MVTA budget squeezed by Met Council - "Sun-Current Today" TV news - Thursday, Dec. 10

Some local buses could be on the risk of going bust next year.

The Minnesota Valley Transit Authority Board of Directors approved an operating budget for 2010 last night that will leave its reserves at dangerously low levels if more funding isnt secured.

MVTA, which provides transit service in Apple Valley, Burnsville, Eagan, Rosemount and Savage, will use $3.6 million from its reserves to maintain its level of service next year. Its remaining reserves will be enough to cover just 1.8 months of expenses well below the MVTAs own four-month reserve policy.

According to MVTA Executive Director Beverly Miller, the budget squeeze comes as the result of legislation last session the let the Metropolitan Council withhold $7 million from suburban transit providers to balance its own deficit. The suburban providers were asked to spend down their reserves instead.

The MVTA specified in its budget it would need about $3 million additional funding to stay within its four-month policy.

Director Jane Victory, who leads the boards Finance Committee, said if MVTAs reserves reach the 1.8-month level, cuts in service will be necessary.

Check for more in next weeks Sun-Current newspaper.

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