CTA president says unions key to avoiding fare hikes

The president of the Chicago Transit Authority says the agency can address a $277 million budget deficit without fare increases or service cuts if unions agree.

CTA President Forrest Claypool said Wednesday that he will use $117 million in management savings and $160 million in cuts largely from labor reforms and limited wage growth. There also will be changes to health care benefits in the 2012 proposed budget that totals $1.24 billion.

Claypool says he’ll have to make changes to the budget if savings can’t be made by July 1 through negotiations with unions.

Those changes would start with severe service cuts and up to 1,000 layoffs and then possible fare hikes.