Bus

Chicago Transit president proposes $1.39B budget

Posted on November 26, 2012

Chicago Transit Authority (CTA) President Forrest Claypool proposed a $1.39 billion budget for 2013 that 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.

The budget reflects a new, tentative labor agreement with the Amalgamated Transit Union Locals #241 and #308, which represent CTA bus and rail operators. 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.

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. 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.

Base fares remain unchanged at $2 for bus and $2.25 for rail. The discounts for passes (3-day, 7-day and 30-day) will be reduced by $6, $5 and $14, respectively, but 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.

Discounts for CPS students will actually increase by 12%. 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. “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.

 

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