LOUISVILLE, Ky. (WDRB) -- Transit Authority of River City is facing service reductions next year as it deals with a looming fiscal cliff and a need for drastic action.

TARC is facing a financial crisis as it stands to lose 20% of its annual revenue with funding from the American Rescue Plan about to end. 

The agency's board of directors passed its 2025 budget on Monday, which calls for service reductions come January 2025.

"This is not a step that the board takes lightly — but it is necessary," TARC Board Chairman Ted Smith said in a news release Monday. "TARC, like many transit agencies across our country, faces significant financial challenges. By taking this step now, we can buy the necessary time to find the resources we need to support robust bus service for the tens of thousands of us who rely on public transit in Louisville."

That will mean fewer scheduled buses every hour and less frequent service for most routes. The changes will be similar to cuts implemented during the height of the COVID-19 pandemic.

However, four of the busiest routes will not be impacted. Those include the #4 4th Street, #10 Dixie Rapid, #23 Broadway and #28 Preston Highway. Those routes will maintain the usual weekday frequency of every 15 minutes.

TARC blames its financial problems on minimal state support, an end to COVID-19 funding, and not raising the city's occupational tax rate.

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