Plagued by a deficit resulting in fare increases and service cuts over the past year, the Centre Area Transportation Authority's 1991-92 preliminary budget indicates the agency may have to further cut services and raise fares.

The proposed $2.87 million 1991-92 CATA budget, representing a 2.5 percent spending increase over this year's budget, includes a fare increase and a reduction in service, said Kevin Abbey, the authority's general manager.

The budget proposal calls for the retention of the emergency fare of 85 cents, which was instituted in January because of higher gas prices during the Persian Gulf crisis, Abbey said. Fares were to return to 75 cents in May, he added.

Route service would also be reduced in July under the spending plan.

The H Route servicing Toftrees and Heritage Oaks would stop running at 7 p.m., Monday through Friday. Saturday H Route trips would be dropped completely. Also, the WP will no longer run to Hills Plaza, 2121 S. Atherton St., or to K mart Plaza, 100 Valley Vista Drive, on Saturdays.

The ES Route would be expanded to pick up some dropped service, but there will be less service next year, Abbey said.

Several riders are unhappy with the proposal.

"I don't think it's fair for the people who depend on the bus," said Becky Kline (junior-French business).

"I think it's wrong," Scott Hirsch (senior-aerospace engineering) said while waiting for a bus at the intersection of College Avenue and South Allen Street. "I ended up paying $15 extra for a bus pass after the original increase."

In order to ease their current spending problem, CATA will also reduce bus service to Bellefonte.

Three of 10 daily bus trips on the X Route to Bellefonte will be suspended because the Bellefonte Borough Council earlier this week refused to grant an additional $3,000 in funding requested by the authority, a CATA official said.

CATA asked participating muncipalities in January to help reduce the deficit and five of them -- State College Borough and Ferguson, Patton, College and Harris townships -- gave the authority a total of $48,500 to stave off service cuts.

Bellefonte has already given the authority $13,500 in funding.

Bellefonte councilman Jack Houser said council members did not grant the request because they believed there were not enough riders on the affected trips to justify the additional cost.

CATA may make further route cuts, increase fares or get more money from municipal governments to recover the loss, CATA Marketing Specialist Stefan Fabian-Marks said.

President Bush announced earlier this year that the federal government will not increase its support of public transit systems for several years, Fabian-Marks said.

"We can expect that is going to be less (federal and state) funding or no funding for public transportation," Fabian-Marks said.