[BOOK FRONT COVER] [Picture of Art Work at Wilson Station – Red Line

[BOOK FRONT COVER] [Picture of art work at Wilson Station – Red Line] [Picture of bus at a bus stop – Loop Link] [Picture of Train at an “L” station – Loop] TRANSFORMING TRANSIT FOR THE 21ST CENTURY President’s 2019 Budget Recommendations [CTA Logo] [BACK PAGE OF FRONT COVER] CHICAGO TRANSIT BOARD AND CTA PRESIDENT Terry Peterson, Chairman Appointed by: Mayor, City of Chicago Arabel Alva Rosales, Vice Chair Appointed by: Governor, State of Illinois Kevin Irvine Appointed by: Mayor, City of Chicago Rev. Johnny L. Miller Appointed by: Mayor, City of Chicago Rev. Robert Patterson Appointed by: Governor, State of Illinois Alejandro Silva Appointed by: Mayor, City of Chicago Andre Youngblood Appointed by: Governor, State of Illinois Chicago Transit Authority Dorval R. Carter Jr., President TABLE OF CONTENTS [Table: List of sections with corresponding page number printed on the page] Letter from the President 1 CTA Organizational Chart 5 Executive Summary 7 Strategic Goals 21 2014-2021 Operating Budget Schedule 23 2018 Operating Budget Performance 27 President’s 2019 Proposed Operating Budget 35 President’s 2020-2021 Proposed Operating Financial Plan 45 2019-2023 Capital Improvement Plan & Program 48 Introduction 49 Sources of Funds 51 Uses of Funds 56 Capital Program Historical Comparison 76 Capital Program Asset Category Comparison 78 Competitive Grant Opportunities 80 Capital Funding Need – State of Good Repair (SOGR) 85 Operating Budget Impact 90 Appendices History of the Agency 93 Transit Facts 97 System Map 99 Operating Funding Summary 101 Debt Administration 109 Annual Budget Process 131 Accounting Systems and Financial Controls 135 Financial Policy 141 Economic Indicators 145 Operating Statistics 151 Performance Management 155 Comparative Performance Analysis 175 Climate Change Impact on the CTA 183 CTA Fare Structure 189 Comparative Fare Structure 191 Acronyms and Glossary 193 [PRINTED PAGE 1] LETTER FROM THE PRESIDENT Dear CTA customers: When most people think of “Chicago,” they think about a few things: stunning architecture, a beautiful lakefront, great food (and not just pizza), championship sports teams. But more often than not, they also think of the Chicago Transit Authority. Few transit systems in the world are so inextricably linked with their cities. The CTA is part and parcel of Chicago, as iconic as the city’s skyline. The CTA connects neighborhoods across the city, and every weekday 1.5 million customers take a CTA train or bus to work, to school, to visit friends and family, to enjoy the many cultural attractions, sporting events and community celebrations the region has to offer. But CTA also plays an important role beyond just getting people to their destinations. CTA has helped foster economic development and improve neighborhoods. CTA investments to modernize the system have created jobs, helped attract companies and spurred private investment in communities across the city. Since 2011, under the leadership of Mayor Rahm Emanuel, the CTA has embarked on an unprecedented level of modernization. More than $8 billion in projects—from new or completely rehabbed buses and rail cars, to new and rebuilt rail stations, to new and expanded technologies—have been completed, begun or announced over the last seven years. All of those investments are a step toward transforming the CTA into a 21st century transit system. For 2019, I am pleased to propose a balanced operating budget of $1.552 billion. I am also proposing a five-year, $2.9 billion Capital Improvement Plan (CIP) for 2019-2023. I’m also pleased to announce there will be no changes to CTA fares or service levels in the 2019 budget. The path to a balanced budget, one that holds the line on fares and preserves service, isn’t an easy one. Thoughtful planning, prudent management, and a focus on providing the highest possible level of service have been our guiding principles. But despite the historic infrastructure investment and our ability to hold the line on fares and service, the CTA faces challenges and uncertainty. For the fourth year in a row, the State of Illinois budget has reduced operating budget funding to support regional transit. CTA, which carries more than 80 percent of the region’s transit rides, has shouldered the largest portion of the state cuts: more than $46 million in reduced funding in 2018 and a projected additional $15 million reduction in 2019. That number could grow larger if the state extends the cuts in its FY2020 budget. Faced with dwindling and uncertain funding, the CTA has continually found ways to work more nimbly. Since 2011, we’ve realized $330 million in cost savings, operational efficiencies and additional, non-fare box revenue—more than 20 percent of our entire budget. Over $150 million of that has been achieved since I became President in May 2015, including the elimination of 145 management positions and freezing 150 positions. I also negotiated a labor agreement in 2018 that supported our hardworking men and women while preserving CTA’s commitment to providing the highest quality service. That agreement also secured the future of our nationally renowned Second Chance Program, expanding the program to help even more people begin the path toward productive careers. On the capital side, the CTA continues to grapple with the lack of state funding. Illinois has not passed a capital bill since 2009, a program that typically provides over $200 million per year for improvement projects. The lack of certainty posed by the absence of a consistent, long-term capital bill is a growing concern. If it’s not addressed soon, CTA will not be able to continue the critical investment seen over last several years. Despite those fiscal challenges, CTA continues to find ways to innovate and transform. We continue to modernize our bus and rail fleets, including the largest rail car purchase in the CTA’s history. The CTA’s new 7000-series railcars not only will help the agency maintain one of the youngest fleets among U.S. transit agencies, but the new vehicles will be assembled in a new manufacturing facility on the South Side of Chicago. Earlier this year, we placed an order for 20 new electric buses, which will give the CTA one of the largest electric fleets in the country. We continue to make smart, strategic investments in modernization, creating stations that exceed the expectations of the 21st Century transit customer. Transformative stations like 95th Street and Wilson have created new landmarks in their communities, while gateway projects at Garfield Green Line and Belmont Blue Line will help shape new identities for their neighborhoods. We continue to invest in technology that improve our customers’ experience—from additional Train and Bus Tracker screens, to expansion of our security camera network, to the continued evolution of our industry-leading Ventra app. In late 2018, I also will launch a pilot test of new display screens on buses, to provide real-time information to riders—the latest of many bus improvements I’ve pursued since becoming President. In 2019, the CTA will continue to face the challenges of a changing marketplace. Today’s world is less about transportation than mobility, and new marketplace competition, low gas prices and other factors have created a greater urgency to the CTA to innovate and transform. When I became President, I established three strategic goals to guide all of the agency’s initiatives: Safety, Customer Experience and Workforce Development. Through a multitude of projects and programs, we have made remarkable progress toward improving each of those key areas. Our customers have benefitted from myriad improvements we’ve made as part of our focus on those strategic goals. But we recognize there is still more work to do. For 71 years, CTA has been woven into the city’s fabric. Transit must remain as the lynchpin of a vibrant, sustainable city. CTA must remain agile, focused and innovative in order to continue the transformation that’s under way. It won’t be easy, but we are ready for the challenge. Sincerely, Dorval R. Carter, Jr. [PRINTED PAGE 5] ORGANIZATIONAL CHART [This is the 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 is Planning with Strategic Planning, Scheduling & Service Planning, Community Relations, and ADA below. The second branch has General Counsel at the top, with Corporate Law and Litigation, Labor Policy & Appeals, Torts, and Claims below. The third branch has Transit Operations at the top, with Bus Operations, Rail Operations, Vehicle Maintenance, and Facilities Maintenance below. The fourth branch has Safety, Security, & Control Center Operations at the top, with Safety, Security, and Control Center below. The fifth branch has Infrastructure at the top, with Power and Way, Engineering, Construction, and Real Estate below. The sixth branch has Strategy, Data & Technology at the top, with Technology, Data Analytics and Strategic Business Initiatives below. The seventh branch has Finance at the top, with Accounting, Budget & Capital Finance, Treasury, Revenue and Finance & Payroll Systems below. The eighth branch has Administration at the top, with Human Resources, Purchasing & Supply Chain, Diversity & DBE Compliance, Training & Workforce Development, and Performance Management below. The ninth branch is Legislative Affairs. The tenth branch is Communications. The eleventh branch is Red Purple Modernization. [PRINTED PAGE 7] EXECUTIVE SUMMARY 2019: Transforming Transit for the 21st Century OVERVIEW The Chicago Transit Authority (CTA) has remained part of the fabric of Chicago for more than 70 years. CTA provides 1.5 million rides every day and more than 80 percent of transit trips across Chicago and 35 surrounding suburbs.

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