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[Picture of 79Th Street Bus] [Picture of a CTA Employee Wearing [BOOK FRONT COVER] Public Transit: An Essential Key to Recovery [Picture of 79th Street Bus] [Picture of a CTA employee wearing a mask] [2 different pictures of CTA employees performing COVID-19 related sanitation on a bus and train] President’s 2021 Budget Recommendations [CTA Logo] [BACK PAGE OF FRONT COVER] Chicago Transit Board and CTA President The governing arm of the CTA is the Chicago Transit Board, consisting of seven board members, one of which is currently vacant. The Mayor of Chicago appoints four board members, subject to the approval of the City Council and the Governor of Illinois. The Governor appoints three board members, subject to the approval of the State Senate and the Mayor of Chicago. CTA's day-to-day operations are directed by the President. Arabel Alva Rosales, Vice Chair Appointed by: Governor, State of Illinois Judge Gloria Chevere, Board Member Appointed by: Governor, State of Illinois Kevin Irvine, Board Member Appointed by: Mayor, City of Chicago Dr. L. Bernard Jakes, Board Member Appointed by: Governor, State of Illinois Rev. Johnny L. Miller, Board Member Appointed by: Mayor, City of Chicago Alejandro Silva, Board Member Appointed by: Mayor, City of Chicago Chicago Transit Authority Dorval Carter Jr., President TABLE OF CONTENTS System Map: page 1 President’s Letter: page 4 Organizational Chart: page 6 Executive Summary: page 8 Strategic Goals: page 26 Operating Budget Schedule: page 28 2020 Operating Budget Forecast: page 32 2021 Proposed Operating Budget: page 36 2022-2023 Two-Year Financial Plan: page 42 Operating Revenue Summary: page 44 Performance Management & Statistics: page 48 Performance Management: page 48 Operating Statistics: page 52 CTA Fare Structure: page 54 Comparative Performance Analysis: page 55 Capital Improvement Program: page 58 Appendices: page 84 History of the CTA: page 84 Debt Administration: page 86 Economic Indicators: page 95 Annual Budget Process: page 98 Accounting Systems, Financial Controls & Policy: page 100 Sustainability Initiatives: page 103 Acronyms & Glossary: page 106 [PRINTED PAGE 1] System Map [Picture: Map of the CTA system] [Printed page 4] President’s Letter Dear CTA Customers, On October 1, 1947, the Chicago Transit Authority (CTA) was created as a new governmental entity, charged with providing transit services to the City of Chicago and surrounding suburbs. In the 73 years that have elapsed since then, Chicago’s transit system has seen a steady stream of challenges and opportunities, a wide array of ups and downs, unforeseen events and unexpected hurdles. But nothing has come close to the challenges we’ve seen in the year 2020. Like transit agencies across the country, the CTA has faced truly unprecedented circumstances since March of this year, when the State and City stay at home orders took effect as a result of the COVID-19 pandemic. Literally overnight, our business changed. CTA ridership plummeted in a way the agency has never seen before, and immediately, revenue plunged as well. One thing, however, didn’t change: the CTA continued to provide bus and rail service, 24/7. The State order, which closed so many other business and services, designated transit as an “essential” service. Though most of Chicago began sheltering at home—and not going to work, school or elsewhere—there were still those who needed to travel: Essential workers, such as medical professionals, health-care workers, first responders, those working at senior care facilities. And also those needing to make essential trips—to visit a doctor, buy groceries, or to pick up a prescription. I immediately set two goals for this agency: keep service running, and ensure the cleanest, healthiest commute possible for our customers and employees. Instead of reducing service, as many transit agencies across the country did, I made sure we ran as many trains and buses as we possibly could. Though our ridership fell precipitously, I knew that that many people were still relying on the CTA – and we had to provide enough service for them to socially distance and protect themselves. For all of those customers, and for all of our hardworking employees providing it, we turned our focus on making sure we were providing the cleanest, healthiest, most comfortable environment. We closely followed the guidance of local and federal health experts—the Chicago and Illinois Departments of Health, the Centers for Disease Control, the World Health Organization—to protect customers and employees. And we closely coordinated with national transit peers to develop best practices. Our response involved a series of immediate and safety-focused actions, including: Tripling the resources to allow for the cleaning and disinfecting of our buses, trains, and stations throughout the day Implementing new cleaning tools to further enhance our already rigorous cleaning process, including the use of electrostatic sprayers which create a fine mist to clean and disinfect buses and trains more effectively Saturating the system with signage as part of a targeted customer education and awareness campaign highlighting the importance of social distancing, wearing masks, and following public health guidance Instituting new policies regarding vehicle capacity limits to promote social distancing and ensure the health and safety of riders and employees Closely monitoring crowding conditions and designing a CTA-specific “Ridership Information Dashboard” to allow riders to choose the best time to travel Piloting pop-up, essential bus lanes to allow for bus service to be prioritized Of course, none of this would have been possible without the unwavering commitment of the hardworking men and women that keep our system going 24/7. These essential workers were there when Chicago needed them the most, and showed up day after day to make sure Chicagoans could stay connected to the care and resources they needed. Sadly, the pandemic has personally impacted the lives of many of CTA’s own employees. And tragically, it claimed the lives of seven respected and dedicated CTA employees. These losses took a great toll on the CTA family, and we, as an agency, will always remember their service and commitment to our customers and the City of Chicago. All of the CTA’s efforts to provide service through the pandemic—to support our customers and help Chicago navigate the pandemic—were the right thing to do. But, they came at a cost. Unprecedented ridership loss has led to precipitous drop in revenue that’s continued through the year. And sales tax funding—a critical revenue source for the CTA— remains far below anticipated levels. Unfortunately, those trends are expected to continue in 2021. As such, we are projecting a 2021 budget shortfall of approximately $372 million. That projected shortfall is factored into my proposed 2021 operating budget of $1.65 billion. Over the coming weeks and months, we will continue to explore options to close that significant budget shortfall. The option we’ll pursue the most aggressively—and, indeed, the only prudent option—is securing additional federal funding. Not long after the start of the pandemic, Congress—recognizing the importance of public transit in addressing the then- evolving health crisis—provided $25 billion to transit agencies across the country via the CARES Act. The CTA received $817 million, which allowed us to continue our service and cover our operational expenses and revenue losses through 2020. As of this writing, the House of Representatives has passed another bill—the HEROES Act—that would provide $32 billion for transit agencies. Federal financial support for transit has, over the past several months, garnered widespread support and reaffirmed the value of transit in cities and towns across the country. I remain cautiously optimistic that Congress will continue to recognize the crucial role transit plays in our cities and communities, and I will continue to join my fellow transit leaders across the country to advocate for additional federal support. That federal funding is absolutely critical to the CTA’s 2021 budget. If that money doesn’t materialize, we will be facing the possibility of drastic and devastating reductions in service. That is an option of absolute last resort, and I pledge to do everything I can to avoid such a scenario. During the last seven months, the CTA has shown time after time how vital public transit is to the social fabric of our region. As Chicago and the region continue to address the pandemic, it’s clear that public transit is the backbone of our communities and the engine by which we continue to thrive even in hard times. As the post-pandemic world is still being defined, many questions remain. But there is no question that the CTA has carried us through, and the CTA will move us forward into better times. As we continue to deal with the devastating impacts of this pandemic in this upcoming year, I want you to know that I am committed along with the entire CTA family to do everything in our power to continue delivering the quality, affordable transit services that link people, jobs and communities, which our customers and our community expect and deserve. Sincerely, Dorval R. Carter, Jr. President [Printed page 6] [CTA Organizational chart] The Chairman of the Board and Board Members are at the top of the chart. Under the Chairman is the President. Under the President is the Chief of Staff, the Chief Operating Officer, Internal Audit and Equal Employment Opportunity. Eleven branches are under the President, as follows: The first branch has Planning at the top, with Strategic Planning, Scheduling & Service Planning, Community Relations, and ADA below. The second branch has General Counsel at the top, with Corporate Law & Litigation, Labor Policy & Appeals, Torts, and Claims below. The third branch has Transit Operations at the top, with Bus Operations, Rail Operations, Vehicle Maintenance, Rail Station Management, and Control Center below.
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