The effects of a funding cap on the SuperGold Card free bus transport scheme are likely to be worse than initially feared, with a $1.3 million national shortfall looming.
That comment was made this week by Otago Regional Council chairman Stephen Woodhead, who recently said he was ''mighty frustrated'' over budget pressures arising from the proposed funding cap changes.
The Government plans to put an annual $25 million cap on reimbursement funding to regional councils and other councils operating the SuperGold scheme.
The SuperGold free off-peak travel scheme, for people aged 65 or older, is a Ministry of Social Development-funded initiative, with the subsidy distributed by the New Zealand Transport Agency.
Mr Woodhead is also chairman of Local Government New Zealand's regional sector group and will be chairman of a meeting in Wellington today at which problems arising from the cap will be discussed.
The mayors, chairmen and chief executives of the 16 regional and unitary councils that make up the LGNZ regional sector are expected to attend.
Mr Woodhead is concerned about the potential impact on Otago ratepayers if there were a shortfall in southern reimbursement subsidy funding.
It had initially been thought the funding cap's effects would not be immediate, but analysis now indicated a shortfall was likely before the end of this financial year, he said.
