RTA News

May 26, 2009

RTA salaried employees to see a 3 percent cut

CLEVELAND � In a continuing effort to balance the 2009 budget, the Greater Cleveland Regional Transit Authority (RTA) has already:

� Reduced salaried positions by 5 percent.

� Frozen wages for all salaried employees.

Now, RTA�s 287 salaried employees will see their wages reduced by 3 percent, effective May 31.

The move will save RTA some $400,000 � hardly enough to make up a projected $12 million to $15 million decline in revenue from a one percent countywide sales tax.

Besides the actions listed above, RTA has also:

� Instituted a partial hiring freeze.

� Restricted travel.

� Received supplemental funding from the Northeast Ohio Areawide Coordinating Agency (NOACA).

� Reduced overtime by more than $2.5 million over 2007 levels.

� Started an energy management program, which is expected to reduce costs by $5 million over projections.

RTA is taking these additional steps:

Additional restrictions on travel.
Additional restrictions on filling open positions.
Continuing to work with State officials, and NOACA officials, on supplemental funding.
Reducing inventory expenses.
Identifying �one-time� funding sources.
Working with union officials in the Amalgamated Transit Union (ATU) and the Fraternal Order of Police (FOP) on reducing costs.

�We realize that this move will not solve all of our budget challenges this year, but it will help,� says Joe Calabrese, RTA�s CEO and General Manager.

�We have already taken a number of steps to balance our budget, and now we are doing even more. Our goal is to preserve existing service levels and fares, so that Greater Clevelanders can continue to have transit access to their employers, and continue to support their families.�

�Before RTA can consider additional service cuts and/or another fare increase, we need to do whatever we can internally, to help balance our budget.�

�I thank our employees for their hard work, dedication and understanding,� Calabrese says. �They know first-hand the importance of what we do for our customers and our community. It is my hope that this temporary salary reduction can be reversed soon.�

FOR MEDIA INQUIRIES ONLY:

Jerry Masek, 216-566-5211