Otago Regional Council member Louise Croot is concerned that a planned funding cap on the SuperGold Card free bus travel scheme could prove costly for ratepayers.
At a recent meeting of the council's finance and corporate committee, council corporate services director Nick Donnelly said the Crown had signalled a change to the way the free off-peak scheme was to be funded.
The Crown wished to move to a bulk funding arrangement with councils, as opposed to the current system under which funding for each trip was reimbursed at 65% of the equivalent adult cash fare.
The bulk funding arrangement had been scheduled to begin last month, but after "significant lobbying'' by Local Government New Zealand's regional sector group, the Crown had agreed to retain the existing arrangement for this financial year.
This move was to allow the councils and the NZ Transport Agency (NZTA) to work through "an appropriate allocation method'', Mr Donnelly said in a report.
Cr Croot welcomed LGNZ's success in highlighting the issue and delaying the bulk funding arrangements.
But she told the committee she remained concerned, and said ratepayers should not be subsidising the Crown-initiated scheme at any stage.
ORC chairman Stephen Woodhead also chairs the LGNZ regional sector group.
The free off-peak travel scheme, for people aged 65 or older, is a Ministry of Social Development-funded initiative.
The subsidy is distributed by the NZTA.
