By Christina Zdanowicz
Medill Reports - Chicago

Transit riders and CTA employees breathed a joint sigh of relief Wednesday afternoon as the Chicago City Council approved a way to fund pensions and a retiree health care plan for CTA workers.

A reluctant City Council voted to increase the city's real estate transfer tax from $7.50 per $1,000 to $10.50, as authorized by the mass-transit bailout bill passed on Jan. 17.

If collection begins in April, the CTA is expected to generate $63 million from its share of the tax through the end of 2008.

When asked if the $63 million was enough to cover pensions through the rest of the year, CTA spokeswoman Noelle Gaffney said, "We'll make it work with whatever we get from this."

If the city failed to pass the tax increase, the CTA would have had to divert money from its operating budget - money used to keep the system running from day to day.

The diversion would have led to yet another doomsday scenario of cuts in service.

"Certainly we think it's a great relief to CTA customers throughout the region because this has been a very challenging year for them," Gaffney said.

"It's good to have resolution, finally."

She said CTA employees agreed to the sacrifices, having to contribute more and forgo pay increases last year and this year.

Ald. Isaac Carothers (29th) was the sole council member to bring up the sacrifices CTA employees have had to make to keep transit running. He cited employees having to give up raises and deal with repeated