CTA Announces Job Cuts in 2009 Budget Proposal

admin |

by Dwayne T. Ervin

CTArecently announced plans to layoff over 100 employees, including 43 workers and 80 others employed in administrative positions. The plan to cut jobs will go into effect before the end of the year. Officials cited free rider programs, soaring fuel prices and a loss of a state subsidy for reduced fare rides as part of the cause for cuts. Projections for CTAs fuel and energy costs for 2008 will be $37.3 million higher than last year; the loss of reduced fare subsidy will be $16 million and the free ride program will cost at least $20 million this year.

According to Katelyn Thrall CTA spokesperson, the job cuts are expected to save CTA $4.9 million. CTA is committed to making the senior free rides program work, said Thrall. However, the program does pose a challenge to the CTAs budget, she said.

The announcement was about cost cutting measures for 2008 and does not include any cuts that would adversely impact riders, she continued. The CTA is currently developing and finalizing its 2009 budget proposal. The 2009 budget is still being developed, so all options are being considered, but the CTAboard has made it clear that given increased rider ship, service cuts should be avoided.

Employees were notified recently about the layoffs, but some of the positions were currently vacant, Thrall stated. Nine management positions will be cut. The other positions come from realignments in the Technology, Purchasing, and Law departments in order to reduce costs and operate more efficiently, according to a released statement.

Other cost cutting initiatives underway include deferring contract spending for matters not considered critical, changing the labor mix to reduce reliance on overtime, reducing bus maintenance cost through fleet upgrades and more efficient preventative maintenance practices as well as using technology to improve the efficiency of bus supervision. Earlier this year, the Illinois General Assembly passed legislation to provide the CTA with additional funding. It enabled the CTA to issue bonds to restore the financial health of the pension and establish a retiree health care trust. It was expected to provide sufficient funding to allow CTA to get its operating budget back on solid financial footing.

Most recently, the reduced fare reimbursement was vetoed, affecting the CTAs bottom line by $32 million annually. The CTA was counting on this annual funding to help offset a portion of the free ride programs. The lack of a new state capital program has also strained the CTAs operating budget as resources are diverted to maintain aging equipment and facilities.

Latest Stories

Latest Podcast

STARR Community Services International, Inc.