July 22, 1995 in Nation/World

Budget Woes Halt Mobile Buses

Associated Press

City buses were ordered to stop running Friday when the transit authority ran out of money. The City Council refused to provide cash to keep the system afloat until a federal subsidy arrived.

After employees received a biweekly payment a week ago, the Mobile Transit Authority had only $9,000 in its account and $200,000 in debts, including fuel and maintenance costs.

A quarterly $61,000 federal subsidy payment is due at the end of August, earmarked for capital equipment.

Annually, the system receives about $1.3 million from fares, $1.3 million from the city and $882,000 from the federal government.

Last week, the city refused to turn over to the bus system $117,000 remaining in its transit budget.

The City Council claims the transit authority board has mismanaged the system and demanded its six members resign. Two have done so.

© Copyright 1995 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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