CTA fare increases and service cuts will be unavoidable this summer if the legislature doesn’t get on board with more state funding, the transit agency’s new boss said Thursday.
It’s a warning riders have heard in past years — and CTA officials pulled back from implementing — after lawmakers provided temporary funding patches allowing the transit agency to limp through annual budget crises without long-term capital funding needs being addressed.
But CTA president Ron Huberman, with the apparent backing of Mayor Richard Daley, reissued the doomsday ultimatum just a day after completing his second lobbying trip to Springfield in search of a $110 million operating bailout.
“I can say that shortfall will cause us to raise fares. It will cause us to cut back significantly on service,” said Huberman, who took over the CTA on May 1 and, in a signal he is serious about reducing unnecessary costs, quickly cut $12.5 million from the agency’s 2007 budget.
But “there is no other way to get around $110 million,” Huberman said during the CTA’s monthly board meeting. He said employee layoffs were among other options.
The CTA cut 10 percent of its service in 1997 to save $25 million a year, prompting a huge public outcry. Since then, some service, including express bus routes, has been added, resulting in ridership growth but no permanent state funding to support the expenditure.
In 2004, the base CTA fare was raised from $1.50 to $1.75, the first increase since 1991.
January 2006 was the last time the CTA raised some fares. Cash fares jumped to $2 from $1.75, and 25-cent cash transfers were eliminated — resulting in each cash fare costing $2. Users of the Chicago Card and Chicago Card Plus were not hit with a fare hike.
But paratransit fares for disabled riders were doubled to $3.50. Paratransit operations are now operated by Pace, which has warned state lawmakers that that it cannot continue providing the same level of service without additional funding.
Huberman, who plans to return to Springfield next week, declined to elaborate on specific contingency plans being put together to reduce expenses and increase revenue by $110 million. He said details will be provided at a special board meeting later this month.
“We are continuing to crunch numbers. We’re continuing to evaluate routes so that the plan put forward is the most thorough and responsible plan that does the most to protect our ridership,” he said.
He would not disclose what would happen if lawmakers provided some, but not all, of the funds the CTA needs.
The Regional Transportation Authority must approve revised transit budgets next month to get the three transit agencies out of red ink if more state subsidies are not provided.
Public hearings on fare or service changes must also be held before the CTA could implement them as early as July 1.
Metra officials have said the commuter rail agency would cope with the shortfall by delaying some projects, but maintaining service and current fares at least through the year. Pace officials have not disclosed their contingency plans.
The RTA, which oversees the finances of the CTA, Metra and Pace, permitted the transit agencies to submit 2007 budgets that are contingent on receiving a total of $226 million from the state this year.
The RTA is also asking the legislature to provide an additional $400 million annually for transit operations, and $10 billion over the next five years for capital improvements.
Numerous possible funding sources, from an increase in the existing RTA sales tax to creation of an RTA-imposed gasoline tax, have been identified. But the legislature has not indicated that transit funding is a top priority to be tackled this session.
In addition to asking the state for increased operating assistance, the CTA says it needs $5.8 billion to reach a good state of repair, and another $4.7 billion for rail line extensions to meet anticipated future ridership demands.
In other action Thursday, the CTA board approved the $153 million purchase of 400 low-emission New Flyer buses to replace TMC buses on the streets since 1991.
The purchase completes a contract for a total of 1,050 New Flyers since 2005. About 450 buses have been delivered so far. When the order is complete, the CTA will have purchased more than 1,800 buses since 2,000, effectively replacing most of its fleet, which numbers 2,212 buses.
Also Thursday, the CTA said seven more Brown Line trains are running each day during rush hours — three in the morning and four in the afternoon — in the Belmont-Fullerton corridor on the North Side where capacity has been reduced to three tracks from four on the Brown, Red and Purple/Evanston Express Lines for reconstruction that continues through 2009.
Officials restored the seven trains to service after determining that they could be accommodated while crews expand the Belmont and Fullerton stations as part of the $530 million Brown Line project.
Total passenger capacity is still below pre-April levels just before rail service was reduced, but transit agency officials said many riders have adapted by alternating their travel times on trains or switched to buses.
Average daily rail ridership on the North Side increased 4 percent in April, compared with March, officials said. Ridership increased about 10 percent on some bus routes in the corridor during rush periods.
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jhilkevitch@tribune.com
