CTA Cutting 149 Jobs To Balance $10 Million Budget Gap

By Chuck Sudo in News on Sep 11, 2013 5:40PM

The first train at the newly rehabbed Jarvis Red Line station, December 2012. (Photo credit: Brad Perkins)

Faced with a $10 million budget deficit as a result of overestimating fare collection revenue, the Chicago Transit Board announced a “reorganization plan” Wednesday that could save CTA $13 million annually and keep the agency’s promise to balance the deficit without fare hikes or service cuts.

The board approved eliminating 149 positions, some of them no longer necessary as CTA is in the process of rolling out the Ventra open-fare payment system. Other positions are being consolidated into a smaller number of jobs with a broader range of roles, elimination of redundant functions and consolidation of duties.

According to the Sun-Times, 45 positions are already vacant, which means 104 people will be laid off. Sixty of those jobs are non-union administrative positions and 40 are union workers. Laid off workers may apply for the new jobs.

CTA President Forrest Claypool said in a statement to media:

“These changes are a continuation of our efforts over the past two years to create an efficient and cost-effective organization. By reorganizing and streamlining, we gain immediate savings while maintaining the current level and quality of service provided to customers.”

CTA’s board approved hikes in fare passes last year but the agency saw sharp declines in fare collection revenue. Budget records showed system-generated revenue, including fares, advertising and concession rentals, were off projections by $39 million and would have been greater if not for an influx of $13.2 million through June from a sudden increase sales tax and real estate transfer tax revenue. CTA is required by law to end their fiscal year with a balanced budget.