SIDNEY -- A reduction in state funding is impacting Sidney's transportation program.

Transportation Director Kasey Kantor explained to the Sidney City Council Tuesday what that means.

"As previously when I came in a couple months ago, we were doing our two-year budget for our fiscal year for the State. When it came back with all the departments, the State was unable to fund everyone the money that they requested. Across the board every department in Transportation was cut down by 30 percent," Kantor said.

The City transportation department gets reimbursed at 75 percent (50 percent federal, 25 percent state) for operating expenses and 80 percent for non-operating expenses. Kantor said the City applies for funding bi-annually through the Nebraska Department of Roads; this year due to State budgeting issues, the City is doing an annual budget.

"So, this is just coming back saying 'this is our budget. We know where we're at, and this is us looking forward.' So, originally, for the fiscal year, I was just a little over $500,000 for my budget. With the 30 percent, I am about $336,000," he said.

Kantor said the State is optimistic of a turnaround.

"The State does not believe that this is going to be permanent. As we're going into a new fiscal year, money rolls over. It's just like I said, other transportation facilities ask for more money. That was given to us. So we're just kind of halting our budget until the fiscal year gets over and then they're going to see how much money we have left to roll back to everyone else. They call this more of a budget practice than our final budget for the year. I am very confident in this because I would always ask for more money for possible growth and ... we sat down with the State. We looked where we're at. We looked at what we need. The State really helped us cut where we needed to," he said.