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Budget shortfall means NFTA may cut service

Thu, Dec 22nd 2011 12:00 am

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

With a nearly $15 million projected hole in its 2012-13 budget, the Niagara Frontier Transportation Authority's board of commissioners approved a plan that sets into motion a reduction in service for 57 bus and Metro Rail routes.

The cuts, if enacted, won't take effect until the start of the fiscal year, April 1, and only after a series of public hearings the week of Jan. 30 in Erie and Niagara counties. The cuts are a central part of the $197.9 million operating budget for 2012-13. The entire budget package was approved by a 7-3 count from commissioners.

"The impact on the region is severe," said Eunice Lewin, board vice chair and chairman of the Surface Transportation System committee.

Route cuts and other changes could help close the gap by at least $7.1 million. Additional savings would come from staff layoffs.

The pending cuts drew the attention of Buffalo Mayor Byron Brown, who addressed NFTA commissioners on the budget and its potential impact on the community. His appearance marked the first time in at least two decades that a Buffalo mayor has attended a commissioners meeting and made comments to the board.

Brown said he is concerned because of an estimated 80 percent of the more than 29 million passengers who ride NFTA buses or use Metro Rail are city residents.

"I didn't come here to preach to you," he said. "But, as mayor, I hate to see you cut service because of the number of people who rely on your service."

He said he is lobbying Albany lawmakers and the New York Power Authority to release funds or offer incentives, suc h as low-cost hydropower allocations, that could help the NFTA close its budget gap and reduce the number of route cuts. The NFTA is seeking 8 megawatts of low-cost hydropower.

Henry Sloma, NFTA acting chairman, said he is miffed at New York state, which allocated $250 million aid to New York City's cash-poor Metropolitan Transit Authority but rejected a request for $10 million, made earlier this fall, by the local transit authority.

"I thought we'd at least get an honorable mention," Sloma said.

Among the routes being considered are weekend service on Route No. 44, a bus that runs between the University at Buffalo South Campus and CrossPoint Business Park in Amherst. CrossPoint is home to such businesses as Geico and Bank of America, which operate call centers that run seven days a week. Route 206, meanwhile, provides Buffalo State College students with access to nearby Wegmans and Tops supermarkets.

Also on the chopping block: weekday and Saturday service between Erie Community College's North, City and South campuses.

The bulk of the NFTA's financial woes comes from cutbacks in state operating assistance, as well as rising operating expenses including fuel costs. The irony is that the NFTA is looking at a record number of riders on its bus and rail system - at least 29 million by the end of the current fiscal year and maybe closer to 30 million, said Kim Minkel, executive director.

"The last thing we want to do is strand any rider," Minkel said.

The new budget calls for the elimination of 50 employees, including 20 from the transit police force. If all the bus and rail route changes are enacted, another 120 employees could be facing pink slips.

"There was a lot of thought and a lot of pain that went into this budget," Sloma said. "It is the hardest decision I've had to make. What we did today is going to impact a lot of people."

He and Minkel said they hope there is enough of an outcry that Albany lawmakers free up funds for the NFTA and some of the route cuts are postponed or dropped.

However, both said the short- and long-term fiscal picture doesn't look any better in the ensuing years because of cuts in operating assistance and rising costs.

"Next year's problem is probably going to be worse and worse again, after that," Sloma said. "I think the public needs to be heard loud and clear on this."