MEDINA – Slow moving negotiations between Brunswick and the county to merge the Brunswick Transit Alternative with Medina County Public Transit have hit another snag.

A year of negotiations seen to have finally reassured city council members in Brunswick the merger would not seriously harm city bus riders but now funding doubts have given pause to Medina County Commissioners that the merger is viable.

MCPT already manages BTA on behalf of Brunswick and would take complete responsibility for managing the system if the merger goes through. Along with that responsibility would come about $280,000 Brunswick receives annually from Cleveland Regional Transit Authority to operate the system. However, that $280,000 of federal money to operate the Brunswick bus service may be in jeopardy. Cleveland RTA is facing a budget crisis and may try to divert the federal grant money it now passes along to Brunswick.

County Administrator Scott Miller said county officials have been trying to get a meeting with RTA representatives to clarify the BTA funding situation but RTA has delayed that meeting while it awaits clarification from the Federal Transit Authority about its own funding options.

“It’s unlikely the county would approve the transit merger if that RTA funding for BTA is no longer available,” Miller said.

RTA’s budget problems stem partly from an $18 million loss of sales tax revenue next year. That loss is the result of a federal ruling that Ohio may no longer charge sales tax on Medicaid managed care organizations. It’s expected to reduce sales tax revenue in Ohio by $500 million. Sales taxes are the main funding source for RTA.

The loss of sales tax revenue compounds funding problems for RTA which has also seen a reduction in state support. State contributions to public transit has dropped from $43 million in 2002 to $7.3 million last year making Ohio spending per capita on transit among the lowest in the nation. The loss of sales tax on Medicaid services is also going to hit Medina County hard. Miller estimates the elimination of that tax will reduce the county’s sales tax revenue by $1 million next year.

Miller also said MCPT is already operating at a deficit. He said expenses for operating the county bus system will be about $78,000 more than budgeted this year. He estimated that annual budget deficit would rise to $269,000 next year if the county took over BTA ownership and did not get the grant money from RTA.