Reorganization and spending cuts save $15 million annually
Today the Chicago Transit Authority announced the elimination of 54 non-union positions, including 26 manager-level positions. In addition, CTA is reducing expenses which, when combined with personnel moves, will save the agency $15 million annually. The reductions meet Mayor Rahm Emanuel’s target for leaner senior management at city agencies.
Nearly half the cost savings are from personnel reductions. CTA will save approximately $7.6 million in salaries and benefits—a 10 percent reduction in senior management. None of the positions are safety related or directly impact service. Additional savings of $900,000 in labor and benefit costs will be achieved by delaying hiring for open positions that have been deemed necessary. A reduction in materials, utilities and contractual services expenses will further reduce costs for 2011.
“The CTA faces severe financial challenges and cannot wait for next year’s budget to begin making cuts,” said CTA President Forrest Claypool. “By reorganizing and streamlining, we gain immediate savings with no adverse effect on the current level and quality of service provided to customers.”
The 2012 budget is still in the early stages of development, but several short-term solutions used to balance the budget in past years will no longer be options. Going forward, staff has been asked to identify additional personnel and expense reductions for 2012.
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