The Indianapolis Public Transportation Corp. (IndyGo) is recommending service adjustments to accommodate a dramatic shortfall in its 2010 property tax distribution. Property tax is IndyGo's primary source of local revenue, which accounts for about 30 percent of its total annual budget: $53 million.

In preparation for some expected reductions in revenue and unplanned expenses, IndyGo cut a half million dollars worth of service earlier this year. Fiscal analysis of this current shortfall indicates that it must cut $3.2 million in expenses in order to maintain a balanced budget for 2010.

The proposed service changes will also help IndyGo address its 2011 budget, which is likely to be affected with similar reductions in state and local revenue. As with 2010, the 2011 budget will rely on certain assumptions related to revenue and expenses. These assumptions include increases in fuel costs and employee benefits despite reduced revenue from local property tax and State PMTF (Public Mass Transportation Funds).

IndyGo will hold two public meetings on Thursday, with the proposed service changes possibly taking effect in mid-July.