PROVIDENCE — Despite a budget crisis, Governor Carcieri has found $2.2 million to partially cover a budget deficit that could force massive service cuts in the state’s bus system, officials said yesterday.

“He got us a cash infusion that pushes Armageddon back,” said John Rupp, the chairman of the board at the Rhode Island Public Transit Authority. However, he said, “We’ve still got a deep hole.”

He said that the bus system could still suffer major service cuts, and that he’ll reassess the situation in March. Even with the extra revenue, he said, without service cuts, the bus system could run out of cash and face a shutdown before the end of the fiscal year June 30.

“It’s a short-term measure,” said Amy Kempe, Carcieri’s press secretary. But she said the administration recognizes “the need to find a long-term solution” to RIPTA’s financial problems. That’s something that, for years, transit supporters have been alternately demanding and pleading.

Carcieri found the $2.2 million by shifting money from a fund used to clean up spills from underground fuel storage tanks. That, together with lower diesel fuel costs, could reduce RIPTA’s deficit to a range of $3.2 million to $3.8 million, Rupp estimated. The result is to temporarily help RIPTA out without raising state taxes or fees.

Rupp appreciates the governor’s financing plan all the more because of the timing.

“He found money for us in a budget that was taking money away from everybody else,” Rupp said. To close a potential $357.4-million state budget deficit this year, Carcieri has proposed drastic and unpopular measures, including big cuts in aid to municipalities and schools and a rollback of pension benefits for state employees.

“I would not want to be the governor at the moment,” Rupp said.

Carcieri has insisted throughout RIPTA’s years-long financial struggles that he supports mass transit. But lack of action on the governor’s part as RIPTA’s finances crumbled during the last year brought increasingly sharp criticism from environmental, planning and other groups who want more transit, or at least protecting the existing system from dismemberment.

Yesterday, one of those critics, the Sierra Club’s Chris Wilhite, called the governor’s move “quite a turnaround.”

“Clearly,” Wilhite said, “he understands that public transit is a thing we need to keep going.”

Last fall, as the latest in a long series of financial troubles grew worse, RIPTA estimated its budget deficit for this fiscal year at $10 million. It said it might be forced to eliminate 20 percent of its service and a similar proportion of its work force of about 820.

That would include 77 of its 380 bus drivers along with dozens of van operators and maintenance workers.

The cutback would eliminate more than 4 million rides and 800 hours of service per week and cut off service entirely to four towns, authority officials said.

At the time, RIPTA said its finances were being drained by the sharply higher price of diesel fuel, its largest expense after labor. Since then, prices have fallen. It budgeted $3.60 per gallon, and has recently been paying $2.97.

With the added $2.2 million, and assuming fuel costs remain low, Rupp said, this year’s deficit could shrink to between $3.2 million to $3.8 million — and it still wouldn’t get it to the end of the fiscal year.

Mark Therrien, RIPTA’s deputy general manager, said last night that the staff is working on cost-saving measures he expects to present to the board shortly.

Like any company or other organization with money trouble, RIPTA’s problem has two aspects.

If its spending exceeds its revenue, it has a budget deficit that must be paid off sooner or later, but wouldn’t necessarily put it out of business. RIPTA ran a deficit last fiscal year and added it as an expense to this year’s budget. Bus service continued.

But if an organization spends money faster than its revenue comes in to the point that it has no money left in the bank, it has a cash flow crisis — it can’t pay its bills. Barring an influx of money, it has to shut down.

RIPTA has done a “cash burn” analysis of its expected revenue and expenditures to see when it would actually run out of money. Rupp said that even with the extra $2.2 million, that could still happen as early as May.

Rupp has said the board won’t let that happen, and would instead cut spending — and service — to keep the authority operating.

Rupp also rejected shifting the deficit over to the next fiscal year again, assuming that’s possible given the authority’s cash flow problem. That tactic only added to this year’s deficit.

“We are not going to carry a $3-million or $4-million debt into next year,” Rupp said. He said he expects RIPTA’s financial situation to be worse next year, not better.

Because the extra money needs legislative approval, Carcieri’s proposal puts the transit issue into the General Assembly’s court. The first hurdle there will be the House Finance Committee.

Through a spokesman, Finance Committee Chairman Steven M. Costantino said that the committee staff is analyzing the budget and that “It’s too premature to offer an opinion on the RIPTA proposal.”

“If we don’t get the money, we’re back to square one,” Rupp said.

RIPTA to revise routes this weekend

Starting Saturday, the Rhode Island Public Transit Authority will change about 47 routes as part of its annual, winter service adjustments to respond to seasonal changes, passenger use and other issues.

The changes include rescheduled trip times on many routes, some service discontinuations and new flexible scheduling in the Pascoag-Slatersville area.

Riders are encouraged to pick up a leaflet titled “Winter Service Changes Effective January 17” that is available at Kennedy Plaza. There are also new paper schedules for many routes. Riders can also visit www.ripta.com, or call (401) 781-9400 to check the changes.

Karen Mensel, a RIPTA spokeswoman, said the schedules are routinely changed each winter, June and late August to reflect changes to passenger routes.

One change will eliminate the need to transfer on bus route 17 (Dyer/Pocasset) which will now continue to Route 57 (Smith Street). In another change, Route 31 (Cranston Street) will continue to Route 56 (Chalkstone Avenue).

Other changes include additional trips on Route 64 (Newport/URI) to URI’s Bay Campus, weekday service to Governor Apartments and Federal Hill House on the Green Line Trolley (Route 92), and new service on Route 14 (West Bay) into the Quonset Gateway Development.

blandis@projo.com