Friday, April 15, 2005

CTA service cuts don't make sense

On the face of it, this puzzles me: How can a 55 mil cut in an organization whose budget is about 1 billion cause such a drastic effect? Among others, they are laying off 2000 employees which if make 20,000 a year is already 40 mil right there. Some back-of-the-envelope calculations forthcoming.

1 Comments:

Blogger klenk said...

I'll give you a couple of extreme arguments.
1) None of the people being laid off are making 20,000 dollars a year....looking at the VP salaries they appear to be around 300,000 dollars a year. so i can't think that people who drive the buses make less that 20,000.
2) When you lay people off, you still have to give them lay-off package. Therefore laying this many people off really does not save all of their salaries.

There is a section on the budget called "GOVERNMENT AFFAIRS & AFFIRMATIVE ACTION" There are no subdivisions of this part of the budget and it is 2.7 million dollars a year.

100 million dollars are spent on management.

2:50 PM  

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