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Reform and Renewal: Improving Mass Transit in a New Economy

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Reform and Renewal: Improving Mass Transit in a New Economy Reform and Renewal: Improving Mass Transit in a New Economy President's 2012 Budget Recommendations CTA FY12 Budget Chicago Transit Board Terry Peterson, Chairman Appointed by: Mayor, City of Chicago Jacquelyne Grimshaw, Vice Chairman Appointed by: Governor, State of Illinois John Bouman Appointed by: Governor, State of Illinois Kathryn McClain Appointed by: Governor, State of Illinois Charles E. Robinson Appointed by: Mayor, City of Chicago Alejandro Silva Appointed by: Mayor, City of Chicago Forrest Claypool, President transitchicago.com 1-888-YOUR-CTA CTA FY12 Budget Table of Contents Letter from the President ........................................................................................................................................ 1 CTA Organizational Chart ........................................................................................................................................ 3 Executive Summary ................................................................................................................................................... 5 2011 Operating Budget Performance 2011 Operating Budget Performance Summary ........................................................................................ 17 2011 Operating Budget Schedule ..................................................................................................................... 23 President’s 2012 Proposed Operating Budget President’s 2012 Proposed Operating Budget Summary ....................................................................... 25 President’s 2012 Proposed Operating Budget Schedule ......................................................................... 31 President’s 2013­2014 Proposed Operating Financial Plan President’s 2013‐2014 Proposed Operating Financial Plan Summary ............................................. 33 President’s 2013‐2014 Proposed Operating Financial Plan Schedule .............................................. 37 2012 – 2016 Capital Improvement Plan & Program Introduction ............................................................................................................................................................... 39 Uses of Funds ............................................................................................................................................................. 42 Sources of Funds ...................................................................................................................................................... 62 Capital Grants ............................................................................................................................................................ 65 Unfunded Capital Need ......................................................................................................................................... 71 Operating Budget Impact ..................................................................................................................................... 73 Capital Program Acronyms .................................................................................................................................. 75 Appendices History of the Agency ............................................................................................................................................. 77 Transit Facts .............................................................................................................................................................. 81 System Map ................................................................................................................................................................ 83 Operating Funding Summary ............................................................................................................................. 85 Debt Administration ............................................................................................................................................... 93 Annual Budget Process ....................................................................................................................................... 107 Accounting Systems and Financial Controls.............................................................................................. 111 Financial Policy ...................................................................................................................................................... 115 Economic Indicators ............................................................................................................................................ 119 Operating Statistics .............................................................................................................................................. 127 Performance Management ................................................................................................................................ 131 Comparative Performance Analysis.............................................................................................................. 149 CTA Fare Structure ............................................................................................................................................... 157 Comparative Fare Structure ............................................................................................................................. 159 Acronyms and Glossary...................................................................................................................................... 161 (THIS PAGE INTENTIONALLY LEFT BLANK) CTA FY12 Budget Letter from the President Dear CTA Customers: For over 60 years, the CTA has provided the critical mass transit arteries to carry people throughout Chicago and 40 suburban communities. Whether moving people to work or play, our trains and buses facilitate easy interaction between the suburbs, city neighborhoods, and downtown. With more than 1.6 million rides on CTA buses and trains on the average weekday, including 250,000 throughout the downtown area, we know that every moment of every day people are depending on the CTA for their transportation needs. The CTA is a great transit agency with a great history. But like many governments and busi- nesses, it faces extraordinary financial challenges requiring immediate attention. Since 2008, the CTA has borrowed more than $554 million to cover the cost of day-to-day operations. These loans helped the CTA through difficult economic times, but provided neither a solution to the root causes of the agency’s financial instability nor a long-term plan to make the CTA solvent. As a result, fare hikes in 2009 and deep service cuts in 2010 only temporarily eased the CTA’s financial pressures. We are confronted by costly collective bargaining agreements with inflexible work rules, an inadequate funding formula that hurts the CTA, and a faltering economy. Despite eliminat- ing jobs and fostering management initiatives to improve efficiency, we are facing a record budget deficit. Absent fundamental reform, including an end to cumbersome union work rules, the agency’s longstanding structural financial imbalance will remain, with the consequence of a new downward spiral of layoffs, service reductions, fare hikes, and lost ridership. But with leaner and better management, labor reform, and aggressive service improvements, we can permanently fix CTA’s finances, preserve good jobs, increase ridership, and invest in our future. In five months, our administration has cut hundreds of positions and launched aggressive management efficiencies, saving tens of millions of dollars. The result is a lean manage- ment structure, with an average of 21 front-line staffers for every manager, and the smallest number of employees in the CTA’s history, with 25 percent fewer employees than a decade ago. We have also launched innovative new initiatives to improve the rider experience and encour- age new riders and revenue. To improve security, we added more police and thousands of new security cameras. To improve the convenience of our customers, we are rolling out Bus Tracker technology at our bus shelters to let passengers know exactly when their bus is coming. To improve the cleanliness and aesthetics of our rail stations, we launched the 1 CTA FY12 Budget Letter from the President “Renew Crews”—SWAT teams of tradespeople to deep clean, repair, and improve more than 100 of our stations and subways. We’re securing hundreds of new rail cars with modern technology and passenger amenities. And many more improvements are underway. But even the most innovative service and the leanest management cannot make up for an embedded cost structure that far exceeds the national norm—mostly driven by antiquated work rules that benefit a small number of individuals at the expense of everyone else. Our challenge is to work with our employees, and their respective unions, to move the CTA’s methods of operation from mid-century to the 21st Century. Together, we can reform and renew an agency central to regional economic growth and the quality of life in our neighbor- hoods. Forrest Claypool 2 CTA FY12 Budget Organizational Chart Board Chairman Members of the Board Office of the Inspector General President Chief of Staff Legislative Transit Safety & Planning Infrastructure Administration Law Affairs Operations Finance Communications Security Human Strategic Bus Power & Corporate Law Resources & Compliance Planning Operations
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