PORT ANGELES – Clallam Transit System on Monday became the second government in Clallam County to adopt a deficit budget – with a third entity expecting to run into red ink.
The anticipated $150,000 shortfall in the bus system’s $17.45 million budget, however, is more than offset by a $500,000 surplus for 2007.
In addition, transit officials said the deficit is due to a conservative estimate of sales tax revenues that support the transit network.
The money to balance the budget next year will come from the system’s operating reserve that will receive this year’s $500,000 boost.
That reserve stands at about $2 million, and Clallam Transit maintains a capital reserve that also totals $2 million.
Clallam Transit expects to meet its revenue target of $8 million for 2007 – despite a $100,000 dip projected for sales tax revenue – thanks to a 2 percent reduction in spending.
