Otago Regional Council chairman Stephen Woodhead raised that issue in a report tabled at yesterday's council meeting, and commented further at the meeting.
As the council yesterday set multi-year budgets linked to its latest 10-year long-term plan, the ORC faced the prospect of an unknown and unbudgeted drain on its projected spending because of the Government's GoldCard funding move, involving free off-peak travel for people aged 65 or older.
The ORC yesterday asked its staff to start working on possible options to enable the ORC to keep to its budgeted spending involving SuperGold Card-linked bus use, given the prospect of capped state funding.
ORC councillors heard that potential options could include adding a possible $1 payment to SuperGold Card transport use, to supplement the limited central government subsidy level.
But seeking such a payment might not be possible, because it could breach fundamental aspects of the national subsidy scheme agreement, which involved a free travel concession, councillors heard.
Other options could include somewhat limiting the Otago off-peak hours for free travel.
Mr Woodhead noted that the Ministry of Transport had written to regional councils advising of several changes to the SuperGold Card public transport scheme.
Crown funding for the scheme was to be capped at $28.129 million per year for the next five years, with annual consumer price index adjustments to account for inflation. Individual fare reimbursements now offered to regional councils would be replaced with bulk funding.
Mr Woodhead said these changes would adversely affect ratepayers and were little more than a ''blatant transfer''of costs from a ''Crown-instigated scheme to local government''.
''Capping at current levels means any future growth and cost increases above CPI will have to be met by targeted ratepayers,'' he said.
He noted public transport costs were rising faster than CPI; and the ''market'' of retired people was growing, given an ageing population; and community awareness about the free rides was also rising.
The timing of the information about the scheme's revised funding ''could not have been worse'', given that the ORC had already finalised some transport contracts and was yesterday formally approving its multi-year budget under its amended long-term plan, he said.
ORC chief executive Peter Bodeker said the council would contact Local Government New Zealand to raise its concerns and to seek a solution to the funding cap move.
ORC staff would also study potential options that could be implemented to keep transport subsidy funding within agreed limits, he said in an interview.
