SOUTH BEND -- Faced with a double-whammy of lower tax revenue and higher costs for fuel and health insurance, Transpo officials approved a plan Monday to pare back some of the system's bus routes.

John Leszczynski, board chairman for the South Bend Public Transportation Corp., said the plan will enable Transpo to remove nine buses from its system and save about $1.2 million annually.

The cuts are necessary, officials said, as public funding for the transit agency has dropped from about $8.5 million in 2008 to $7.2 million last year.

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