agreements
4with the United States Post Office Department for the
5transportation of mail, and the payment of compensation to the
6Authority in lieu of fares for the transportation of letter
7carriers, when in uniform at all times.
8    The Board may also provide free transportation, or
9transportation at reduced fares, to all or designated classes
10of pupils in attendance at public schools of school districts
11within or partly within the territorial limits of the
12Authority, or in attendance at private schools offering grades
13of instruction comparable to those offered in public schools,
14under such conditions as shall be prescribed by the Board, and,
15if otherwise authorized by law, the Board may contract with
16public school boards and representatives of private schools,
17for reimbursement of pupil transportation costs from public
18funds.
19(Source: P.A. 83-886.)
 
20    (70 ILCS 3605/34)  (from Ch. 111 2/3, par. 334)
21    Sec. 34. Budget and Program. The Authority, subject to the
22powers of the Regional Transportation Authority in Section 4.11
23of the Regional Transportation Authority Act, shall control the
24finances of the Authority. It shall by ordinance appropriate
25money to perform the Authority's purposes and provide for

 

 

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1payment of debts and expenses of the Authority. Each year the
2Authority shall prepare and publish a comprehensive annual
3budget and five-year capital program document, and a financial
4plan for the 2 years thereafter describing the state of the
5Authority and presenting for the forthcoming fiscal year and
6the two following years the Authority's plans for such
7operations and capital expenditures as it intends to undertake
8and the means by which it intends to finance them. The proposed
9budget, financial plan, and five-year capital program shall be
10based on the Regional Transportation Authority's estimate of
11funds to be made available to the Authority by or through the
12Regional Transportation Authority and shall conform in all
13respects to the requirements established by the Regional
14Transportation Authority. The proposed budget, financial plan,
15and five-year capital program shall contain a statement of the
16funds estimated to be on hand at the beginning of the fiscal
17year, the funds estimated to be received from all sources for
18such year and the funds estimated to be on hand at the end of
19such year. The proposed budget, financial plan, and five-year
20capital program shall be available at no cost for public
21inspection at the Authority's main office and at the Regional
22Transportation Authority's main office at least 3 weeks prior
23to any public hearing. Before the proposed budget, financial
24plan, and five-year capital program are submitted to the
25Regional Transportation Authority, the Authority shall hold at
26least one public hearing thereon in each of the counties in

 

 

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1which the Authority provides service. All Board members of the
2Authority shall attend a majority of the public hearings unless
3reasonable cause is given for their absence. After the public
4hearings, the Board of the Authority shall hold at least one
5meeting for consideration of the proposed program and budget
6with the Cook County Board. After conducting such hearings and
7holding such meetings and after making such changes in the
8proposed budget, financial plan, and five-year capital program
9as the Board deems appropriate, it shall adopt an annual budget
10ordinance at least by November 15th preceding the beginning of
11each fiscal year. The budget, financial plan, and five-year
12capital program shall then be submitted to the Regional
13Transportation Authority as provided in Section 4.11 of the
14Regional Transportation Authority Act.
15    If In the event that the Chairman of the Board of the
16Regional Transportation Authority determines that the budget,
17financial plan, and five-year capital program do not meet the
18standards of said Section 4.11, then the Board must submit to
19the Authority an amended budget ordinance as set forth in
20Section 4.11 of the Regional Transportation Authority Act. ,
21the Board of the Authority shall make such changes as are
22necessary to meet such requirements and adopt an amended budget
23ordinance. The amended budget ordinance shall be resubmitted to
24the Regional Transportation Authority pursuant to said Section
254.11. The ordinance shall appropriate such sums of money as are
26deemed necessary to defray all necessary expenses and

 

 

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1obligations of the Authority, specifying purposes and the
2objects or programs for which appropriations are made and the
3amount appropriated for each object or program. Additional
4appropriations, transfers between items and other changes in
5such ordinance which do not alter the basis upon which the
6balanced budget determination was made by the Regional
7Transportation Authority may be made from time to time by the
8Board.
9    The budget shall:
10        (i) show a balance between (A) anticipated revenues
11    from all sources including operating subsidies and (B) the
12    costs of providing the services specified and of funding
13    any operating deficits or encumbrances incurred in prior
14    periods, including provision for payment when due of
15    principal and interest on outstanding indebtedness;
16        (ii) show cash balances including the proceeds of any
17    anticipated cash flow borrowing sufficient to pay with
18    reasonable promptness all costs and expenses as incurred;
19        (iii) provide for a level of fares or charges and
20    operating or administrative costs for the public
21    transportation provided by or subject to the jurisdiction
22    of the Board sufficient to allow the Board to meet its
23    required system generated revenue recovery ratio as
24    determined in accordance with subsection (a) of Section
25    4.11 of the Regional Transportation Authority Act;
26        (iv) be based upon and employ assumptions and

 

 

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1    projections which are reasonable and prudent;
2        (v) have been prepared in accordance with sound
3    financial practices as determined by the Board of the
4    Regional Transportation Authority;
5        (vi) meet such other financial, budgetary, or fiscal
6    requirements that the Board of the Regional Transportation
7    Authority may by rule or regulation establish; and
8        (vii) be consistent with the goals and objectives
9    adopted by the Regional Transportation Authority in the
10    Strategic Plan; and .
11        (viii) include specific line-items for revenues and
12    expenses.
13    The Board shall establish a fiscal operating year. At least
14thirty days prior to the beginning of the first full fiscal
15year after the creation of the Authority, and annually
16thereafter, the Board shall cause to be prepared a tentative
17budget which shall include all operation and maintenance
18expense for the ensuing fiscal year. The tentative budget shall
19be considered by the Board and, subject to any revision and
20amendments as may be determined, shall be adopted prior to the
21first day of the ensuing fiscal year as the budget for that
22year. No expenditures for operations and maintenance in excess
23of the budget shall be made during any fiscal year except by
24the affirmative vote of at least five members of the Board. It
25shall not be necessary to include in the annual budget any
26statement of necessary expenditures for pensions or retirement

 

 

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1annuities, or for interest or principal payments on bonds or
2certificates, or for capital outlays, but it shall be the duty
3of the Board to make provision for payment of same from
4appropriate funds. The Board may not alter its fiscal year
5without the prior approval of the Board of the Regional
6Transportation Authority.
7(Source: P.A. 95-708, eff. 1-18-08.)
 
8    Section 10. The Regional Transportation Authority Act is
9amended by changing Sections 2.04, 3A.10, 3B.10, and 4.11 as
10follows:
 
11    (70 ILCS 3615/2.04)  (from Ch. 111 2/3, par. 702.04)
12    Sec. 2.04. Fares and Nature of Service.
13    (a) Whenever a Service Board provides any public
14transportation by operating public transportation facilities,
15the Service Board shall provide for the level and nature of
16fares or charges to be made for such services, and the nature
17and standards of public transportation to be so provided that
18meet the goals and objectives adopted by the Authority in the
19Strategic Plan. Provided, however that if, before the effective
20date of this amendatory Act of the 97th General Assembly, the
21Board adopts a budget and financial plan for a Service Board in
22accordance with the provisions in Section 4.11(b)(5), the Board
23may consistent with the terms of any purchase of service
24contract provide for the level and nature of fares to be made

 

 

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1for such services under the jurisdiction of that Service Board,
2and the nature and standards of public transportation to be so
3provided.
4    (b) Whenever a Service Board provides any public
5transportation pursuant to grants made after June 30, 1975, to
6transportation agencies for operating expenses (other than
7with regard to experimental programs) or pursuant to any
8purchase of service agreement, the purchase of service
9agreement or grant contract shall provide for the level and
10nature of fares or charges to be made for such services, and
11the nature and standards of public transportation to be so
12provided. A Service Board shall require all transportation
13agencies with which it contracts, or from which it purchases
14transportation services or to which it makes grants to provide
15half fare transportation for their student riders if any of
16such agencies provide for half fare transportation to their
17student riders.
18    (c) In so providing for the fares or charges and the nature
19and standards of public transportation, any purchase of service
20agreements or grant contracts shall provide, among other
21matters, for the terms or cost of transfers or interconnections
22between different modes of transportation and different public
23transportation agencies, schedules or routes of such service,
24changes which may be made in such service, the nature and
25condition of the facilities used in providing service, the
26manner of collection and disposition of fares or charges, the

 

 

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1records and reports to be kept and made concerning such
2service, for interchangeable tickets or other coordinated or
3uniform methods of collection of charges, and shall further
4require that the transportation agency comply with any
5determination made by the Board of the Authority under and
6subject to the provisions of Section 2.12b of this Act. In
7regard to any such service, the Authority and the Service
8Boards shall give attention to and may undertake programs to
9promote use of public transportation and to provide coordinated
10ticket sales and passenger information. In the case of a grant
11to a transportation agency which remains subject to Illinois
12Commerce Commission supervision and regulation, the Service
13Boards shall exercise the powers set forth in this Section in a
14manner consistent with such supervision and regulation by the
15Illinois Commerce Commission.
16(Source: P.A. 95-708, eff. 1-18-08.)
 
17    (70 ILCS 3615/3A.10)  (from Ch. 111 2/3, par. 703A.10)
18    Sec. 3A.10. Budget and Program. The Suburban Bus Board,
19subject to the powers of the Authority in Section 4.11, shall
20control the finances of the Division. It shall by ordinance
21appropriate money to perform the Division's purposes and
22provide for payment of debts and expenses of the Division. Each
23year the Suburban Bus Board shall prepare and publish a
24comprehensive annual budget and proposed five-year capital
25program document, and a financial plan for the 2 years

 

 

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1thereafter describing the state of the Division and presenting
2for the forthcoming fiscal year and the 2 following years the
3Suburban Bus Board's plans for such operations and capital
4expenditures as it intends to undertake and the means by which
5it intends to finance them. The proposed budget, financial
6plan, and five-year capital program shall be based on the
7Authority's estimate of funds to be made available to the
8Suburban Bus Board by or through the Authority and shall
9conform in all respects to the requirements established by the
10Authority. The proposed budget, financial plan, and five-year
11capital program shall contain a statement of the funds
12estimated to be on hand at the beginning of the fiscal year,
13the funds estimated to be received from all sources for such
14year and the funds estimated to be on hand at the end of such
15year. The fiscal year of the Division shall be the same as the
16fiscal year of the Authority. Before the proposed budget,
17financial plan, and five-year capital program are submitted to
18the Authority, the Suburban Bus Board shall hold at least one
19public hearing thereon in each of the counties in the
20metropolitan region in which the Division provides service. The
21Suburban Bus Board shall hold at least one meeting for
22consideration of the proposed budget, financial plan, and
23five-year capital program with the county board of each of the
24several counties in the metropolitan region in which the
25Division provides service. After conducting such hearings and
26holding such meetings and after making such changes in the

 

 

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1proposed budget, financial plan, and five-year capital program
2as the Suburban Bus Board deems appropriate, it shall adopt an
3annual budget ordinance at least by November 15 next preceding
4the beginning of each fiscal year. The budget, financial plan,
5and five-year capital program shall then be submitted to the
6Authority as provided in Section 4.11. In the event that the
7Chairman of the Board of the Authority determines that the
8budget and financial plan do not meet the standards of Section
94.11, the Suburban Bus Board shall make such changes as are
10necessary to meet such requirements and adopt an amended budget
11ordinance. The amended budget ordinance shall be resubmitted to
12the Authority pursuant to Section 4.11. The ordinance shall
13appropriate such sums of money as are deemed necessary to
14defray all necessary expenses and obligations of the Division,
15specifying purposes and the objects or programs for which
16appropriations are made and the amount appropriated for each
17object or program. Additional appropriations, transfers
18between items and other changes in such ordinance which do not
19alter the basis upon which the balanced budget determination
20was made by the Chairman of the Board of the Authority may be
21made from time to time by the Suburban Bus Board.
22    The budget shall:
23        (i) show a balance between (A) anticipated revenues
24    from all sources including operating subsidies and (B) the
25    costs of providing the services specified and of funding
26    any operating deficits or encumbrances incurred in prior

 

 

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

 

 

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1(Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08.)
 
2    (70 ILCS 3615/3B.10)  (from Ch. 111 2/3, par. 703B.10)
3    Sec. 3B.10. Budget and Program. The Commuter Rail Board,
4subject to the powers of the Authority in Section 4.11, shall
5control the finances of the Division. It shall by ordinance
6appropriate money to perform the Division's purposes and
7provide for payment of debts and expenses of the Division. Each
8year the Commuter Rail Board shall prepare and publish a
9comprehensive annual budget and proposed five-year capital
10program document, and a financial plan for the two years
11thereafter describing the state of the Division and presenting
12for the forthcoming fiscal year and the two following years the
13Commuter Rail Board's plans for such operations and capital
14expenditures as the Commuter Rail Board intends to undertake
15and the means by which it intends to finance them. The proposed
16budget, financial plan, and five-year capital program shall be
17based on the Authority's estimate of funds to be made available
18to the Commuter Rail Board by or through the Authority and
19shall conform in all respects to the requirements established
20by the Authority. The proposed budget, financial plan, and
21five-year capital program shall contain a statement of the
22funds estimated to be on hand at the beginning of the fiscal
23year, the funds estimated to be received from all sources for
24such year and the funds estimated to be on hand at the end of
25such year. The fiscal year of the Division shall be the same as

 

 

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1the fiscal year of the Authority. Before the proposed budget,
2financial plan, and five-year capital program are submitted to
3the Authority, the Commuter Rail Board shall hold at least one
4public hearing thereon in each of the counties in the
5metropolitan region in which the Division provides service. The
6Commuter Rail Board shall hold at least one meeting for
7consideration of the proposed budget, financial plan, and
8five-year capital plan with the county board of each of the
9several counties in the metropolitan region in which the
10Division provides service. After conducting such hearings and
11holding such meetings and after making such changes in the
12proposed budget, financial plan, and five-year capital plan as
13the Commuter Rail Board deems appropriate, the board shall
14adopt its annual budget ordinance at least by November 15 next
15preceding the beginning of each fiscal year. The budget,
16financial plan, and five-year capital program shall then be
17submitted to the Authority as provided in Section 4.11. In the
18event that the Chairman of the Board of the Authority
19determines that the budget and program, and financial plan do
20not meet the standards of Section 4.11, the Commuter Rail Board
21shall make such changes as are necessary to meet such
22requirements and adopt an amended budget ordinance. The amended
23budget ordinance shall be resubmitted to the Authority pursuant
24to Section 4.11. The ordinance shall appropriate such sums of
25money as are deemed necessary to defray all necessary expenses
26and obligations of the Division, specifying purposes and the

 

 

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1objects or programs for which appropriations are made and the
2amount appropriated for each object or program. Additional
3appropriations, transfers between items and other changes in
4such ordinance which do not alter the basis upon which the
5balanced budget determination was made by the Chairman of the
6Board of the Authority may be made from time to time by the
7Commuter Rail Board.
8    The budget shall:
9        (i) show a balance between (A) anticipated revenues
10    from all sources including operating subsidies and (B) the
11    costs of providing the services specified and of funding
12    any operating deficits or encumbrances incurred in prior
13    periods, including provision for payment when due of
14    principal and interest on outstanding indebtedness;
15        (ii) show cash balances including the proceeds of any
16    anticipated cash flow borrowing sufficient to pay with
17    reasonable promptness all costs and expenses as incurred;
18        (iii) provide for a level of fares or charges for the
19    public transportation provided by or subject to the
20    jurisdiction of such Commuter Rail Board sufficient to
21    allow the Commuter Rail Board to meet its required system
22    generated revenue recovery ratio;
23        (iv) be based upon and employ assumptions and
24    projections which the Board of the Authority finds to be
25    reasonable and prudent;
26        (v) have been prepared in accordance with sound

 

 

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1    financial practices as determined by the Board of the
2    Authority;
3        (vi) meet such other uniform financial, budgetary, or
4    fiscal requirements that the Board of the Authority may by
5    rule or regulation establish; and
6        (vii) be consistent with the goals and objectives
7    adopted by the Regional Transportation Authority in the
8    Strategic Plan; and .
9        (viii) include specific line-items for revenues and
10    expenses.
11(Source: P.A. 95-708, eff. 1-18-08.)
 
12    (70 ILCS 3615/4.11)  (from Ch. 111 2/3, par. 704.11)
13    Sec. 4.11. Budget Review Powers.
14    (a) Based upon estimates which shall be given to the
15Authority by the Director of the Governor's Office of
16Management and Budget (formerly Bureau of the Budget) of the
17receipts to be received by the Authority from the taxes imposed
18by the Authority and the authorized estimates of amounts to be
19available from State and other sources to the Service Boards,
20and the times at which such receipts and amounts will be
21available, the Board shall, not later than the next preceding
22September 15th prior to the beginning of the Authority's next
23fiscal year, advise each Service Board of the amounts estimated
24by the Board to be available for such Service Board during such
25fiscal year and the two following fiscal years and the times at

 

 

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1which such amounts will be available. The Board shall, at the
2same time, also advise each Service Board of its required
3system generated revenues recovery ratio for the next fiscal
4year which shall be the percentage of the aggregate costs of
5providing public transportation by or under jurisdiction of
6that Service Board which must be recovered from system
7generated revenues. The Board shall, at the same time,
8beginning with the 2007 fiscal year, also advise each Service
9Board that provides ADA paratransit services of its required
10system generated ADA paratransit services revenue recovery
11ratio for the next fiscal year which shall be the percentage of
12the aggregate costs of providing ADA paratransit services by or
13under jurisdiction of that Service Board which must be
14recovered from fares charged for such services, except that
15such required system generated ADA paratransit services
16revenue recovery ratio shall not exceed the minimum percentage
17established pursuant to Section 4.01(b)(ii) of this Act. In
18determining a Service Board's system generated revenue
19recovery ratio, the Board shall consider the historical system
20generated revenues recovery ratio for the services subject to
21the jurisdiction of that Service Board. The Board shall not
22increase a Service Board's system generated revenues recovery
23ratio for the next fiscal year over such ratio for the current
24fiscal year disproportionately or prejudicially to increases
25in such ratios for other Service Boards. The Board may, by
26ordinance, provide that (i) the cost of research and

 

 

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1development projects in the fiscal year beginning January 1,
21986 and ending December 31, 1986 conducted pursuant to Section
32.09 of this Act, (ii) the costs for passenger security, and
4(iii) expenditures of amounts granted to a Service Board from
5the Innovation, Coordination, and Enhancement Fund for
6operating purposes may be exempted from the farebox recovery
7ratio or the system generated revenues recovery ratio of the
8Chicago Transit Authority, the Suburban Bus Board, and the
9Commuter Rail Board, or any of them. During fiscal years 2008
10through 2012, the Board may also allocate the exemption of
11$200,000,000 and the reducing amounts of costs provided by this
12amendatory Act of the 95th General Assembly from the farebox
13recovery ratio or system generated revenues recovery ratio of
14each Service Board.
15    (b)(1) Not later than the next preceding November 15 prior
16to the commencement of such fiscal year, each Service Board
17shall submit to the Authority its proposed budget for such
18fiscal year and its proposed financial plan for the two
19following fiscal years. Such budget and financial plan shall
20(i) be prepared in the format, follow the financial and
21budgetary practices, and be based on any assumptions and
22projections required by the Authority and (ii) not project or
23assume a receipt of revenues from the Authority in amounts
24greater than those set forth in the estimates provided by the
25Authority pursuant to subsection (a) of this Section.
26    (2) The Board shall review the proposed budget and two-year

 

 

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1financial plan submitted by each Service Board. The Board shall
2make a recommendation to the Chairman of the Board that the
3Chairman approve or disapprove the budget and plan. The budget
4and plan may not be considered approved until the budget and
5plan have the approval of the Chairman of the Board. The Board
6shall recommend the approval of approve the budget and two-year
7financial plan of a Service Board if:
8        (i) such budget and plan show a balance between (A)
9    anticipated revenues from all sources including operating
10    subsidies and (B) the costs of providing the services
11    specified and of funding any operating deficits or
12    encumbrances incurred in prior periods, including
13    provision for payment when due of principal and interest on
14    outstanding indebtedness;
15        (ii) such budget and plan show cash balances including
16    the proceeds of any anticipated cash flow borrowing
17    sufficient to pay with reasonable promptness all costs and
18    expenses as incurred;
19        (iii) such budget and plan provide for a level of fares
20    or charges and operating or administrative costs for the
21    public transportation provided by or subject to the
22    jurisdiction of such Service Board sufficient to allow the
23    Service Board to meet its required system generated revenue
24    recovery ratio and, beginning with the 2007 fiscal year,
25    system generated ADA paratransit services revenue recovery
26    ratio;

 

 

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1        (iv) such budget and plan are based upon and employ
2    assumptions and projections which are reasonable and
3    prudent;
4        (v) such budget and plan have been prepared in
5    accordance with sound financial practices as determined by
6    the Board;
7        (vi) such budget and plan meet such other financial,
8    budgetary, or fiscal requirements that the Board may by
9    rule or regulation establish; and
10        (vii) such budget and plan are consistent with the
11    goals and objectives adopted by the Authority in the
12    Strategic Plan; and .
13        (viii) such budget and plan include specific
14    line-items for revenues and expenses.
15    (3) (Blank).
16    (4) If the Chairman of the Board approves the budget and
17plan, he or she shall sign it. The Chairman of the Board may
18reduce or veto any item of appropriations in the budget or plan
19and shall return the item vetoed or reduced with his or her
20objections to the Board. A copy of the veto shall also be
21delivered to the Service Board that submitted the budget or
22plan for approval. Portions of the budget or plan not reduced
23or vetoed shall be considered approved. If, within 30 calendar
24days after the veto has been delivered to the Board and the
25appropriate Service Board, the Board restores an item that has
26been reduced or overrides the veto of an item by a record vote

 

 

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1of 14 members, the item shall be considered approved. If a
2reduced item is not restored, then it shall be considered
3approved in the reduced amount.
4    If Unless the Chairman of the Board by an affirmative vote
5of 12 of the then Directors determines that the budget and
6financial plan of a Service Board does not meet meets the
7criteria specified in clauses (i) through (vii) of subparagraph
8(2) of this paragraph (b), the Board shall withhold from that
9Service Board 25% of the cash proceeds of taxes imposed by the
10Authority under Section 4.03 and Section 4.03.1 and received
11after February 1 and 25% of the amounts transferred to the
12Authority from the Public Transportation Fund under Section
134.09(a) (but not including Section 4.09(a)(3)(iv)) after
14February 1 that the Board has estimated to be available to that
15Service Board under Section 4.11(a). Such funding shall be
16released to the Service Board only upon approval of a budget
17and financial plan under this Section or adoption of a budget
18and financial plan on behalf of the Service Board by the
19Authority.
20    (5) (Blank). If the Board has not found that the budget and
21financial plan of a Service Board meets the criteria specified
22in clauses (i) through (vii) of subparagraph (2) of this
23paragraph (b), the Board, by the affirmative vote of at least
2412 of its then Directors, shall adopt a budget and financial
25plan meeting such criteria for that Service Board.
26    (c)(1) If the Board shall at any time have received a

 

 

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1revised estimate, or revises any estimate the Board has made,
2pursuant to this Section of the receipts to be collected by the
3Authority which, in the judgment of the Board, requires a
4change in the estimates on which the budget of any Service
5Board is based, the Board shall advise the affected Service
6Board of such revised estimates, and such Service Board shall
7within 30 days after receipt of such advice submit a revised
8budget incorporating such revised estimates. If the revised
9estimates require, in the judgment of the Board, that the
10system generated revenues recovery ratio of one or more Service
11Boards be revised in order to allow the Authority to meet its
12required ratio, the Board shall advise any such Service Board
13of its revised ratio and such Service Board shall within 30
14days after receipt of such advice submit a revised budget
15incorporating such revised estimates or ratio.
16    (2) Each Service Board shall, within such period after the
17end of each fiscal quarter as shall be specified by the Board,
18report to the Authority its financial condition and results of
19operations and the financial condition and results of
20operations of the public transportation services subject to its
21jurisdiction, as at the end of and for such quarter. If in the
22judgment of the Board such condition and results are not
23substantially in accordance with such Service Board's budget
24for such period, the Board shall so advise such Service Board
25and such Service Board shall within the period specified by the
26Board submit a revised budget incorporating such results.

 

 

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1    (2.5) The Board shall make a recommendation to the Chairman
2of the Board that the Chairman approve or disapprove the
3revised budget. The revised budget may not be considered
4approved until it has the approval of the Chairman of the
5Board. If the Chairman of the Board approves the revised
6budget, he or she shall sign it. The Chairman of the Board may
7reduce or veto any item of appropriations in the revised budget
8and shall return the item vetoed or reduced with his or her
9objections to the Board. A copy of the veto shall also be
10delivered to the Service Board that submitted the revised
11budget for approval. Portions of the revised budget not reduced
12or vetoed shall be considered approved. If, within 30 calendar
13days after the veto has been delivered to the Board and the
14appropriate Service Board, the Board restores an item that has
15been reduced or overrides the veto of an item by a record vote
16of 14 members, the item shall be considered approved. If a
17reduced item is not restored, then it shall be considered
18approved in the reduced amount.
19    (3) If the Chairman of the Board determines Board shall
20determine that a revised budget submitted by a Service Board
21pursuant to subparagraph (1) or (2) of this paragraph (c) does
22not meet the criteria specified in clauses (i) through (vii) of
23subparagraph (2) of paragraph (b) of this Section, the Board
24shall withhold from that Service Board 25% of the cash proceeds
25of taxes imposed by the Authority under Section 4.03 or 4.03.1
26and received by the Authority after February 1 and 25% of the

 

 

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1amounts transferred to the Authority from the Public
2Transportation Fund under Section 4.09(a) (but not including
3Section 4.09(a)(3)(iv)) after February 1 that the Board has
4estimated to be available to that Service Board under Section
54.11(a). If the Service Board submits a revised financial plan
6and budget which plan and budget shows that the criteria will
7be met within a four quarter period, the Board shall release
8any such withheld funds to the Service Board. The Board by the
9affirmative vote of at least 12 of its then Directors may
10require a Service Board to submit a revised financial plan and
11budget which shows that the criteria will be met in a time
12period less than four quarters.
13    (d) All budgets and financial plans, financial statements,
14audits and other information presented to the Authority
15pursuant to this Section or which may be required by the Board
16to permit it to monitor compliance with the provisions of this
17Section shall be prepared and presented in such manner and
18frequency and in such detail as shall have been prescribed by
19the Board, shall be prepared on both an accrual and cash flow
20basis as specified by the Board, shall present such information
21as the Authority shall prescribe that fairly presents the
22condition of any pension plan or trust for health care benefits
23with respect to retirees established by the Service Board and
24describes the plans of the Service Board to meet the
25requirements of Sections 4.02a and 4.02b, and shall identify
26and describe the assumptions and projections employed in the

 

 

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1preparation thereof to the extent required by the Board. If the
2Executive Director certifies that a Service Board has not
3presented its budget and two-year financial plan in conformity
4with the rules adopted by the Authority under the provisions of
5Section 4.01(f) and this subsection (d), and such certification
6is accepted by the affirmative vote of at least 12 of the then
7Directors of the Authority, the Authority shall not distribute
8to that Service Board any funds for operating purposes in
9excess of the amounts distributed for such purposes to the
10Service Board in the previous fiscal year. A Except when the
11Board adopts a budget and a financial plan for a Service Board
12under paragraph (b)(5), a Service Board shall provide for such
13levels of transportation services and fares or charges therefor
14as it deems appropriate and necessary in the preparation of a
15budget and financial plan meeting the criteria set forth in
16clauses (i) through (vii) of subparagraph (2) of paragraph (b)
17of this Section. The Authority shall have access to and the
18right to examine and copy all books, documents, papers,
19records, or other source data of a Service Board relevant to
20any information submitted pursuant to this Section.
21    (e) Whenever this Section requires the Board to make
22determinations with respect to estimates, budgets or financial
23plans, or rules or regulations with respect thereto such
24determinations shall be made upon the affirmative vote of at
25least 12 of the then Directors and shall be incorporated in a
26written report of the Board and such report shall be submitted

 

 

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1within 10 days after such determinations are made to the
2Governor, the Mayor of Chicago (if such determinations relate
3to the Chicago Transit Authority), and the Auditor General of
4Illinois.
5(Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08.)
 
6    Section 99. Effective date. This Act takes effect January
71, 2012.