By Patrick Crowley
The Cincinnati Enquirer

FLORENCE - The operator of Northern Kentucky's public transportation system is seeking a change in state law that would provide more annual funding for bus service.

But the idea got a cool reception from Northern Kentucky's three fiscal courts Thursday night.

During a joint meeting of the fiscal courts of Boone, Kenton and Campbell counties, officials from the Transit Authority of Northern Kentucky, or TANK, said the change would earmark the full amount of money from a 1978 transportation tax increase approved by the region's voters.

Counties are now are using a portion of that tax money for other transportation costs, including maintaining road departments, TANK officials said.

Bob Boswell, a member of TANK's finance committee, said the 1 percent payroll tax was approved with the idea that the money would be spent on bus service.

"The people voted to have up to a 1 percent transit tax," Boswell said. "Because when the (tax) was passed, all the promotion around it was about TANK."

TANK needs the funding to plan and pay for the region's long-term transportation needs, said TANK General Manager Mark Donaghy.

But county officials such as Kenton County Commissioner Barb Black questioned if TANK has done enough to operate as efficiently as possible.

"I have some grave concerns about some of the services being offered," she said.

Other county officials, including Campbell County Commissioner Bill Verst, also said TANK should take a harder look at some of the services it provides and what it charges. Several officials also asked why ridership has dropped in recent years while costs continue to go up.

TANK has reviewed operations and made an 8 percent cut in routes over the last year because of increased costs and diminishing ridership, Donaghy said.

"Almost every route was touched, and three routes were eliminated," he said.

TANK wants the county officials to lobby for a change in state law so that the money originally set out in the 1978 tax is dedicated to bus service, which was mentioned in the original ballot language when the tax was passed.

"What we are trying to do is clarify the intent of that ballot issue," Donaghy said. "We think that can be done ... through legislation."

Asked how he felt county officials responded to TANK's request, Donaghy said, "I couldn't say encouraging, but not necessarily unexpected.

"What we wanted at this point was to make our case to all three fiscal courts," he said.

Nearly 72 percent of TANK's operating revenue comes from local tax dollars, Donaghy said.

Voters in Campbell and Kenton counties passed the tax. The counties collect the tax and then forward money to TANK. Boone County does not levy the tax because at the time it was passed in the late 1970s only counties with populations of more than 30,000 could collect the tax. Back then, Boone County - which now has a population of nearly 90,000 - had less than 30,000 people.

However, because TANK serves Boone County, the fiscal court provides an annual tax subsidy to the transit authority.

Last year, TANK requested $13.9 million from the counties, an increase of 24 percent over the previous year, but received $12.1 million.

Donaghy said had TANK sought the full 1 percent it believes it is entitled to, it would have received $20 million from the counties.

Kenton County sends less than half of the 1 percent to TANK, he said.

But county officials said the money collected by the transit tax is being spent on other necessary transportation needs.

"This year those funds are being used only for TANK and the bond payments on the county garage, which serves as a transit center and a (bus) park-and-ride" that TANK did not help pay for, said Kenton County Deputy Judge-executive Scott Kimmich.

Black said TANK should study services such as the Southbank shuttle, which takes riders among Covington, Newport and Cincinnati as a way to increase attendance at attractions in the region's river cities.

Black questioned if the shuttle, which cost riders 50 cents a trip, is a service TANK can afford at current fare and ridership levels.

Donaghy said overall ridership increased steadily from 1995 to 2000, peaking at 4.3 million passengers in 2000. But as the economy slowed, so did TANK's business, and the number of passengers dropped to 4.2 million in 2001 and 3.9 million last year.

At the same time, the costs of fuel and insurance increased while buses had to be replaced over the last three years, he said.

Donaghy said he believes ridership will increase over the next 10 to 20 years as people travel to jobs coming into the region.

E-mail pcrowley@enquirer.com