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The Port Authority of Allegheny County will receive $45 million in state funding to help offset a budget shortfall that would have resulted in steep layoffs and a 35 percent cut in services.

The Southwestern Pennsylvania Commission voted 27-22 on Dec. 13 to provide the authority with $45 million in unspent federal highway funds. Earlier this month, Pennsylvania Gov. Ed Rendell called for the funds to be used to help offset the authority’s $47 million budget deficit and to avoid an "unprecedented" cut in services and layoffs.

The authority still plans to raise fares on Jan. 1. Service reductions will occur and layoffs are likely, but not at previously projected levels, authority officials said in a prepared statement. Authority planners are analyzing service cuts for the current fiscal year, which ends June 30, 2011. Service reductions also could be implemented in the next fiscal year, which starts July 1, 2011.