Top News

CTA President Frank Kruesi Resigns

Daley Recommends Chief Of Staff Ron Huberman As New CTA Boss

Get breaking news alerts

CHICAGO (CBS) ― Chicago Transit Authority President Frank Kruesi has resigned, and Mayor Richard M. Daley has picked his own chief of staff to take Kruesi's place.

As CBS 2 Political Editor Mike Flannery reports, Kruesi will likely move to another powerful position within the mayor's administration.

America's second-largest mass transit system is on a collision course with fiscal disaster. After warning unhappy state legislators last Monday that a looming budget crisis could force elimination of hundreds of bus routes and jobs, CTA President Frank Kruesi on Thursday stood next to Daley and announced it was "time to go."

Mayor Daley immediately named his Chief of Staff Ron Huberman as Kruesi's replacement.

The change comes as the Chicago area's mass transit systems look for federal and state money to fill gaping holes in their budgets.

A recent audit by Illinois Auditor General William Holland found that the CTA and its sister agencies in the region -- Metra rail and Pace suburban bus service -- have operating and capital needs this year of $800 million to $1 billion.

As CBS 2's Rob Johnson reports, Daley may have sensed that Kruesi had worn out his welcome at the state capitol and removed him from the job.

On a recent tour of the Red Line, Kruesi touted increased ridership and new infrastructure. But with a massive budget shortfall on the horizon, and acrimony with lawmakers in Springfield on how to fix it, Kruesi stepped down Thursday.

In fact sources tell CBS 2 news that recent comments from lawmakers likely sealed his fate.

"I don't know that five billion is a realistic number for Mr. Kreusi," said Rep. Tom Cross (R-84th) in reference to the amount of money Kreusi was requesting for transit.

"Maybe Kruesi thinks we have a printing money machine downstairs," sad Rep. Emil Jones (D-14th).

Daley headed to Washington Thursday, in part to press the city's agenda with lawmakers in Washington, including asking for transportation funding.

"We hope that the dollars are there," he said.

Kruesi has been at the helm of the CTA since October 1997, Kruesi, after a stint as an assistant secretary in the U.S. Department of Transportation.

Recently, he has overseen the construction of the Pink Line 'L' on the West and Southwest sides, which was completed last year, and the reconstruction of the Brown Line on the North and Northwest sides, which is now in progress.

But Kruesi has also been the subject of widespread criticism for threatening service cuts when asking for money from Springfield and underestimating the requirements of the Brown Line reconstruction project, which have involved station closures and service slowdowns.

Also working against Kruesi were high-profile embarrassments like last year's Blue Line derailment, increased slow zones to accommodate major construction projects and a recent state report which criticized the CTA for a poorly funded pension and high absenteeism. Nevertheless Kruesi is proud of his 10-year tenure.

Kruesi has also been a close friend of the mayor's for about 35 years, going back to when Mayor Daley was a state senator. Kruesi and Daley were even roommates for a period of time.

Daley said he didn't ask Kruesi to resign, calling him "one of my best advisers." Daley also didn't say who would replace Huberman in his administration.

Some are speculating that Kruesi might be handling part of the city's bid for the 2016 Olympics. The city became the U.S. pick for the Olympic host city contest last weekend.

Kruesi says as he departs, a commitment to additional funding for the CTA from the State of Illinois is a paramount concern.

"We are now poised where we need to be for Springfield action," Kruesi said. "It struck me as a good time to go because I've been doing this for a long time, and also because we got through the winter well, the three-track operation (on the Red, Brown and Purple lines) went well, and really now it's up to the General Assembly."

Mayor Daley agreed that the CTA was in need of additional funding.

"I want to be assured that riders and taxpayers, of course, are getting their money's worth," Daley said. "As you know, the Illinois General Assembly will demand the same assurance as a condition for providing the increased funding that the CTA needs so badly."

Some members of the state General Assembly have been disappointed in Kruesi and wanted him out before voting for additional funding.

Daley chalked up service disruptions on the 'L' to an old system in need of repair without enough money over the years to do it. Overall, he said the service has been good, but "it can get better."

Meanwhile, the mayor praised Kruesi for revamping rail lines, rehabbing rail cars and making buses handicapped accessible.

Long-time Kruesi critics, including South Side State Rep. Marlow Colvin, immediately applauded the resignation, which as yet has no effective date. Colvin told CBS 2 that CTA's incoming new president, Mayoral Chief of Staff Ron Huberman, must do a better job on service reliability, cleanliness and transparency of decision-making.

Some commuters are also hoping for improvements.

"The service is always slow," complained commute Neil Taylor. "Like, sometimes down here on Clark, you wait for 30 minutes."

"Some days it's good," said commuter John Going. "And some days it's bad."

Pointing to system improvements already underway, Kruesi said he would have done an excellent job under difficult circumstances.

"Overall, I think the CTA is better than it was when I came," he said. "We have more customers, renewed infrastructure and exciting plans for a bright future."

The CTA and its sister transit agencies, Metra, PACE and the RTA have told legislators they need a total of $400 million in new operating money this year just to avoid service cuts and layoffs, and a whopping $10 billion for capital projects to repair and expand the system.

Huberman has served as Daley's chief of staff since 2005. Before that, he spent a year as chief of the Office of Emergency Management and Communications, and spent several years before that as a Chicago Police officer.

At Thursday's news conference, Huberman said he had hands-on transportation experience because he drove a school bus for three years while in college. He said he was committed to belt-tightening at the CTA and other changes because "the mayor has made it clear to me that everything's on the table."

Transportation experts CBS 2 spoke with Thursday night said despite having scant transit experience, he can be successful as long as he exhibits strong management skills and listens to the people who understand the intricacies of the CTA.

"The mayor has made my mission clear," Huberman said. "The CTA must meet its passengers' expectations, it must be clean, it must be safe, it must be carried out courteously and it must be on time."

(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)