advertisement

---

Faced with a potential $18 million loss in state funds in fiscal-year 2009, the Sacramento Regional Transit District (RT) has proposed raising fares up to 25 percent and cutting bus service on Jan. 1, 2009.

The California budget calls for cutting transit spending by $1.4 billion. If approved, it would be the second-straight year transit funds  have been diverted to the general fund to balance the budget. Last fiscal year, RT implemented cost-containment measures and reduced bus service by 5 percent to balance its budget after the state cuts.

"RT is at the point where we can no longer absorb this magnitude of cuts to transit funding without increasing fares or implementing service reductions — or a combination of both," said General Manager and Chief Executive Officer Mike Wiley in a prepared statement.