In a comment on yesterday’s post about the 2010 CTA budget, Ed rightly pointed out that it’s “very very significant” that the CTA’s recovery ratio — fare generated revenue — for 2010 is almost 71%. By law the minimum recovery ratio is 50%, but “the significant reduction in public funding forces a recovery ratio for the CTA that far exceeds the requirement,” notes the CTA’s detailed budget recommendation.
The budget document goes on to say:
The recovery ratios in other regions throughout the country are far lower depending on the level of public tax support for transit in those regions. The Chicago region is one of the few in the country with a legislatively mandated recovery ratio of at least 50%. CTA, Metra and Pace together have a higher system-generated fare recovery ratio than almost every other metropolitan region in the United States, even when accounting for different methodologies used in calculating the ratios. If the region is to effectively use enhanced neighborhood public transit services to fight congestion, improve air quality and increase regional economic competitiveness it needs to evaluate the effect of the mandated recovery ratio.
The CTA expects to get almost $700 million in system-generated revenue in 2010, and just under $500 million in public funding through the RTA. Add $90 million gained from transferring capital funds to preventive maintenance, and total revenue is $1.285 billion. Of course, the operating budget is $1.285 billion as well, a 10.3% increase over 2009.
Labor expenses make up 66% of the operating budget, or just over $850 million.