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CTA cuts, fare hikes unveiled to offset $158 M deficit

<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">Rather than a "doomsday" scenario, the Chicago Transit Authority's proposed 2008 budget was euphemistically characterized Friday as a "back-to-basics" plan.</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">Either way, it lays out drastic cost-saving solutions: steeper fare increases, the suspension of 43 more bus routes and 1,800 additional layoffs.</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">CTA President Ron Huberman said his agency is legally obligated to impose such measures in January unless the legislature provides a source of extra revenue to offset a projected $158 million deficit for the coming year. The bus and train system provides 1.6 million rides each weekday.</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">"This is grim; this is difficult," Huberman told reporters at a briefing. "This will impact people in a very terrible way. ... We are simply out of options."</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">The measures Huberman outlined are on top of smaller-scale fare hikes, layoffs and bus-service cuts already planned for the earlier so-called doomsday of Nov. 4, when an advance on state transit funds runs out.</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">The combined cuts would eliminate 82 bus routes - 53 percent of existing routes - by January, leaving an estimated 250,000 riders stranded, the CTA said. </font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">Existing rail service would continue, but train riders who pay $2 cash per ride would fork over $3.25 during "peak" service hours beginning next year.</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial"><span style="mso-spacerun: yes"> </span>Administrative and operational layoffs at the CTA would rise to 2,436 - nearly one-quarter of its existing work force. The CTA would close three of eight bus garages, Huberman said.</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">The CTA's sister transit agencies - the Metra suburban train system and Pace suburban bus network - have experienced similar cash crunches. Directors of Pace and Metra also are facing potential fare increases and service cuts to offset deficits in 2008.</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">Huberman's announcement Friday is expected to put additional pressure on state lawmakers to fix the CTA's structural budget problems, though elected leaders disagree on how to do that. Gov. Rod Blagojevich has said he'll veto pending legislation that would increase the regional sales tax that helps fund the Chicago-area transit agencies.</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">Blagojevich spokeswoman Abby Ottenhoff said the governor agrees there is need for a "long-term mass transit resolution."</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">Huberman warned that roads will become more congested under the pending CTA doomsday because most transit riders have the option and means to take cars or cabs to work.</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">"For folks who are in a car and think that this does not impact them ... (they) are in for a rude awakening," he said.</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">The CTA board is expected to vote on Huberman's proposed budget next month.</font>

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<p class="BODY" style="margin: 0in 0in 0pt"><font face="Imperial">Mike Ramsey can be reached at (312) 857-2323 or ghns-ramsey@sbcglobal.net.</font>

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