Progressive Railroading

Newsletter Sign Up
Stay updated on news, articles and information for the rail industry



This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.


View Current Digital Issue »


RAIL EMPLOYMENT & NOTICES



Rail News Home Passenger Rail

10/8/2009



Rail News: Passenger Rail

CTA maps out additional cost-cutting measures for 2010


advertisement

Next year, the Chicago Transit Authority (CTA) plans to implement a series of cost-cutting measures to reduce a projected $300 million revenue shortfall resulting from lower-than-expected tax revenue.

The agency again will defer merit pay increases and institute more furlough days and unpaid holidays for non-union employees. In addition, the CTA plans to eliminate at least 70 non-union jobs, and reduce intern and fellows programs to save about $21.6 million. The proposed job reductions would reduce the non-union workforce by 17 percent since 2007.

The CTA also is reaching out to its unions — which represent about 90 percent of the agency’s workforce — to help reduce costs in 2010. Union members received a 3 percent wage increase in 2009 and are scheduled to receive a 3.5 percent hike next year.

Other cost-cutting measures include scaling back contracts, reducing expenditures and hedging fuel to save an estimated $10.5 million. The CTA also will transfer $90 million in eligible capital funds to the operating budget for preventive maintenance to reduce the budget shortfall by $122 million.

“Public funding has been especially weak. This year, CTA’s tax-funded revenues were 34 percent lower than anticipated when the budget was developed, and next year will be even worse,” said CTA President Richard Rodriguez in a prepared statement. “We have to make the tough management decisions and continue to cut costs internally.”

The agency already has taken many belt-tightening steps this year, such as limiting overtime, implementing a hiring freeze on non-essential personnel, reducing all department budgets, using capital investments to lower operating costs, and requiring furlough and unpaid days for management.


Contact Progressive Railroading editorial staff.

More News from 10/8/2009