Governor Blagojevich’s last-minute bailout spared CTA riders long-threatened doomsday hikes in fares and cuts in services–for the moment. Still, without a permanent tax hike to close the budget gap of $110 million a year the CTA is likely to slash bus routes and raise fares to as much as $3 a ride. At the same time, the local property tax machine is gearing up to send out property tax bills that will jump as much as 100 percent for some home owners. And what’s the city’s response to this pending crisis?
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Upon his return he blasted his favorite targets, Blagojevich and state legislators, for failing to send him more money to pay the CTA’s bills–as though he had nothing to do with the current mess. But the mayor appoints four of the CTA board’s seven members. The current president, Ron Huberman, used to be Daley’s chief of staff; his predecessor Frank Kruesi also was the mayor’s chief of staff. Kruesi ran the CTA for ten years during which Daley steadfastly ignored the pleas of legislators, employees, and riders to fire him. Just why Daley remained so loyal to the rude and prickly Kruesi is one of those City Hall mysteries that may never be solved.
The development money comes from the tax increment financing districts, Daley’s favorite program, a virtual slush fund he controls that diverts over $400 million in property taxes a year from the schools, parks, and county. Not a dime of it goes toward a dysfunctional public transportation system.
Not to worry. Huberman and Daley blamed Kruesi, who conveniently retired a few weeks after February’s election. The CTA board announced that it will fix the tracks, corroded rail ties and worn-out screws included, with a $91.2 million repair project. How will the bankrupt agency pay for it all? They’re going to borrow the money from future federal grants, selling bonds and paying back the bondholders with the money. If the feds don’t come through, well, they’ll deal with that later too.
