CTA Hints at Another Fare Hike

By Marcus Gilmer in News on Mar 12, 2009 5:25PM

Anxious to close the $155 million budget gap they're facing, the CTA proposed several cost-cutting measures at their board meeting yesterday, including the possibility of a new fare hike.

The 11-point strategy focused mostly on internal savings such as cutting management and staff positions that would not affect bus or rail service or raise fares. The measures ranged from reducing management and office staff positions and overtime pay, to attempting to renegotiate contracts and sell off the CTA's vast real estate holdings.

But even if all those cuts were made, the transit agency would still be left with at least a $75 million budget gap, officials said. If RTA loans and other funds failed to materialize, the CTA would be forced to reduce labor costs and seriously consider service cuts and fare increases to fill the remaining budget hole, officials said.

The RTA board is slated to meet April 2 and the CTA board will meet again April 8, when more details would be provided. [WGN AM]