DAYTON - (Dayton Daily News) -- This year's service cuts and fare increases by the Greater Dayton Regional Transit Authority did not fully resolve budget troubles, and the bus system faces growing projected deficits.

The $57.25 million 2010 draft budget outlined on Tuesday, Nov. 17, during the RTA finance committee meeting shows a $665,031 operating deficit for 2010.

Without further cuts or increased revenue, the deficit jumps to $2.8 million in 2011 and to $3.5 million the following year.

Battered by declines in sales tax revenues, which make up 60 percent of operating funds, RTA trustees may consider forming a committee to look at a longer-term fix to the financial troubles.

"Our business model used to work," said Mary Stanforth, chief financial officer. "In the last few years that business model has completely changed. What is our new model? We have been trying to find our place there, trying to figure out how we are going to fund this operation."

The options are few, said RTA Executive Director Mark Donaghy. RTA needs to increase revenue or make "significant" cuts in service, he said.

Board member Franz Hoge said he is concerned that RTA is nearing, or at the point where it can no longer afford the local match for federally funded capital costs such as buses.

Hoge co-chairs a Montgomery County long-term financial planning task force made up of community, business and government leaders. He said RTA could benefit from some of the ideas that the committee formulated in a soon-to-be released report. Board member William Kramer suggested that RTA consider a similar panel.

Donaghy suggested that the 2010 deficit be resolved during the course of next year but Kramer, Hoge and member James Newby all argued that would just delay the inevitable cuts.