The Atlanta Regional Commission on Wednesday voted 27 to three to pull MARTA back from the financial brink with $25 million in stimulus funds.

MARTA was preparing for drastic cuts - possibly shutting down all service one day a week - until ARC announced the proposal in April. A majority of MARTA’s income comes from a sales tax levied in Fulton and DeKalb counties, and those revenues have shrunk along with the economy.

MARTA CEO Beverly Scott praised the ARC. “This was leadership,” she said. She added that less serious cuts are still under way, including pullbacks in service.

Under the plan, the ARC will give MARTA $25 million of federal stimulus funds that were intended for transportation projects. Although stimulus funds are supposed to be used for shovel-ready projects, Scott said federal officials told her the deal will pass muster if the stimulus money is put toward preventive maintenance.

In return, MARTA plans to use about $25 million of its capital reserves to pay for transportation projects that complement MARTA service, like upgrading pedestrian areas.

The swap helps MARTA because under state law it is not allowed to use capital reserves to fill its operating shortfalls. Legislation that would have lifted that restriction was left hanging this year.

Sandy Springs Mayor Eva Galambos voted against the deal, saying it should be postponed until MARTA lists exactly which projects it will build to repay the region. She added that letting the crisis unfold could force the state to recognize the need for regional transit. “Sometimes it takes a crisis to bring about a solution,” she said.

ARC Chairman Sam Olens said that depriving hundreds of thousands of metro Atlantans of their rides to school and work one day a week in a shaky economy would be unwise.

Gov. Sonny Perdue has the state’s final say on stimulus spending, and has spoken in favor of the deal.

Atlanta Mayor Shirley Franklin cautioned that the one-time stimulus fix “doesn’t solve the long-term problem.” MARTA may be in a similar position next year, Scott said.