CTA Announces 2009 Budget Recommendations
by Dwayne T. Ervin
Chicago Transit Authority PresidentRon Huberman announced the proposed2009 budget last Thursday inthe midst of one of CTA's most difficultyears.
On October 29, CTAwill hold a publichearing on the budget to allow cityresidents to provide feedback on theproposal. The Chicago Transit Boardmust submit a budget to the RTA byNovember 15th and RTA mustapprove the budget by the end of theyear.
The proposed 2009 operating budgetis over $1.3 billion, which is $120million higher than 2008. The CTAexpects to generate over $600 millionin fares and other revenue and anticipatesover $720 million in publicfunding.
"We tried to keep the fare increase asmodest as possible," Huberman said.Even though the fares will increase,they will keep the same service, hestated.
With resources directed at operations--administrative and supportstaffing will be reduced by 396 positionscompared to 2008. In addition,due to a reduced capital program, 236positions that were funded by capitalprojects will be eliminated, for a totalworkforce reduction of 632. Bus fuel,which makes up 8 percent of thebudget, is up 112 percent, $54 millionmore than in 2008. Energy costs at$40 million makes up 3 percent of thebudget, and is up 34 percent from lastyear, while the agency has also seenincreases in costs for sheet metal,wire, cable and asphalt.
The free rides for 2009 are estimatedto cost $35.8 million. The averagecosts for free rides for seniors per dayfrom March 17 through September1st this year was $94,637. "We leveledmoney for the fleet with fewerbroken buses," Huberman continued."We have a $42.2 million deficit andthe fare increase will lower it. Wecannot cut more positions. There is nodoomsday in essence," he added.
The CTA had the highest rail ridership in 41 years. The increase was dueto higher gas prices. Reduced fareprices will remain the same. "Peoplewith disabilities are struggling financially,"he added. Disabled riders willpay reduced fares unless they are partof the Circuit Breaker program forfree rides.
The proposed budget also includesan across-the-board fare increasean across-the-board fare increase, tobegin in January 2009, which willgenerate an estimated $42.1 million.This will be the first time that bus andrail pass fares will increase since1998 and, adjusting for inflation, theprice will still remain below 1998levels.
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