New Castle News

Local News

June 28, 2014

Council approves additional funds for transit

NEW CASTLE — New Castle City Council has approved additional funding for the New Castle Area Transit Authority to cover a budget shortfall.

Last year, council authorized $138,777 as the city’s share of local funding to match state and federal dollars for the current fiscal year that ends Monday.

The authority faced a $9,832 shortfall for the year ending Monday. The Lawrence County commissioners have agreed to cover $6,000 with county money, leaving a $3,832 shortfall, which will be picked up by the city.

The additional funding, approved Thursday, will come from council’s contingency account.

By covering the shortfall, the authority will be able to receive an increase in funding from the state of $206,000 for the current fiscal year.

Council also authorized the expenditure of an additional $4,032 to the authority for the next fiscal year, beginning Tuesday, to cover an anticipated shortfall. Last month, council approved $145,716 as the city’s share of the local match for the fiscal year. It represents a 5 percent increase over the current fiscal year.

David Richards, assistant general manager of the transit authority, said the county commissioners have committed $15,750 in county funds toward reducing the shortfall for the next fiscal year.

Covering next year’s shortfall will enable the authority to receive an increase in funding of $100,000 from the state.

The city’s share for the next fiscal year will be paid from the 2015 city budget to be adopted in December.

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