By JAMES FINK
jfink@bizjournals.com | 716-541-1611

Faced with a potential $15 million budget deficit in fiscal 2012-13, the Niagara Frontier Transportation Authority may be forced to adjust bus routes and raise some or all of fares.

But NFTA commissioners said transit fares aren't the only thing they will be looking as the authority grapples with what has become annual reductions in state aid. In the NFTA's current fiscal year, New York cut its aid by $4.3 million. The NFTA has a $192.7 million budget for fiscal 2011-12.

"We have not decided to increase fares on Jan. 1," said Commissioner James Eagan. "We will be looking at every nook and cranny and looking to save every penny before we start talking about fare increases. Fares are just a small part of a bigger problem."

Commissioners will be looking at other operational areas.

On Sept. 26, they spent 90 minutes reviewing possible reductions in routes or fare increases. No decisions were made as they agreed that more information is needed, including the cost per passenger for its routes. The NFTA handled 27.3 million Metro Rail and bus riders last year.

"Don't look for some happy ending here," warned Henry Sloma, interim chairman. "This is going to be hard."

The commissioners are tackling the fare and route review one year after the NFTA instituted a single price fare of $1.75 while reducing the cost of monthly passes. A handful of routes were either eliminated or scaled back last fall.

Thomas George, NFTA director of surface transportation, said numbers don't always tell the full story. Some routes are feeders to busier routes; others serve specific businesses or neighborhoods. Still others are directly tied to service the authority provides to the Buffalo School District.

"You have to have some semblance of balance when dealing with social issues," George said.

The commissioners are grappling with various scenarios, all of which focus on at least a slight increase in fares.

"Unfortunately, we may be shifting the responsibility to riders, to people who can least afford it," Sloma said.

Before any routes are cut or fare increases, the NFTA will hold a series of public meetings. Any changes must be in place by the start of the authority's fiscal year, which begins April 1.

Kim Minkel, NFTA executive director, said the authority must have a balanced budget in place at the start of each fiscal year.

"Everything is on the table," Sloma said.