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."# # #