Laketran's 2009 Recovery Plan Paying Off

By Max Reinhart The News-Herald www.news-herald.com Laketran General Manager Ray Jurkowski says the local bus service’s 2009 financial recovery plan has kept Lake-tran afloat amid a difficult time for public transportation. The plan was devised to make up for millions in operating budget losses when the nation fell into recession in 2008. “It felt like we were standing in quicksand,” Jurkowski said. While part of the recovery plan included an 11 percent cut to services, it also called for management to cut expenses and find new revenue streams. Laketran leaders said they’ve been successful on both those fronts. Since 2009, the employee count has shrunk from 200 to 166. “We re-organized, froze and abolished positions,” Jurkowski said. Additionally, Laketran’s employee union has agreed to a labor contract with no salary increase for the past five years. Jurkowski said the freeze applies to salary positions and non-union employees as well. Leaders also cite Laketran’s participation in a fuel consortium — this year they paid about $2.34 per gallon for diesel fuel — and changes to employee benefit programs as cost-savers. In addition to saving money, Laketran has formed partnerships with community organizations like Lake County Job and Family Services and Deepwood Center to bolster its budget. Medicaid, in many cases, will pay for medical transportation, which makes up a sizable portion of Laketran’s business. “We knew we could get some money but we weren’t sure how to navigate the maze,” Jurkowksi said. “These organizations have helped us with that, and we help them by providing the rides these people depend on.” Revenue from partnerships accounted for about $58,000 of the bus service’s operating budget in 2008. In 2012, that figure was over $1.2 million. The prudent spending and local cooperation has allowed Laketran to restore some of the service cuts it made when the recovery plan was enacted. In 2010, an hour of weeknight service was restored. For the past two years, buses have made two additional hours of stops over the holiday season. Jurkowksi said nearly 5,000 riders per week taking advantage of the extra hours, an indication the federal and state governments should step in and develop a long-term plan for national transportation and infrastructure. “Everyone’s waiting for what happens at the federal level,” he said. “The uncertainty prevents any long-term planning.”

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