The Chicago Transit Authority announced its 2018 proposed budget Nov. 22, which includes a bare fare increase of 25 cents and a $5 increase for a 30-day unlimited ride pass. CTA President Dorval Carter released a public statement stating that in order to improve the customer experience, a fare hike is necessary.

According to the Chicago Sun-Times, the fare hike comes from a $33 million budget cut from the state of Illinois, which Mayor Rahm Emanuel says is a “balanced approach to make up for the state’s failure.” Officials from the CTA and Emanuel refuse to decrease service to make up for the lack of funding, although the central office of the transportation authority saw some downsizing. 

According to Carter, the price increase is the first of its kind since 2009. The decision to increase fares was determined because the $33 million budget cut equals 50 bus routes. With historically low gas prices for drivers and new competition like Uber and Lyft, the budget cut hit the CTA especially hard.

In addition to the price increase, CTA is working with $3 million in new advertisements and concession revenues. 

The Regional Transportation Authority must approve the budget set by the CTA in an effort to offset the 10 percent reduction in Public Transportation Funds from the state. According to RTA Executive Director Leanne Redden, the most reliable way to generate revenue is through fare hikes.

The state of Illinois is, however, not taking the blame for the increase in fare prices. Patty Schuh, a spokesperson for Gov. Bruce Rauner said that it’s the CTA’s fault for not increasing prices in eight years.

While local officials aren’t necessarily happy about the fare increase, many have made their opinions clear that service cuts are much more of a concern than fare increases.