CTA President Releases 2013 Budget

Chicago Transit Authority President Forrest Claypool proposed last week a $1.39 billion budget that he says maintains current service levels, freezes base fares, and calls for modest reductions in discounts for CTA passes to bring them in line with other major U.S. cities.

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Among its most notable inclusions is a new, tentative labor agreement with the Amalgamated Transit Union Locals #241 and #308, which represent CTA bus and rail operators, according to a news release.

The four-year tentative agreement slows the rate of growth in health care spending and emphasizes preventative care, among changes shaving approximately $50 million off the 2013 budget deficit. Agreements with a dozen other CTA unions resulted in similar changes contributing nearly $10 million toward deficit reduction, the release says.

"But facing a $165 million shortfall for 2013, the CTA needed to take further steps to shore up its finances in both 2013 and beyond," says the CTA statment. "Additional management reforms have paid off with tens of millions in savings, and modest reductions in pass discounts will balance the remainder of the budget and ensure future fiscal stability."

“These changes put the ‘doomsday’ budgets of the past behind us," Claypool says.

Base fares remain unchanged at $2 for bus and $2.25 for rail riders. The discounts for passes—3-day, 7-day and 30-day—will be reduced by $4, $6 and $14, respectively, but CTA officials say they "still will provide significant discounts to frequent users."

The one-day pass, primarily used by tourists, will have its discount reduced by $4.25. CTA pass discounts are currently the second most generous of major U.S. cities, the news release says.

Discounts for CPS students will actually increase by 12 percent. To encourage school attendance, students currently paying 85 cents will only pay 75 cents.

“Our management reforms have taken well over $50 million in costs out of the system and our labor partners have helped us bend the cost curve, “ Claypool said, in the release. “These changes put the ‘doomsday’ budgets of the past behind us. We’re moving forward, and building a modern CTA on a strong fiscal footing."

Changes to the labor contracts will allow the CTA to hire more tradesmen as well as additional customer assistants and bus and rail janitors, improving customer service and the cleanliness of facilities and vehicles.

Additionally, over the last 18 months Mayor Rahm Emanuel and the CTA have launched more than $2 billion in modernization projects, upgrading aging infrastructure and improving the customer experience.

The CTA has financed more transit police and built a sophisticated camera surveillance network that’s driven down crime. More than 100 rail stations have received facelifts; replacement of the bus and rail fleet is underway; and contracts have been let to eradicate slow zones.

Work will soon be under way for construction of a new railroad on Chicago’s south side. Better management has reduced absenteeism and workers compensation costs and a modern supply chain is nearly in place.

New technologies, from Bus and Train Tracker to contactless media, are making CTA travel more convenient, safer, and efficient.

READ: CTA Bus Rapid Transit to Cruise Through North Side Neighborhoods

Ridership has increased significantly in the past 18 months, jumping by 5.3 percent or more than 27 million new rides. 

"These reforms are essential, particularly in light of the underfunding of the CTA under a 30-year-old state funding formula, which ignores both number of rides and ridership capacity," the CTA statement says.

The Authority provides 82 percent and 58 percent, respectively, in exchange for just 49 percent of state funding.

As part of state and federal mandates, the CTA also provides more than $100 million each year in free and heavily discounted rides. The state provides only $28 million to help offset the cost of its mandates.

Most significantly, the General Assembly in 2008—just before the Great Recession ground the economy to a halt—required immediate and fully-funded pension and health care trusts. 

Although new revenue was passed as part of the 2008 mandate, it fell $100 million short of covering the new costs. In 2013 alone, the CTA’s operating budget will grow by $32 million because of mandates from the 2008 legislation.

The 2013-2017 Capital Improvement Program (CIP) totals $2.8 billion, with projects designed to modernize aging CTA infrastructure, overhaul and replace fleet vehicles, and bring the system into a state of good repair.

This is the second consecutive budget under Claypool that the CIP does not divert scarce capital funds to balance the operating budget, a move that would cause the delay or cancellation of other critical projects. From 2008 to 2011, the CTA borrowed $554 million, much of it in transfers from capital, to balance the operating budget.

Editor's note: The above information was provided by the Chicago Transit Authority.

CTA customers and the general public will have the opportunity to provide comments to the Chicago Transit Board regarding the President’s 2013 Budget Recommendations at the following budget meetings:

6 p.m. Monday, December 10, 2012
Chicago Transit Authority Headquarters
567 W. Lake St., 2nd Floor
Chicago, IL 60661

6 p.m. Monday, December 17, 2012
Westinghouse College Prep
3223 W. Franklin Blvd., auditorium
Chicago, IL 60624

*Both facilities are accessible to people with disabilities

Written and oral comments will be taken into consideration prior to implementation of the 2013 Budget and Program, the 2013 Capital Program of Projects, and the Financial Plan.

This input will be welcomed at the hearing or by correspondence addressed to Gregory P. Longhini, Assistant Secretary of the Board, Chicago Transit Authority, P.O. Box 7567, Chicago, Illinois 60680-7567.

Input can also be sent via e-mail to: glonghini1@transitchicago.com.

Copies of the budget proposal will also be available at the reference desks of the following libraries:

Harold Washington Public Library
400 S. State St.
10th Floor

Sulzer Regional Library
4455 N. Lincoln Ave.

Woodson Regional Library
9525 S. Halsted

Archer Heights Branch Library
5055 South Archer Avenue

Austin Branch Library
5615 West Race Avenue

Branch Library
5363 West Lawrence Avenue

Marshall Square Branch Library
2724 W. Road Midwest

Jefferson Park Branch Library
2335 W. Chicago Ave.

South Shore Branch Library
2505 E. 73rd St.