The CTA projects a balanced budget as required by law. The public funding mark set by the Regional Transportation Authority (RTA) is $529.3 million. This public funding level is $92.5 million lower than in 2008 and $257.9 million lower than projected following the passage of the state's mass transit funding and reform bill (HB 656) in 2008.

To make up the difference between what it has and what it needs, the CTA will transfer $113 million in eligible capital funds to the operating budget. Although the State is experiencing its own financial struggles, the CTA is relying on it to meet its commitments to the agency for operating funds for this year and next, and capital funds that have been promised.

The Recovery Ratio, which measures the portion of operating expenses the CTA has to fund from revenues it generates, is forecast at 54.6 percent, which is higher than the required ratio set by the RTA and considerably higher than the recovery ratio required in other transit systems across the country.

In the coming year, the CTA will be moving ahead with the first order of new rail cars in more than 15 years. Also under way is a new initiative that will transform the way customers pay for transit and allow the CTA to avoid an upfront capital cost to upgrade fare equipment. The CTA also plans to implement a biometric time and attendance system that will increase accountability and allow for better analysis due to more centralized data.

The 2011 budget includes a Capital Improvement Plan of $599.5 million, including $285 million in new state funding promised in the recent state capital program. Once those funds are received, the agency is ready with a list of projects that include overhauling buses; rehabilitating bus garages and rail stations; upgrading substations and replacing track to eliminate and prevent slow zones.

Also, following the approval by the Chicago Transit Board of a 10-year contract with Sprint Solutions, Inc., Sprint/Nextel became the sixth wireless service provider to lease the use of CTA's subway communications infrastructure. CTA will receive approximately $3.1 million over the life of the contract. Installation and testing of Sprint's base equipment - comprised of amplifiers, transmitters and receivers - within the subway will take place over the next several months. Following installation, service is expected to begin in early 2011.

In 2005, CTA completed the installation of technology to enhance CTA's existing two-way radio system and improve subway communications options for CTA, the Chicago Police Department and Chicago Fire Department in the Red and Blue line subways. The improved telecommunications system also laid the groundwork for the agency to generate additional revenue by leasing its wireless infrastructure for commercial service to allow the use of wireless devices, such as cell phones, text messaging and wireless Internet modems throughout the 11.4-mile subway system.

Sprint joins AT&T, Verizon Wireless, U.S. Cellular, T-Mobile and Cricket as the current wireless service providers in CTA's subway system. U.S. Cellular became the first wireless provider to lease use of the infrastructure in 2006, while Verizon Wireless signed on in 2008, and AT&T, Cricket and T-Mobile signed on in 2009.

CTA anticipates the leasing of the subway network to the wireless service providers to generate a minimum of $15 million for the CTA over the life of the contracts.