MARTA officials project a budget deficit of about $43 million for the coming year, and they plan to make job cuts to help cope, according to board chairman Michael Walls.

The MARTA board, which meets today, is expected to vote on its budget for the 2008-09 fiscal year at its June meeting.

Unlike the last time it faced a large deficit, earlier in this decade, MARTA does not plan to propose cutbacks in rail or bus service. Instead, Walls said MARTA officials will call for the deficit to be covered by the agency's cash reserves. Currently, MARTA has about $98 million in unrestricted reserves.

But the agency proposes a reduction of 180 staff positions, many of which are unfilled. Some workers already knew their jobs could end June 30, as they were hired to help passengers understand the new Breeze Card system when it was introduced.

MARTA General Manager Beverly Scott said she regrets the cuts amid an economic slowdown. "Notwithstanding [that] the people were standing there with contracts that said June 30, times are hard," she said.

No fare increase is being considered for the coming year, according to Scott.

The deficit largely can be attributed to a decrease in revenue from the 1-cent MARTA sales tax collected in the city of Atlanta and in Fulton and DeKalb counties, Scott said.

State law requires that MARTA use 50 percent of the sales tax on capital expenses and the other half on operating expenses —- a stipulation intended to ensure the system kept growing. MARTA had been able to spend 55 percent on operating expenses under temporary legislation, which is about to run out.

If MARTA had the flexibility to spend the 1-cent levy on either operations or capital, it would not have to use reserves to balance next year's budget, Walls said. Scott has said the state restriction on how the agency can spend its penny tax is unique among transit authorities in the country.

Walls and Scott plan to ask the General Assembly to introduce legislation in the upcoming session to remove the stipulation on the use of sales taxes.

MARTA has reduced capital improvements in recent years. Its greatest need has been to support operations, particularly as gas prices rise and people seek alternative transportation.