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CTA reports year‑end revenue gains but warns of a large fiscal gap for 2026–27
Summary
Tom McCone, CTA chief financial officer, told the board the agency finished the fiscal year with revenue modestly above budget and a designated operating reserve derived from federal relief funds, but staff project an operating gap of about $600 million in 2026 that grows to roughly $642 million in 2027.
Tom McCone, Chicago Transit Authority chief financial officer, presented the agency’s December and year‑end financial results and answered board questions about the agency’s remaining federal relief funds and projected budget gaps for 2026 and 2027.
McCone reported system‑generated revenue for the year of about $440.7 million, roughly $13.2 million better than budget and $28.6 million ahead of the prior year, with farepass revenue and pass adoption cited as contributors. Non‑farebox revenue finished about $1.6 million positive to budget for December largely from investment income, and public‑funding receipts (including sales tax) were also positive to budget for the month and year‑to‑date.
On expenses, McCone said year‑end labor adjustments, additional FICA payments and accruals for sick and holiday time increased December costs; the agency recorded higher injuries and damages payments (about $31 million paid this year) and added roughly $10 million back into the injuries and damages reserve. Security services finished the year at about $91 million with next‑year budgeting at $85 million.
McCone said the CTA withdrew remaining federal relief funds from the related grants to create a designated operating reserve. He reported a December beginning balance of $687 million, a $61 million withdrawal in December leaving a $626 million balance. McCone and board members discussed planning for the end of those federal relief funds: staff projected a gap of roughly $600 million for 2026 that grows to about $642 million in 2027 and said staff are preparing materials for legislators and the public that quantify service impacts if additional funding does not materialize.
Board members asked about federal policy changes, grants for capital projects and whether secured discretionary federal grants (including funds for Red‑Purple modernization and the Red Line extension) are at risk. McCone said the CTA continues to draw against awarded and obligated federal grants and has not yet seen a direct impact from recent federal policy changes but will monitor grant activity closely.
Directors pressed staff on outreach to legislators and regional partners; McCone and another staff presenter said the CTA is laying groundwork to explain the likely service impacts of funding reductions and is coordinating with the Regional Transit Authority, which has discussed scenarios with service‑reduction estimates. McCone said service adjustments would be a primary lever to close a gap of the size projected.
