KABS Facing Significant Financial Hurdles
July 28, 2016 at 4:25 p.m.
Despite already having tightened their belts in the past year, officials with KABS are facing even more financial difficulties in 1997.
Kosciusko Area Bus Service raised fares a year ago in preparation of an estimated 17 percent cut in federal funding effective Jan. 1.
Although they've made preparations for the upcoming year, KABS is looking at more financial difficulties in 1998, said director Tom Sherrin.
More reductions in funding loom as a result of policies prescribed by the government for Cardinal Center, an agency that works with disabled people which represents a significant portion of KABS users.
With a decrease in centralized programming at Cardinal Center for some clients, Cardinal expects an overall reduction in the use of KABS - and therefore plans to reduce its funding for KABS.
For years, Cardinal has provided the 20 percent local match for a government fund that KABS depends on for much of its funding. In 1996, Cardinal's support dropped from $172,000 to $157,000.
Much of that is because the government's share is decreasing.
"Before it was very advantageous for us to do that, but we can't say it's very beneficial now," said Jane Green, executive director of Cardinal Center. "That's the most I can say right now. We're evaluating it year to year."
Although clients may not need transportation to Cardinal Center, their need for transportation will continue to exist, Green said.
Sherrin expects to learn more of Cardinal's impact next spring when KABS assembles its 1998 budget.
KABS's long-term existence could be threatened if Cardinal Center no longer supports KABS financially, Sherrin said.
"I don't think we're in any imminent situation of closing down, but it's obviously something we want to address because we are looking at the possibility of reducing services next year," he said.
"It's an issue the community needs to talk about. It needs to consciously make decisions about what it wants," Sherrin said.
KABS increased its fare about a year ago and eliminated fixed routes in exchange for more demand-based service to save money. Other cost-cutting steps have also been taken, and instead of buying three new buses, as scheduled, KABS chose to overhaul three existing buses, Sherrin said.
In coming months, Sherrin said he wants to discuss with representatives of the city of Warsaw the possibility of some city support for KABS. Those talks may also extend to the county, which provides some funding for Cardinal, but none outright for KABS. [[In-content Ad]]
Despite already having tightened their belts in the past year, officials with KABS are facing even more financial difficulties in 1997.
Kosciusko Area Bus Service raised fares a year ago in preparation of an estimated 17 percent cut in federal funding effective Jan. 1.
Although they've made preparations for the upcoming year, KABS is looking at more financial difficulties in 1998, said director Tom Sherrin.
More reductions in funding loom as a result of policies prescribed by the government for Cardinal Center, an agency that works with disabled people which represents a significant portion of KABS users.
With a decrease in centralized programming at Cardinal Center for some clients, Cardinal expects an overall reduction in the use of KABS - and therefore plans to reduce its funding for KABS.
For years, Cardinal has provided the 20 percent local match for a government fund that KABS depends on for much of its funding. In 1996, Cardinal's support dropped from $172,000 to $157,000.
Much of that is because the government's share is decreasing.
"Before it was very advantageous for us to do that, but we can't say it's very beneficial now," said Jane Green, executive director of Cardinal Center. "That's the most I can say right now. We're evaluating it year to year."
Although clients may not need transportation to Cardinal Center, their need for transportation will continue to exist, Green said.
Sherrin expects to learn more of Cardinal's impact next spring when KABS assembles its 1998 budget.
KABS's long-term existence could be threatened if Cardinal Center no longer supports KABS financially, Sherrin said.
"I don't think we're in any imminent situation of closing down, but it's obviously something we want to address because we are looking at the possibility of reducing services next year," he said.
"It's an issue the community needs to talk about. It needs to consciously make decisions about what it wants," Sherrin said.
KABS increased its fare about a year ago and eliminated fixed routes in exchange for more demand-based service to save money. Other cost-cutting steps have also been taken, and instead of buying three new buses, as scheduled, KABS chose to overhaul three existing buses, Sherrin said.
In coming months, Sherrin said he wants to discuss with representatives of the city of Warsaw the possibility of some city support for KABS. Those talks may also extend to the county, which provides some funding for Cardinal, but none outright for KABS. [[In-content Ad]]