Chicago's mayor and Illinois's governor are at odds over funding for mass transit.

DALEY:  The only viable option for the CTA, Metra and for PACE is a sales tax. Which Democrats and Republicans have agreed in the county. They're going to take sales tax and use it in the counties for roads and transportation in the city.

But Illinois Governor Rod Blagojevich opposes the tax hike, saying private corporations should help fund transit.

BLAGOJEVICH: I can't imagine that the CTA or Mayor Daley are going to cut fares raise fares or cut service when there's a great desire by the governor and others in Springfield to help them find a way so that that can be avoided. The only difference is who should pay.

Blagojevich promises to veto any transit plan that increases the sales tax. Such a plan is expected to be voted on by the state House next week. The CTA expects to cut routes and raise fairs by mid-September if Springfield doesn't step in.