Regional authority okays temporary CTA bailout
BY STACY WARDEN
September 14, 2007 | 3:05 PM
The Regional Transportation Authority approved $24 million in emergency funding for the CTA this morning, temporarily avoiding fare increases and service cuts.
The CTA's operating costs this year exceed its budget by $110 million. The agency had planned to lay off 600 employees, cut 39 bus routes and raise fares on Sunday.
The $24 million is an advance against the CTA's 2008 state funding, and will allow El trains and buses to keep operating until Nov. 4.
State lawmakers are working on finding a permanent budget solution for the CTA, and had hoped to have one in place before the cutbacks took effect. The emergency funding allows them more time to do that without inconveniencing riders.
If the state fails to arrive at a solution, CTA President Ron Huberman said, the agency will face a more severe budget crisis. In that case, he said, the agency would lay off 1,000 workers and increase fares beyond the $3 rush-hour El tariff that was supposed to take effect Sunday.
RTA Chairman Jim Riley said dipping into 2008 funds could hurt the agency in the long-run.
"It is clearly a risk, but it is a risk worth taking," said Riley. "At the end of the day we have to remember that we're dealing with people's lives--real people with real lives that we affect."
If the Legislature fails to pass a transportation funding bill this fall, he said, Chicago-area transit agencies will face a 2008 deficit in addition to their current problems.
For that reason, Riley said, the RTA is likely to turn down future advances.
The RTA is a special government agency responsible for transit planning in the six-county Chicago area, as well as budget oversight of CTA, Metra and Pace.
The CTA's operating costs this year exceed its budget by $110 million. The agency had planned to lay off 600 employees, cut 39 bus routes and raise fares on Sunday.
The $24 million is an advance against the CTA's 2008 state funding, and will allow El trains and buses to keep operating until Nov. 4.
State lawmakers are working on finding a permanent budget solution for the CTA, and had hoped to have one in place before the cutbacks took effect. The emergency funding allows them more time to do that without inconveniencing riders.
If the state fails to arrive at a solution, CTA President Ron Huberman said, the agency will face a more severe budget crisis. In that case, he said, the agency would lay off 1,000 workers and increase fares beyond the $3 rush-hour El tariff that was supposed to take effect Sunday.
RTA Chairman Jim Riley said dipping into 2008 funds could hurt the agency in the long-run.
"It is clearly a risk, but it is a risk worth taking," said Riley. "At the end of the day we have to remember that we're dealing with people's lives--real people with real lives that we affect."
If the Legislature fails to pass a transportation funding bill this fall, he said, Chicago-area transit agencies will face a 2008 deficit in addition to their current problems.
For that reason, Riley said, the RTA is likely to turn down future advances.
The RTA is a special government agency responsible for transit planning in the six-county Chicago area, as well as budget oversight of CTA, Metra and Pace.
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