The Electric Commentary

Tuesday, May 31, 2005

State caves on CTA

You're going to love this. The CTA is the Chicago Transit Authority, AKA my Archnemisis. They were having budget problems. They are currently suffering a $55 million shortfall in their operating budget. They're swimming in construction and maintenance money, but they are forbidden from diverting those funds and asked the state to bail them out. The state is going to bail them out:

The Blagojevich administration said the deal will channel at least $46.7 million to the CTA and enable the cash-strapped transit agency to avert its cash crisis, prompting statements of optimism from the agency but no assurances to riders of what comes next.

"I am not aware of the details of what is under discussion," CTA spokeswoman Noelle Gaffney said. "What I can tell you is the chairman and president . . . were encouraged by what they're hearing."

The state is not exactly rolling in cash either. I wonder where they came up with the money...

Gov. Blagojevich and top Democratic lawmakers struck a budget deal Thursday that will pump cash into the Chicago Transit Authority and fill a $1.2 billion deficit by slashing payments into state pension systems. (Emphasis added.)

Oh yeah. That won't cause any problems.

So basically, the CTA has hundreds of millions of dollars set aside for new construction and maintenance, but instead of using that money to fill their operating budget, they're going to raid pension funds.

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