PUBLIC TRANSIT: An Essential Key to Recovery President’s 2021 Budget Recommendations FY21 BUDGET 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 Judge Gloria Chevere Kevin Irvine Vice Chair Board Member Board Member Appointed by: Governor, State of Illinois Appointed by: Governor, State of Illinois Appointed by: Mayor, City of Chicago Dr. L. Bernard Jakes Rev. Johnny L. Miller Alejandro Silva Board Member Board Member Board Member Appointed by: Governor, State of Illinois Appointed by: Mayor, City of Chicago Appointed by: Mayor, City of Chicago Dorval Carter Jr. President FY21 BUDGET TABLE OF CONTENTS Table of Contents System Map ................................................................................................................ 1 President’s Letter ........................................................................................................ 4 Organizational Chart .................................................................................................... 6 Executive Summary ..................................................................................................... 8 Strategic Goals ......................................................................................................... 26 Operating Budget Schedule ........................................................................................ 28 2020 Operating Budget Forecast ................................................................................. 32 2021 Proposed Operating Budget ............................................................................... 36 2022-2023 Two-Year Financial Plan ............................................................................. 42 Operating Revenue Summary ...................................................................................... 44 Performance Management & Statistics ......................................................................... 48 Performance Management .......................................................................................... 48 Operating Statistics ..................................................................................................... 52 CTA Fare Structure ..................................................................................................... 54 Comparative Performance Analysis ............................................................................. 55 Capital Improvement Program ..................................................................................... 58 Appendices ............................................................................................................... 84 History of the CTA ....................................................................................................... 84 Debt Administration ..................................................................................................... 86 Economic Indicators .................................................................................................... 95 Annual Budget Process ............................................................................................... 98 Accounting Systems, Financial Controls & Policy ....................................................... 100 Sustainability Initiatives .............................................................................................. 103 Acronyms & Glossary ................................................................................................ 106 FY21 BUDGET SYSTEM MAP 1 FY21 BUDGET SYSTEM MAP 2 (THIS PAGE INTENTIONALLY LEFT BLANK) 3 FY21 BUDGET 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. 4 FY21 BUDGET PRESIDENT’S LETTER 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