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Metra board approves $1.1B operating budget, major fare revision

The Metra Board of Directors on Friday, Nov. 10, approved a $1.1 billion operating budget for 2024 that includes a major revision to the agency’s fare structure and a new mix of fare products. It also approved a $574.9 million capital budget that continues investment in railcars, bridges and stations.

The operating budget is 4.9% higher than the 2023 budget, excluding $65 million in added costs that will be reimbursed by Northern Indiana Commuter Transportation District. The increase is largely driven by expected inflationary and contractual increases.

A copy of the complete budget document can be found here.

The operating budget incorporates a revision to the Metra fare structure that was proposed this summer. Under the new structure, which will take effect on Feb. 1, 2024, fares will be equal to or lower than prepandemic levels. 

Major changes include:

  • Replacing the existing 10-zone distance-based structure with a simplified four-zone structure.
  • Discontinuing the promotional the $6 and $10 Day Passes and $100 Super Saver Monthly Pass.
  • Replacing the 10-Ride Ticket with a Day Pass 5-Pack available only in the Ventra app.
  • Discontinuing “incremental fares” – a surcharge to travel beyond the zones indicated on a ticket.
  • Full details can be found at metra.com/2024FarePlan.

The operating budget projects Metra will start the year at 47% of prepandemic (2019) ridership and finish the year at about 54% of prepandemic levels. 

This results in a projection of $243.9 million in system-generated revenues, mostly fares. To cover the rest of its budgeted operating costs, Metra will use $560.4 million in regional sales taxes and $223.7 million in federal COVID-relief funding.

The capital budget of $574.9 million funds 97 projects throughout the system. About 63% of the budget will fund work in four categories:

  • Bridge and retaining wall replacement and rehabilitation: $143.8 million.
  • Stations and parking rehabilitations: $77.5 million.
  • Yard improvements, including facility acquisitions: $71.1 million.
  • Railcar rehabilitation: $67.6 million.

The capital budget is funded by:

  • $252.1 million in federal formula funding.
  • $117 million U.S. Department of Transportation grant for Union Pacific North Line bridges.
  • $73.8 million in Illinois PAYGO funds.
  • $130 million in Regional Transportation Authority bonds.
  • $2 million in RTA Section 5310 funds.

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