CTA to use about $80 million in savings to balance budget while it negotiates with unions

I had wondered recently how the CTA could release its budget without knowing the results of union negotiations. The CTA hopes to get $160 million from union talks via "anticipated work rule reforms, health care benefit changes and restraint in wage growth consistent with other metropolitan transit agencies," according to a press release.

Last week we reported that the CTA essentially got a $71 million windfall because it didn't need to budget that amount again in the 2012 budget for pension obligation bond debt service. And as Crain's noted, it will tap that money to balance the budget for the first half of the year while it negotiates: "Effectively, the $80 million gives the CTA six months to get the $160 million a year in concessions it wants from its employee unions."

So, now we'll just have to see if the CTA succeeds in getting those CTA givebacks to balance the budget in the second half of the year.

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  • 1. Charles Thomas said on Friday that this was only a setup to blame the union for an eventual fare increase.

    2. Hilkevitch finally was told what you had figured out last week: that Gump denied on October 13 that CTA had given the go ahead on the 5000 series cars, even though he had done so in July. Now CTA is admitting that they have 24 cars. How can anyone have faith in someone who is not a demonstrated liar?

  • In reply to jack:

    I messed up again. Should be now.

    And you folks worshiping at the CTA's tuchus wonder why I am cynical.

  • In reply to jack:

    Hey Jack,

    Where did they admit they have 24 cars?

  • In reply to chris:

    In Hilkevitch's column today:

    http://www.chicagotribune.com/classified/automotive/traffic/ct-met-getting-around-1024-20111024,0,3785794.column

  • In reply to Kevin O’Neil:

    Thanks. I was going to post that, but got consumed with even more nonsense in another Chicago Now blog in the right panel.

    One can also note that they refused a bunch of FOIA requests, even though I doubt that the requests had to do with Bombardier proprietary data. This is a public contract that is past the negotiation stage. Another sign of lying politicians. I guess the Tribune will have to get Atty. Gen. Lisa Byrnes to tell them to turn the information over. What does Claypool really have to hide and lie about?

  • That proprietary data crap caught my attention also.
    What can be secret about an L car either from the CTA's standpoint or Bombardier's?
    It gets me to wondering if they're transmitting real time interior video back to HQ via radio & they don't want anyone to know that or attempt to intercept it.

  • Let them get back from the trade unions who received $10.00 an hour raises this past year. Not local 241 and 308 which got a $1.00 an hour raise.

  • Kurt, not all the trade unions at the CTA got the big $10 a hour raise, the CTA made sure of that. All these raises are based on the Cook County wages, in which Chicago and Cook County employees have been getting for a long time. But no one is squaking about that are they? The last raise the CTA employees got, they actually took home less money.

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