The possibility of funding drying up for the SuperGold Card, which gives elderly free trips on city's buses, is worrying the Otago Regional Council.
Staff identified a "significant shortfall" in the council's funding allocation from the New Zealand Transport Agency for the free off-peak travel scheme in Otago, corporate services director Wayne Scott said.
This year's transport agency allocation, for the 100% government-funded scheme, was less than requested by council.
"Based on the current allocation, it is projected this year's funding for the scheme will run out in March 2010."
Cr Stephen Woodhead said if the funding ended part way through a year, card-holders would continue to expect free bus trips, which would impose a significant cost on ratepayers.
"There are some real challenges here."
Mr Scott said the council had agreed to the scheme on the basis it was 100% government funded and it did not have a budget to pick up any shortfall.
If a shortfall occurred, the council would have to look at changing the parameters of the scheme and cut back to "stretch" funding out.
In 2008-09 SuperGold card-holders took 9.42% of trips on regional council-contracted services.
The transport agency had indicated the allocation was "an interim" measure and there was a contingency of national funds, surplus from 2008-09 year, to be allocated case by case, he said.
Cr Duncan Butcher said the situation was a real concern and the council needed to be kept up to date with the situation.
If, by the council's December meeting, a shortfall was looking likely, it would need to look closely at how to access the contingency and talk to the transport agency.
