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The Regional Transportation Authority (RTA) Board of Directors adopted the 2011 budget at their monthly Board meeting today. A budget of $2.3 billion in operating expenses was approved for the RTA, Chicago Transit Authority (CTA), Metra and Pace.
“The ongoing economic recession has continued to adversely impact our transit funding for the last three years. Revenues generated from the RTA sales tax, our largest source of public funding, has been hit hard by the effects of reduced consumer spending,” said Joseph Costello, RTA Executive Director. “But despite the ongoing crisis, a fiscally responsible budget has been approved.” Costello was appointed as the RTA Executive Director at today’s Board meeting after he served as Acting Executive Director since October.
The RTA predicts next year’s forecast will offer little gain in sales tax or the Chicago Real Estate Transfer Tax and the recession has impacted the rate at which the State of Illinois has made payments to the RTA and most other state agencies. These long awaited funds cause the RTA to face greater challenges in meeting its financial obligations. None of the transit operators proposed fare increases or service cuts, but that is contingent on these challenges being overcome.
Last year, the slower growth in revenue caused the RTA, CTA, Metra and Pace to take steps to constrain costs for 2010, including mandating employees to take unpaid workdays and holidays, freezing salaries, implementing more than 1,000 employee layoffs, and increasing contributions from employees for benefits such as healthcare. Additionally, small fare increases and reductions in service were required to avoid more painful, long-term cuts. Service eliminations were avoided wherever possible. To confront next year’s budget scenario, the RTA, CTA, Metra and Pace will continue to take cost savings measures to meet budget requirements; however, this is not a sustainable solution. Additional capital and operating dollars must be identified to adequately support and maintain the region’s system.
The $2.3 billion budget approved by the RTA board will be allocated as follows: the CTA, $1.33 billion; Metra, $634.2 million; Pace, $183.3 million and ADA paratransit, $120.7 million, and the RTA $33.7 million.
The RTA Board also adopted a five-year capital program. Capital funding will be used largely for maintenance projects. The transit system still needs significantly more funding for further maintenance, enhancement and expansion.
Obtain a copy of the transit system’s 2011 budget below:
2011 RTA Budget Summary
2011 RTA Budget Book
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