Results tagged “fareincrease”

We outlined for you yesterday the specifics of the actual fare increases, but there are a few other tidbits we missed. First, as part of the new budget the CTA passed, 632 workers will be laid off, with as many as 200 losing their jobs before the new budget (and fare hikes) go into effect on January 1. As for the reason that long-term passes increased by only 15 percent instead of 20: "Transit board Chairman Carole Brown said that change was made possible by halting employee enrollment in a "supplemental" pension program for senior staff, a move that was expected to save $3.6 million."

With gas prices finally coming down, the $1 surcharge added in April to help alleviate the financial pressure on cab drivers will be reduced to $0.50 per ride on Friday. The way the surcharge is set up, passengers pay $0.50 a ride if the local price per gallon of gas is at or above $2.70 and $1 if the price is at or above $3.20. Cabs are required to post a placard informing riders of the surcharge; the city began sending out new placards for the new surcharge last week. Locally, the average price of gas is at $3.01 a gallon as opposed to $4.01 a month ago, but still above the $2.89 per gallon price from this time last year. Earlier this fall, cab drivers asked for a fare increase and their wish was granted in the form of a 16 percent fare hike which takes effect sometime early next year.

CTA head Ron Huberman and other local transit officials faced the City Council today and faced criticism on potential fare hikes and the debacle that is the Block 37 project. On the subject of a fare increase, Huberman said:

Ultra-low diesel, which is what we use on our buses, has increased 80 percent. Next year, we will be spending $50 million more for the same quantity of fuel than we spent the prior year. Electrical costs are coming in over 25 percent higher than they were the prior year. That means that we will be spending $7 million more just for electricity,” Huberman said.

Continue reading "CTA Faces City Council, Higher Fares In 2009?"