CTA Announces $12.5 Million in Administrative Cuts

May 10, 2007

49 Jobs Eliminated

Chicago Transit Authority President Ron Huberman today announced a series of administrative belt-tightening measures that would reduce the CTA's costs by $12.5 million while preserving services that impact riders.

"When Mayor Daley recommended me to lead the CTA, he asked me to take the steps that were needed to keep our public transit system viable and provide the services that our riders need and expect. As the CTA, along with the RTA, Metra and Pace, seeks critical funding for transit, I know the Illinois General Assembly will demand that same assurance," said Huberman. ?CTA has to show its riders, Chicago taxpayers and the legislature that we are doing a better job of managing the resources we currently have."

Huberman said he and CTA staff have scrutinized the budget to identify opportunities to reduce costs and operate more efficiently and effectively. The measures identified include:

  • Eliminate positions and restrict hiring
  • Restrict non-critical overtime
  • Reduce miscellaneous administrative expenses
  • Reduce advertising purchases
  • Reduce employee travel
  • Improve the supply chain process for purchases

?Making these changes will help preserve the CTA's cash flow and reduce the costs of providing service while ensuring we are doing everything we can not to impact our riders," said Huberman. ?But even with these steps we?re taking today, I know that state legislators will want even more evidence that the CTA is being managed efficiently. That's why these costs savings measure are an important first step in reducing our costs."

Huberman said that he is also implementing a Performance Management Initiative at the CTA that will set standards for every employee and hold managers strictly accountable for the performance of their departments. Huberman said a similar effort at the City enabled them to maintain high-quality services to Chicago residents while holding taxes down. Immediately after his appointment he met with CTA's upper management to introduce the concept.

"Management efficiencies alone will not be enough to solve the CTA's financial problems," Huberman cautioned. ?The gap between needs and resources grows wider every year."

Last fall, consistent with budget marks set by the RTA, the CTA adopted a budget that included $110 million gap in operating funds for the second half of 2007. The budget was developed with the expectation of additional funding for transit. Huberman said that the CTA is preparing contingency plans if Springfield lawmakers do not support new transit revenues. He expects to make his recommendation to the Chicago Transit Board in the near future.

He also said that the CTA, along with the RTA, Metra, Pace, and over 700 partner organizations and 15,000 individual partners, will continue to advocate for funding to maintain, enhance and expand transit in the region.

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