The CTA Bailout: Like Asking For A Pony For Christmas And Getting Socks and Underwear Instead

By Scott Smith in News on Jun 2, 2005 5:29PM

Snark all you want about the Red papers’ news-lite approach but the front page of the Red Eye had it exactly right about the alleged CTA bailout: Doomsday Delayed. Sorry LiLo: you’re back page material today.

After a one-day sigh of relief, details of the plan to Save Chicago Transit are mired in uncertainty. The Tribune (a paper that apparently reminds us of our parents) digs a little deeper into the issue today. By looking at just the numbers, the $54 million dollars approved by the state to cover the CTA’s $55 million dollar deficit would seem to be an almost-perfect fit. But read between the lines and you’ll see that things are not exactly as they seem.

First, the General Assembly gave “the region” $54 million dollars for paratransit services, the most expensive per-ride service the CTA provides. Right now, $47 million dollars of this will go to the CTA and $8 million will go to Pace though even these numbers are described as “fluid.” So this pile of cash was not given as a lump sum for the CTA to cover its other operating expenses (like keeping the buses and trains moving), only to cover its paratransit services. As Pace provides better paratransit services than the CTA already, look for the CTA to contract out with Pace to provide these services in the future giving even more of the $47 million directly to Pace.

So how is the CTA going to actually cut costs so they can stay in business for the remainder of 2005? Enter The Bobs.

In March, the CTA Board brought on AECOM Consult to determine where the CTA could trim out the alleged fat. In the past this has included automating some processes and “controlling (read: cutting or eliminating) overtime and workers’ compensation expenses.” These cuts almost always adversely affect the rank-and-file members of the CTA more than the folks in the administrative offices. Yet the CTA has already undergone 250 similar reviews since 2002 so how much more is there to trim?

But back to this new funding. The CTA has been surprisingly mum about this proposed plan. For months they’ve been pleading for the public to contact lawmakers to help fix the CTA’s funding problems. And when the deed is done, there’s silence from CTA President Frank Kruesi; a CTA spokeswoman expressed cautious optimism and CTA Board President Carole Brown blogged a little about it. Perhaps that’s because the CTA has yet to sign off on this Devil’s Bargain, which includes a promise by the CTA not to raise fares or cut routes through 2005. But because this funding doesn’t cover other operating expenses, the CTA’s going to be in even worse shape come 2006, especially since no attention has been paid to the transit funding formula that CTA officials have been focusing on since Day One of this “crisis.” And if paratransit was such a huge problem in the first place, why wasn't that the focus from the beginning?

Incidentally, with all the fall guys taking hits for the Daley administration lately, will anyone be surprised if CTA President Frank Kruesi gets “kicked upstairs” sometime soon?

Note: For more info on the transfer of paratransit services to Pace, check out Allison Neumer's article in today's Red Eye.

Image: redeyechicago.com