Bus

Chicago Transit unveils budget recommendations

Posted on October 14, 2009

In presenting his budget recommendation for 2010, Chicago Transit Authority (CTA) President Richard L. Rodriguez said that a 30 percent loss of public funding contributed to a $300 million shortfall and staff reductions, mandatory furlough days and strict controls on spending along with transferring capital funds to operating will be necessary to help fill the gap.

The remainder will come from service efficiencies and fare increases, although the CTA will also continue to seek action from its unions and the General Assembly to identify additional savings and reduce the impact on customers.

The CTA identified three areas that have contributed to the shortfall: declining public funding, union contracts and pension obligations.

In 2010,  the agency's public funding will be $213 million lower than the RTA's original projections. The public funding is generated from sales and real estate taxes and both are down due to the recession.

Current labor contracts call for a 3.5 percent union wage increase this year and pension bond interest and employer contributions are scheduled to increase.

"Faced with declining revenues, our challenge is to manage responsibly and make strategic budget decisions that will enable CTA to weather the recession, operate more efficiently, and still provide the critical services that so many working men and women rely on," said CTA's Rodriguez.  "We have evaluated numerous options to cover the shortfall. It was only as the very last resort that we were forced to consider fare and service changes, something I had hoped to avoid," he added.

By making difficult choices, Rodriguez added, the CTA was able to reduce expenses and generate enough new revenue to propose a balanced budget of $1.285 billion dollars.

To minimize the impact of a slow economy on riders, the CTA has already cut $50 million in spending this year through management improvements and efficiencies.

The CTA's proposal is designed to retain as much service as possible, while reducing costs and maximizing efficiency.  The only route eliminations proposed are nine express routes that have corresponding local service.

All parts of the region that have CTA service will continue to have it. Savings will be realized through less frequent service and service that might start later in the morning or end earlier at night.

View comments or post a comment on this story. (0 Comments)

More News

Cummins announces new 'SmartEfficiency' initiative

The product improvement plan focuses on improved fuel efficiency, lower total cost of ownership and improved uptime.

Bluetooth, Wi-Fi sensing from mobile devices may help improve bus service

University of Washington researchers have developed an inexpensive system that uses Wi-Fi and Bluetooth signals from passengers’ mobile phones and devices to collect better data about where bus riders get on and off, how many people use a given stop and even how long they wait to transfer to another bus.

'Off route' Calif. bus driver runs double-decker into bridge

According to the agency transit manager, the driver “got off route” and drove under the bridge, though why is still under investigation. The bus was out-of-service and had no passengers at the time.

BusCon 2016's Call for Papers

conference planning committee is working on the 2016 schedule and is looking for your ideas. If you would like to help lead the conversation as a presenter, we want to hear from you.

Freightliner to invest $22.7M to expand facilities, improve operations

The investment will positively impact a number of key business operations for FCCC, including the construction of a new logistics center, as well as expansions of the current office building, employee parking lot, completed chassis parking, and loading/delivery operations.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close