PORT TOWNSEND –More than a life raft may be needed to keep Port Townsend-Keystone ferry terminal improvements afloat following budget cuts in Olympia last week.

In the state supplemental budget finished last week, the Legislature cut more than $15 million from Washington State Ferries’ $45 million vessel and terminal acquisition fund for 2004-05.

An extra $1 million was given to State Ferries to study ways to keep operating out of Keystone Harbor instead of moving the terminal away from the narrow, shallow inlet on western Whidbey Island that has canceled ferry runs and even grounded a boat.

Ferry officials said they will meet Monday to discuss how the budget changes will affect a plan to accommodate new, larger vessels on the local route.

For the past two years, ferry planners have promoted an idea that includes possible relocation of the Keystone terminal and an expansion of the Port Townsend terminal.

At least one member of the Legislature is pushing to keep the larger vessels away.

Sen. Mary Margaret Haugen, D-Camano Island, represents Island County and is strongly opposed to the proposed changes.

“We’re not interested in a bunch of big boats coming off of Whidbey Island,” she said last week.

“I don’t think our roads can handle it and don’t think (Port Townsend’s) can either.”