Bus service in some communities may be changed or eliminated as LANTA released its draft budget for the next fiscal year.

Officials say that cuts in service may take place along various routes in the Lehigh Valley area if additional funding isn’t secured to close a multimillion dollar deficit.

“Service reductions are the last thing we want to do,” said Owen O’Neil, executive director of LANTA when the announcement was made this week. “At LANTA, we strive to expand people’s mobility options and their access to opportunity.”

The draft budget includes assumptions that would include about a 20 percent reduction in services, the largest service cut instituted by the transit authority in decades; as well as a fare increase of 25 percent on the fixed route bus system and 25 percent or more on the Shared Ride for Seniors paratransit service in the Lehigh Valley. These actions are being proposed to address an annual recurring unfunded deficit of approximately $8 million on the bus system and an additional $3 million for the Shared Ride for Seniors services starting in the coming fiscal year.

One route change affecting the Times News coverage area that had been highlighted in the announcement was the elimination of bus service in the Slate Belt and Walnutport/Slatington areas.

Carbon Transit, which is operated through LANTA, was not directly mentioned in the cuts or changes to service, however in the 104-page proposed budget, it states that there is an operating deficit for the Senior Shared Ride program and fare increases are not being ruled out. This includes increasing the ADA fare from $3 to $5 effective Jan. 1.

“The FY 2026 budget reflects a $264,898 unfunded deficit applicable to the PennDOT Lottery sponsored Senior Shared Ride Program. For budgeting purposes, the deficit will remain unfunded for the fiscal year,” the proposed budget reports. “In addition to Jan. 1, 2026 fare increases, staff will be pursuing additional actions to remediate the deficit in FY 2026 and future fiscal years including the use of alternative grant sources, changes to program parameters and service delivery.”

In addition, it also proposes a reduction of the zone fare structure; keeping the same rate for in-county purchased transportation rates and transportation fixed cost rates; and an 8.2% increase for Medical Assistance out-of-county rates.

The transit system provides approximately 27,897 trips annually in Carbon County, utilized by seniors, disabled residents and those needing transportation to medical appointments.

While these are only proposed changes based on the figures currently provided to LANTA, the final budget will be based on the state’s allocation that it determines.

In 2024, Gov. Josh Shapiro proposed an increase in the allocation of statewide sales tax revenue dedicated to transit operating assistance from 4.4% of revenue to 6.15%.

At that time, the Pennsylvania House of Representatives passed legislation that included the transit funding increase but the adjustment did not make it into the final budget. Shapiro again included his proposal in his budget address this year.

If it is approved by the state, the allocation would provide an annual funding increase of over $7 million to LANTA for services it provides to Carbon and the Lehigh Valley, greatly reducing the need for some route eliminations and fare increases.

“This funding increase would address the immediate funding gap on the fixed route bus system and could allow LANTA to avoid crippling service cuts,” the organization stated in a release. “However, without a fix to the funding level and funding mechanism of the Shared Ride for Seniors program, LANTA would still require some adjustments to service levels to fixed route bus and Shared Ride for Seniors paratransit service.”

Specific plans have not yet been finalized, but LANTA stated that it would plan for these service cuts to be instituted in January 2026 or earlier. If it is necessary to implement service cuts, LANTA would hold public meetings later in the year to present the specific service reduction plans as well as the plan for fare increases.