CLEMSON — Clemson Area Transit (CAT), which has long taken pride in “carrying more people more places,” faces a significant funding cut from Clemson University that would result in a decrease in student transportation routes.

“This will be the first time in 13 years that we will be cutting services,” Clemson City Administrator Rick Cotton informed city council members Monday night.

Under last year’s renewal of the city and university’s joint CAT operating agreement, Cotton said the university contributed $1.6 million for operations and lease purchasing for buses, while the city’s portion of $1,050,000 was derived through state and federal funds and a $160,000 lease purchase for buses. However, Cotton added that the university’s decision to reduce its allotment, along with rising fuel costs, have provided a crimp in the 2009 fiscal year budget.

“We have zero buses under warranty, a $300,000 or less contribution by the university and a $400,000 increase in fuel costs,” Cotton said, adding, “As a result, we will be cutting routes.”

Although the two entities plan to meet later this week, Cotton said a reduction in student routes appears to be the only viable option. “There are no more university funds and no tax increase by the city, so the only choice is to cut services.”

While Cotton said the university has been subsidizing CAT — not only with the $1.1 million accrued from the transit fee but through parking fees — he added that they have now been directed to allot parking fee revenues toward parking maintenance and construction of a parking deck.

“They’re going to reduce their dependence on the parking fund to pay for transit service,” Cotton said.

George Smith, a Clemson University official who has been working with the city on the transit issue, said the university feels that transit service is only part of the solution when it comes to the problem of limited parking on campus.

“It’s not the silver bullet that’s going to solve the problem,” Smith said.

CAT Executive Director Al Babinicz said he realizes difficult decisions must be made.

“It’s not an easy decision to cut transit service at a time when gas prices are rising and ridership is increasing,” Babinicz said, adding, “Some of the routes are up more than 111 percent and the smallest was 36 percent in Seneca last February.”

Though state and federal grant allocations have increased each year, Cotton said they haven’t gone up enough to offset a potential $700,000 in lost revenue for ’09. While CAT uses diesel fuel based on the state contract price, the Clemson administrator said increased costs mean an additional $2 more per gallon, or $4.40, and $400,000 more annually.

Overall, CAT employs 80 full and part-time transit operators. While Cotton said no full-time operators would face layoffs, he said part-timers might not be used as often.

“There will be pain on both sides,” Cotton said, adding, “This is a very significant cut, and I want you to be aware of it.”

Clemson Mayor Larry Abernathy said CAT has been a valuable resource, both for the university and for the city, especially from an environmental prospective.

“There’s no doubt the CAT system has taken thousands and thousands of cars off the road,” Abernathy said, adding, “We have also built parking decks, so I have some real problems with that (proposed reduction by the university).”

Cotton said once he receives final financial numbers from the university later this week, he will present the agreement to council at their next regularly scheduled meeting Aug. 4. That meeting will take place at 7:30 p.m. at City Hall and is open to the public.