Daley Sees No Easy Out For CTA's Pensions

June 13, 2006

Chicago Mayor Richard Daley says it isn't clear how the Chicago Transit Authority will get the funds it needs for its pension obligations.

This comes a day after House Speaker Michael Madigan told the CTA it won't get any more state money to cover the deficit.

Daley says he doesn't see an easy solution.

"The state's not gonna give it," he says. "They can't tax it. Where they gonna get it? They can't go to the lottery. They can't go down to the boats and think they're going to win there. They're not going to win it. I mean, how you gonna do it? That's going to be a major issue for them."

The CTA estimates the payments to pension funds will cost over $200 million each year starting in 2009.

Daley says he hasn't heard of plans to raise transit fares.

The CTA declined comment.