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Greater Cleveland Regional Transit Authority (GCRTA) officials expressed disappointment last week after members of the Amalgamated Transit Union (ATU) Local 268 rejected the terms of an agreement that was recommended by a fact-finder appointed by the State Employee Relations Board.

GCRTA’s funding was reduced by nearly $25 million in 2009 due to a decline in sales tax and other revenues. After failing to reach a cost-cutting agreement with the union, GCRTA reduced services by 12 percent and laid off more than 130 employees yesterday.

“Trying to keep as many people in good-paying jobs while preserving transit service is a balancing act. But the reality is clear — when revenues are down, you have to make reductions in one, or both,” said GCRTA Chief Executive Officer and General Manager Joe Calabrese in a prepared statement.

After two days of hearings in February, the independent fact finder recommended an 18-month wage freeze as part of a 30-month contract; wage increases of 3 percent in 2011; plan design changes and increased co-pays for health care; elimination of longevity payments in December; and more paid time for operators to perform pre-trip inspections for trains and buses.

ATU members voted to reject the recommendations.