Budget time

[Busjack]

Perhaps the underlying problem is in the introduction to the Budget Book:

Since 2008, the CTA has borrowed more than $554 million to cover the cost of day-to-day operations.

Basically, one can't go in hock to pay operating expenses, unless one figures out some way to get revenue to pay it off. The same goes for Quinn's fraudulent RTA bonding plan to freeze fares in 2010.* That's like going to the payday lender.

If that's the previously undisclosed legacy of Huberman and Rodriguez, things are more up Bubbly Creek** than we thought. I was wondering how they were going to pay off all the financial leases and the like.

But what is it, since the capital part says:

Over the last four years, the CTA has diverted $554 million in capital funds to fill budget gaps.

It is one thing if they bonded out the debt, but something else if they used capital money for maintenance. That might have deferred other necessary work, but is not owed to creditors.

So, Forrest Gump again talks out of both sides of his mouth.

______

*Page 22 of the budget (26 of the pdf) indicates that CTA got the proceeds, but it isn't indicated whether the state came through with its promised reimbursement to the RTA.

**Used a local reference instead of the usual scatological one.

[BusHunter]

Looks like we won't have to worry about CTA cuts anytime soon. Crain's (story on top of headlines)reports the unions have until July next year to comply with the concessions. Most likely they'll end up working without a contract again after this year. Don't know what says about budget 2013, but it should be clear skies ahead for now.

[Busjack]

Looks like we won't have to worry about CTA cuts anytime soon. Crain's (story on top of headlines)reports the unions have until July next year to comply with the concessions. Most likely they'll end up working without a contract again after this year. Don't know what says about budget 2013, but it should be clear skies ahead for now.

The assumption on what Hinz says Claypool said, is that only 1/2 year of labor savings is contemplated in the budget. I don't know that the budget actually says that. There are mentions throughout of "this saves this, that saves that," but there wasn't a spreadsheet of all the purported savings. For instance, how he gets to $110 million in management savings seems to be a stretch, but at least he can impose that unilaterally.

"Working without a contract," while technically true if there is not a signed document, has a different meaning in labor relations. In the private sector, it usually is "work under management's last offer or strike." However, in cases subject to arbitration, and especially in the CTA's case, it generally is under the old contract, until the sides settle or the arbitrator rules.

Given when Kruesi was in power, the arbitrator did not rule in CTA's favor and Kruesi said that the board had to accept it, Claypool is going to have to have much better luck with the arbitrator if it gets that far.

[jacksone44]

The work rules that are published to the public are borderline insane. Instead of instantly going to the state or feds for additional funding, I'm very encouraged that Claypool is attacking the "structural" problems with the CTA before instantly resorting to fare increases or service reductions if they arent bailed out. The state legislature bailed out the CTA in 2008, riders forked over more through a fare increase in 2009, riders also dealt with service reductions in 2010, and the non-unionized workforce and management layoffs that has occurred in the last few years. Everyone has given something substantial over the last few years except the unions. I sure hope Claypool and management role up their sleeves high for a long and tough fight over the next few months to fight for what is deserved. It would be completely unfair to the stakeholders of the CTA (riders, taxpayers, etc) to fork over more if these work rules aren't changed. I work at the MTA in NYC and our union contracts are up at the end of the year as well, and were gearing up for a similar fight.

[BusHunter]

The work rules that are published to the public are borderline insane. Instead of instantly going to the state or feds for additional funding, I'm very encouraged that Claypool is attacking the "structural" problems with the CTA before instantly resorting to fare increases or service reductions if they arent bailed out. The state legislature bailed out the CTA in 2008, riders forked over more through a fare increase in 2009, riders also dealt with service reductions in 2010, and the non-unionized workforce and management layoffs that has occurred in the last few years. Everyone has given something substantial over the last few years except the unions. I sure hope Claypool and management role up their sleeves high for a long and tough fight over the next few months to fight for what is deserved. It would be completely unfair to the stakeholders of the CTA (riders, taxpayers, etc) to fork over more if these work rules aren't changed. I work at the MTA in NYC and our union contracts are up at the end of the year as well, and were gearing up for a similar fight.

I couldn't help but notice in the CTA budget, MTA charges $5 to ride there BRT. Since you work for MTA, do you know if the service has healthy ridership? I would think with the extensive subway network, (I'm told 80 percent of New Yorkers ride it) there would be heavy competition between the two services. As far as our budget and the upcoming talks with the union, Claypool seems to be trying to get public outcry going against the union. If they get enough pressure on them or put them in a compromising position they may give up some things. That would be something no one has done yet around here. It sounds easier than it is. I don't know if operating next year will put them further in the hole. We'll be hearing about it again next summer.

[MetroShadow]

I couldn't help but notice in the CTA budget, MTA charges $5 to ride there BRT. Since you work for MTA, do you know if the service has healthy ridership? I would think with the extensive subway network, (I'm told 80 percent of New Yorkers ride it) there would be heavy competition between the two services. As far as our budget and the upcoming talks with the union, Claypool seems to be trying to get public outcry going against the union. If they get enough pressure on them or put them in a compromising position they may give up some things. That would be something no one has done yet around here. It sounds easier than it is. I don't know if operating next year will put them further in the hole. We'll be hearing about it again next summer.

SBS (Bx12 and M15) pays local fare. Express Buses pay $5.50. To my understanding, ridership on both routs serve their intended purpose (especially since M15 buses get crowded as a result of the Lex).

Knowing that what Claypool is doing (as opposed to the status quo), it wouldn't be unreasonable if we don't hear about this until the summer. That is, if the Unions will bargain their way out of this.

[Busjack]

.. As far as our budget and the upcoming talks with the union, Claypool seems to be trying to get public outcry going against the union. If they get enough pressure on them or put them in a compromising position they may give up some things. That would be something no one has done yet around here...

Another thing to figure is that since ATU Local 241 has been put in receivership and Darrell Jefferson is no longer the face of the ATU on TV (you only see Kelly from Local 308), which way that cuts in (1) PR presence, and (2) the union's ability to negotiate (i.e. whether some receiver from the International wants to look and act as bull dog as a local president would).

One also has to figure that since CTA (under Rodriguez) went through with the threat to lay off 1000, whether union members will take that threat more seriously this time.

Of course, I agree that what you said seems to be about the only thing Claypool is trying to do, and about the only thing Emanuel lets him do unaccompanied by Emanuel.

[Busjack]

Before almost clicking, I realized that the point goes here:

The mindset is they may as well have a car if there's going to be nothing left worth riding and they have to pay out more money for it.

Emanuel is making owning a car in the city too costly, between city stickers, parking congestion taxes, and red light and speeding cameras (not to mention that Preckwinkle wants to raise the sales tax on cars). However, the question may be what they do with taxi fares relative to bus fares, and whether stuff like I-Go or Zipcar (hourly rental of compact cars) will be competitive.

Obviously, by relying only on service cuts and not fare increases the last time results in more crowding than otherwise, and, despite the partial repeal of free rides for seniors, one has to wonder if CTA is getting everyone to pay (I'm thinking more of freeloaders, residents of the hobo corner, and turnstile jumpers, even if they hit their heads on the conduits over the turnstiles, rather than the alleged Metra problems). For instance, federal law doesn't require half fares during rush hour, but there isn't the political will in Illinois to abolish that.

[BusHunter]

Before almost clicking, I realized that the point goes here:

Emanuel is making owning a car in the city too costly, between city stickers, parking congestion taxes, and red light and speeding cameras (not to mention that Preckwinkle wants to raise the sales tax on cars). However, the question may be what they do with taxi fares relative to bus fares, and whether stuff like I-Go or Zipcar (hourly rental of compact cars) will be competitive.

Obviously, by relying only on service cuts and not fare increases the last time results in more crowding than otherwise, and, despite the partial repeal of free rides for seniors, one has to wonder if CTA is getting everyone to pay (I'm thinking more of freeloaders, residents of the hobo corner, and turnstile jumpers, even if they hit their heads on the conduits over the turnstiles, rather than the alleged Metra problems). For instance, federal law doesn't require half fares during rush hour, but there isn't the political will in Illinois to abolish that.

If all this passes driving in the city will become very slow. School zone speed limit is 20 MPH, not 30 like most major streets. They may be banking on that notion, if your not paying attention to it. If everyone has to drive that slow the stops signs on the main streets should be removed. I don't see a safety issue anymore. As far as rental cars being a deal, the city is way ahead of us, they charge 20 percent tax on any rentals in the city of Chicago, kind of makes you wonder if moving a business to Rosemont would be smarter. (I don't know if it's a state law or not) I hear they don't pay property tax. No wonder they had the same mayor for 50 years. As far as CTA, the bad economy (sales tax receipts) are no doubt hurting the budget. The time spent giving seniors free rides didn't help that. I think it's just a matter of the economy improving. That actually may start to happen if these gas prices continue to fall. They are a major driving force controlling the market and grocery prices. Then we have labor. (the Claypool issue) You have to think about it, as we live longer we continue to collect pension money that the company pays for. You also have senior employees making $29/hr. That would be almost $45 an hour if working on Sunday. $58/hr on there birthday. And that's one employee.

[Sam92]

"Sneed hears Gov. Pat Quinn plans to ride the Red Line Thursday, culminating in the announcement of a major commitment to improving the CTA, which faces a $277 million budget deficit next year."

Quoted from the Chicago Suntimes. Wonder what he's going to try this time

[Busjack]

"Sneed hears Gov. Pat Quinn plans to ride the Red Line Thursday, culminating in the announcement of a major commitment to improving the CTA, which faces a $277 million budget deficit next year."

Quoted from the Chicago Suntimes. Wonder what he's going to try this time

Other than saying that he can release the liquor tax money, anything else would be fake.

[greenstreet]

"Sneed hears Gov. Pat Quinn plans to ride the Red Line Thursday, culminating in the announcement of a major commitment to improving the CTA, which faces a $277 million budget deficit next year."

Quoted from the Chicago Suntimes. Wonder what he's going to try this time

Look for BIG money. Big capital money.

[Busjack]

Look for BIG money. Big capital money.

Well I guess you got your answer here. If the money is actually there, Rahm can quit complaining, although it seems like here Quinn is taking credit for several projects that were announced funded from other sources, and we will have to wait and see if the fixing of slow zones by 2015 actually means that the slow zones will stay gone in 2017.

[trainman8119]

Well I guess you got your answer here. If the money is actually there, Rahm can quit complaining, although it seems like here Quinn is taking credit for several projects that were announced funded from other sources, and we will have to wait and see if the fixing of slow zones by 2015 actually means that the slow zones will stay gone in 2017.

Can someone explain to me, how, if the State is so broke to the point they still haven't coughed up the $$$ to Metra/Pace/CTA that is past due (unless I missed something) for operations, how do they have money to cough up on a single project like this ????

[Busjack]

Can someone explain to me, how, if the State is so broke to the point they still haven't coughed up the $ to Metra/Pace/CTA that is past due (unless I missed something) for operations, how do they have money to cough up on a single project like this ????

The answer is what I said above about the liquor tax.

Back in 2009, the state passed two series of capital bills, the second of which raised the license plate sticker from $78 to $99, raised the liquor tax, legalized video poker, imposed the normal sales tax rate (rather than the food one) on pop and candy and dedicated it to the capital fund, and raised other fees.

W. Rockwell Wirtz sued basically because of the liquor tax imposed on him. While he won in the appellate court, he eventually lost in the Illinois Supreme Court. In the meantime, the liquor tax collected from Sept. 2009 stayed in escrow pending the outcome of that litigation, which has had its outcome. Similarly, Jesse White, Secretary of State said that the license plate sticker increase would have to be refunded if they lost, but they didn't, so it won't be.

Similarly, the Pace budget in effect spends this money for a big chunk of the 171 buses (the contract award of which still hasn't been announced, even though it was in last month's consent agenda).

I've drunk so much diet pop that I have a continual case of flatulence, so they may as well start the construction.

____________________________

Update on my last post:

The Sun-Times seems to have a better rundown, including that some of the announced projects (Wilson and Clark and Division) already received some city and federal funds.

It also seems from the Wilson grant, and saying that they are going to replace all the ties on the Purple Line north of Belmont, that anything other than repairs to the North Red Line is out of the question (besides their noting that a funding source has not been found).

They also talk about upgrading substations on the stretch south of 18th. I know I got into a debate with Sam on the CTA Tattler about the scope of the last project, but upgrading the substations was definitely within that scope. Hence I reiterate that I wonder if the fix by 2015 will last to 2017.

________

Update to this post:

Since I sent Kevin of the CTA Tattler over to this thread and to the RPM thread, I added links here to the otherwise obvious legal history points made.

[Sam92]

The answer is what I said above about the liquor tax.

Back in 2009, the state passed two series of capital bills, the second of which raised the license plate sticker from $78 to $99, raised the liquor tax, legalized video poker, imposed the normal sales tax rate (rather than the food one) on pop and candy and dedicated it to the capital fund, and raised other fees.

W. Rockwell Wirtz sued basically because of the liquor tax imposed on him. While he won in the appellate court, he eventually lost in the Illinois Supreme Court. In the meantime, the liquor tax collected from Sept. 2009 stayed in escrow pending the outcome of that litigation, which has had its outcome. Similarly, Jesse White, Secretary of State said that the license plate sticker increase would have to be refunded if they lost, but they didn't, so it won't be.

Similarly, the Pace budget in effect spends this money for a big chunk of the 171 buses (the contract award of which still hasn't been announced, even though it was in last month's consent agenda).

I've drunk so much diet pop that I have a continual case of flatulence, so they may as well start the construction.

____________________________

Update on my last post:

The Sun-Times seems to have a better rundown, including that some of the announced projects (Wilson and Clark and Division) already received some city and federal funds.

It also seems from the Wilson grant, and saying that they are going to replace all the ties on the Purple Line north of Belmont, that anything other than repairs to the North Red Line is out of the question (besides their noting that a funding source has not been found).

They also talk about upgrading substations on the stretch south of 18th. I know I got into a debate with Sam on the CTA Tattler about the scope of the last project, but upgrading the substations was definitely within that scope. Hence I reiterate that I wonder if the fix by 2015 will last to 2017.

Weren't rail stations upgraded in the last Dan Ryan project as well? Why are they being target again along that stretch unless they plan on adding elevators and making them accesible this time. Still raises some questions there.

[Busjack]

Weren't rail stations upgraded in the last Dan Ryan project as well? Why are they being target again along that stretch unless they plan on adding elevators and making them accesible this time. Still raises some questions there.

Supposedly, although as you note some got elevators and others didn't, but the construction reports at the time indicated that they got new floors, canopies, bridge at 33rd, some new or rehabbed entrances, and paint. See, e.g., Dec. 12, 2006, Nov. 14, 2006 (probably more comprehensive on what they said they did).

[Sam92]

Supposedly, although as you note some got elevators and others didn't, but the construction reports at the time indicated that they got new floors, canopies, bridge at 33rd, some new or rehabbed entrances, and paint. See, e.g., Dec. 12, 2006, Nov. 14, 2006 (probably more comprehensive on what they said they did).

I remember riding past all of this deffinately. 69th and 95th were rebuilt with new pavement for terminals and bus stops were rearranged. One other thing I'm wondering is if they are planning on spreading solar power to the other stations. Panels were recently installed at 95th back in May along with LED lighting.

[Busjack]

I remember riding past all of this deffinately. 69th and 95th were rebuilt with new pavement for terminals and bus stops were rearranged. One other thing I'm wondering is if they are planning on spreading solar power to the other stations. Panels were recently installed at 95th back in May along with LED lighting.

The issue basically comes down to what we sparred over on the CTA Tattler when you said they only removed electrical slow zones--they did something in 2006 which they said fixed the problems, but apparently now CTA is either ignoring that work or backing down on its scope.

Obviously, they spent $250 million on something that had the trains on the expressway, torn up platforms, and all the pictures in the construction report. Probably paint doesn't last more than 4 years, but the other work should have.

However, except for tweeting, CTA has not said why that work was a Homer Simpson half assed job or misrepresented or why if upgrades were made then further ones are needed now. That brings up the last point I made there, which is why Claypool continues the Kruesi and Huberman practice of denying what anyone can see on the public portions of the property.

[Sam92]

The issue basically comes down to what we sparred over on the CTA Tattler when you said they only removed electrical slow zones--they did something in 2006 which they said fixed the problems, but apparently now CTA is either ignoring that work or backing down on its scope.

Obviously, they spent $250 million on something that had the trains on the expressway, torn up platforms, and all the pictures in the construction report. Probably paint doesn't last more than 4 years, but the other work should have.

However, except for tweeting, CTA has not said why that work was a Homer Simpson half assed job or misrepresented or why if upgrades were made then further ones are needed now. That brings up the last point I made there, which is why Claypool continues the Kruesi and Huberman practice of denying what anyone can see on the public portions of the property.

Well, like I said they hit crossovers for sure but if they told you they did trackwork outside of the crossovers and Cermak to 47th then they are deffinately lying about that (I'm a Red Line rider I can tell you all that I've seen happen). I seen platform work being done as in the reports, signals, electricity and substations were supposedly worked on and I think two were removed so I don't know why the substation on Princeton is being targeted again. So they half assed the first project for sure if they are going to do that stuff again or maybe the upgrades would be solar power or elevators for 87, 63rd and Garfield. I totally get you now on that point with this now popping up and maybe they will make this one last like the O'hare branch Blue Line is so far

[New Flyer]

The sub station at 98th will probably be work done beams have been holding up the outside wall for years, and probably put in elevators at 63rd,55th, and 47th.

[artthouwill]

Looking at the Metra proposal for new fares beginning in , I could not help but note the large increase in fare between Zones B and C. A Zone B ticket one-way is $3.00 to downtown, but a one-way Zone C ticket to downtown is $4.25? EAch zone afterward is $.50 incrementally, as is the difference between an A and B zone ticket. I wonder if those in Zone C with access to CTA (Evanston UP-N, ME, and RI) will actually consider CTA or bite the bullet.

[Busjack]

Looking at the Metra proposal for new fares beginning in , I could not help but note the large increase in fare between Zones B and C. A Zone B ticket one-way is $3.00 to downtown, but a one-way Zone C ticket to downtown is $4.25? EAch zone afterward is $.50 incrementally, as is the difference between an A and B zone ticket. I wonder if those in Zone C with access to CTA (Evanston UP-N, ME, and RI) will actually consider CTA or bite the bullet.

This is basically the source of my comment to Mike Payne that the preachers got fooled, or they don't think the train goes south of 79th on the ME mainline [apparently they do on the South Chicago branch, all of which is in Zone B].

Essentially the big jump between B and C has always been there (at least in recent history), being justified by Metra saying that people were not willing to pay the fare that the usual 50 cents per zone would have otherwise required. The current jump is 25 cents from A to B and $1.00 from B to C.

The original chart showing the proposed 2012 fares had a fairly even slope, resulting in the alleged huge percentage fare increase to Zone B. Metra resolved that complaint by raising the base single ride fare 50 cents and keeping the same increments. It looks like monthlies went up proportionately more, about 25-33%.

However, from what Metra says about passenger loads, the main beneficiaries appear to be the Mayor's neighbors at the UPN Ravenswood station, also in Zone B. Also, if riders were about to bite the bullet, it doesn't appear that Metra has removed the extra service it provided on the UPN from Winnetka supposedly at Carole Brown's request to alleviate overcrowding during the 3 track project, and the riders from Central St. Evanston were the most vocal about the proposed Metra single track, even though they could have taken the Purple Line. So, I don't think that that many will be migrating to the CTA.

[Sam92]

Heard this morning on the way to work about Emmanuel now proposing ORANGE line, yes I'm saying Orange Line improvements. Anybody in that area have any clues to what's being done? Tracks seem to be in pretty good condition and the signal project was finished by the time I was done with night school at Curie High School (bout February). Maybe they're slowly trying to convert the system to all plastic ties where possible?

[csl3407]

Heard this morning on the way to work about Emmanuel now proposing ORANGE line, yes I'm saying Orange Line improvements. Anybody in that area have any clues to what's being done? Tracks seem to be in pretty good condition and the signal project was finished by the time I was done with night school at Curie High School (bout February). Maybe they're slowly trying to convert the system to all plastic ties where possible?

I didn't hear anything about improvements to the Orange Line, but Emanuel was at the Orange Line Midway station that morning introducing the new 5000 series cars, before they went into service on the Pink Line. Maybe those cars were the improvements that you heard about - maybe they were talking about the "new, improved" cars. Just a thought.