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Yesterday, Chicago Transit Authority (CTA) President Frank Kruesi unveiled his 2006 budget recommendations, which call for raising fares but maintaining service levels.

Kruesi proposed a $1.04 billion operating budget, which includes a $524 million public funding level. The budget would increase 4.1 percent or $40.6 million compared with 2005 because of higher fuel and healthcare costs, and claims and litigation expenses.

CTA originally faced a $90 million budget shortfall in 2006, but increased state and Regional Transportation Authority funding have reduced the deficit to $49 million. To help make up the difference, CTA proposed raising cash fares 25 cents. Pass prices and Chicago Card fares would not increase. In addition, the authority plans to transfer $29 million in capital funds to the operating budget.

CTA also proposed a five-year, $1.8 billion capital improvement program, which includes spending $41 million and $65 million to conduct preventative maintenance in 2006 and 2007, respectively. Other capital projects include the ongoing Brown Line capacity expansion and Howard Station renovation.