Transit agency projects $9 million dollar budget shortfall by years end

Joe Calabrese talks to Newsradio WTAM 1100's Nate Marinchick

(Cleveland) – Ridership remains strong, but RTA leaders say they may need to consider job and service cuts if they can't find a way to close a growing budget gap caused by a drop in county sales tax revenue.

RTA General Manager Joe Calabrese says 200 to 300 jobs could be cut and service could be reduced by 9% to 12% if the agency can't find a way to fill a shortfall that's expected to grow to $9 million by years end.

Calabrese says the Cuyahoga County sales tax which accounts for most of RTA's operating budget has failed to meet projections as the economy has soured. He anticipates the tax will generate $12 million dollars less this year than it did last year.
 
RTA leaders are now working with the governor's office and ODOT to identify state and federal funds that may be shifted to the system, Calabrese says. He says RTA is receiving money from the government directly as part of the huge economic stimulus, but that money can only be used for capital projects and maintenance.

Calabrese says he's hopeful a solution can be found and job and service cuts can be avoided. Last year, a governor's task force recommended that the state increase funding for public transit. If the system for funding transit in the state is not changed, Calabrese says the problem of yearly budget gaps is likely to continue.

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