CTA Running $10 Million Budget Deficit
CHICAGO (CBS) -- CTA is running a deficit this year that, so far, stands at $10 million. But it is reassuring riders that the shortfall won't impact them.
CTA Chief Financial Officer Ron DeNard said budget makers failed to anticipate a nose dive in the purchase of CTA seven-day passes, following increases in its pass prices. He said sales of all CTA passes are down, with the exception of the five-day and 30-day passes.
But he said they also failed to project increases in sales and real estate transfer tax revenues, so CTA President Forrest Claypool said the hole remains small enough that it can be erased without fare hikes, service cuts or stealing from its underfunded capital accounts to pay its every day bills.
"They're all ruled out – yes," Claypool said.
He said the agency has "multiple options" to make up the lost revenue.
Claypool also places a lot of blame on legislators for unexpectedly cutting the reimbursement CTA gets for carrying children, students and senior citizens at half fare by $6.9 million this year. The budget is being revised, with the major cuts to take effect in October and Claypool said he is confident that it can be handled internally.
