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The Greater Cleveland Regional Transit Authority (GCRTA) is leaning toward cutting service next month, as stipulated in the current budget, but not following through with a plan to increase fares.

Earlier this week, GCRTA’s board met to discuss ways to balance the 2009 budget. The meeting was prompted by a recent sales tax report the authority classifies as one of the worst in GCRTA’s history.

The agency’s current budget calls for a implementing a 6 percent service cut and a 25-cent fare increase in September.

“In hopes of avoiding such action, we have generated internal efficiencies, made staff reductions and imposed a general non-union 3 percent salary cut,” said GCRTA General Manager and Chief Executive Officer Joe Calabrese in a prepared statement. “Unfortunately, the recession has caused our projected revenues to drop significantly. Based upon July sales tax receipts, we now anticipate that 2009 levels will be $18.5 million less than 2008 levels.”

In addition, the state of Ohio recently passed a measure that calls for trimming public transit funding an additional 33 percent. GCRTA now projects a $5 million budget deficit by year’s end “if action isn't taken immediately,” said Calabrese.

The authority’s staff recommends that GCRTA implement service reductions on Aug. 23, but not implement the fare increase, which was tied to diesel costs. The board will consider the recommendations.

“This step alone will not balance our budget, but will hopefully get us within striking distance, as we continue to work with the Ohio Department of Transportation and the Northeast Ohio Areawide Coordinating Agency on other strategies,” said Calabrese.