Belt-Tightening Measures Show Results at CTA

July 11, 2007

CTA's financial results for May show a budget surplus of $1.9 million as a result of administrative efficiencies and performance management systems implemented. Overtime costs were reduced by 25%. The total labor expense for the month of May was $4.1 million below budget.

Immediately after being appointed President Huberman and CTA staff scrutinized the budget to identify opportunities to reduce costs without impacting riders.

The measures identified included:

? Eliminating 75 positions and restricting hiring

? Restricting non-critical overtime

? Deferring pay increases for non-union employees

? Reducing miscellaneous administrative expenses

? Reducing advertising purchases

? Reducing employee travel

? Improving the supply chain process for purchases

A new Performance Management Initiative at the CTA has set standards for employees and holds managers strictly accountable for the performance of their departments.

"We saw a significant drop in overtime costs in May and I want to thank all of the managers for their hard work in controlling costs. It is not easy to keep overtime expenses in check with a system as large as CTA's and the constant attention it requires," said CTA President Ron Huberman. ?However, I do not want to provide false hope with these results - management efficiencies alone will not be enough to solve the CTA's financial problems. Regardless of our commitment to controlling costs, the gap between needs and resources is a chronic problem and the gap will only continue to grow wider every year."

Huberman added, "When I took over the CTA on May 1, I said that I was committed to showing riders, Chicago taxpayers and the legislature that we would do a better job of managing the resources we have and the financial results for May are proof of that commitment."

# # #
Back to news
System status snapshot
‘L’ route status
Red Line
Normal Service
Blue Line
Normal Service
Brown Line
Normal Service
Green Line
Normal Service
Orange Line
Normal Service
Pink Line
Normal Service
Purple Line
Normal Service
Yellow Line
Normal Service
Bus routes w/alerts
Elevator alerts