Oregon Public Broadcasting

Bend announced last month that the real estate slowdown had done a number on the city. A drop in housing fees and permits has put Bend about $20 million over budget.

Local governments must balance their books. So, before the next financial year begins on July first, city officials must approve major cutbacks in services and staff.

Central Oregon correspondent Ethan Lindsey reports now from Bend on the beginnings of the budget cuts - and how it looks like the city's new bus system could take one of the hardest hits.

You could blame it on the housing bubble or you could blame it on growing pains.

Remember, Bend's population has tripled in little more than a decade. The city built new schools, parks, and libraries

And in 2006, the city launched its new bus system, Bend Area Transit, or as locals call it, the BAT.

Waiting at the city's transit hub, east of downtown, it's clear this is a bus system in its infancy.

If there weren't six buses parked here, you might guess this is just a supermarket parking lot. An empty one.

Charles Feist says he rides the bus every day. He says to judge it by one key measure, the BAT is a success.

Charles Feist: “I think it's an excellent system. I have recently purchased an atomic watch and we are in sync."

Ethan Lindsey: "It runs on time?"

Charles Feist: “Yes, definitely.”

But Feist says the bus system is still growing.

The immaturity also extends to funding. Half of the bus system's budget comes from the city's general fund - the pot of money the city actually has the power to spend however it wants to.

Meaning, during tough times, that's the budget that gets cut.

So, when interim city manager Eric King told city employees about the budget deficit - the bus system was a natural place to look.

Eric King: “Our goal was a 17-percent cut to the transit system. We actually only reduced service by 7 percent. So we really looked at other cuts we could make, before we started getting into service cuts.”

Transit manager Heather Ornelas says that means the department basically zeroed out its marketing budget. And is spending way less than expected on benches and roofs for new bus stops.

But even with those trims, the city will consider pausing the bus system from about noon to 1 p-m every day to save money. During that hour, Bend will save on gas, and bus drivers will get an extra-long lunch hour.

Unpaid.

Riding the bus on Wednesday, drivers didn't hide the planned cuts from passengers.

City manager Eric King says lunch hour is one of the least-used times of the day.

Eric King: “We were trying to really minimize impact to ridership. If you lose ridership, you also lose some of your farebox revenue. It was somewhat strategic to pick those times, to minimize impact to the riders.”

In the short-term, the bus budget cuts are just proposals. The city council will consider them over the next few months, before deciding on the new-$20 million-smaller city budget before July.

Dozens of layoffs in other city departments are also expected.

In the long-term, voters - and riders -- may get a say in the bus system come November. A ballot measure to create a regional transit network, separate from the city, is in the works.

That's how most major bus systems operate.

Riders like Charles Feist say they'll vote for it.

Charles Feist: “Bend deserves and needs an expanding bus system. And I hope that voters will pass the iniative in November to expand the time and service of the BAT system.”

If voters approve a property tax to fund the district, the bus system could start operating during lunch hour again - and would have a bigger budget to meet rider's demands.