Our 2007 budget year will end without service cuts or fare increases because Governor Blagojevich gave CTA a one-time grant of $21 million that will allow us to get through December.
But because Springfield did not pass a long-term funding package, CTA must now prepare for even more dramatic deficits and consequently even more dramatic measures to balance our budget as required by law. To that end, the Transit Board voted on Wednesday to send CTA’s 2008 budget to the RTA for approval. Based on the RTA’s funding marks for us, the budget has a $158 million deficit. A deficit this size can only really be addressed by: (1) reducing expenses (service cuts) and (2) increasing revenue (fare increase) or, (3) securing a long-term sustainable funding package from Springfield that also gives CTA the tools to address its pension problems. It is this last option that we are continuing to spend our time working toward.
So, the new date we’re looking at for service reductions and fare increases is January 20, 2008. We remain optimistic that the General Assembly will act on legislation before then.
I would also encourage you to read John Hilkevitch’s front page story in today’s Trib reminding readers (elected and other) that the region’s capital infrastructure desperately needs state investment, and CTA’s $6 billion in capital needs are exhibit A.
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