The Government has agreed to cover the deficit through 1990.

It was only later, several parents and teachers said, that they were told any plan had to include $125,000 to cover the deficit.

The tax was approved and led to a 25% increase in revenue the following year, but still not enough to cover the deficit.

To cover the deficit, the government has to borrow money, which is added on to the national debt.

Why does this board continue to spend without covering the deficit?

Unless new sources of money could be found, the authority said, the fare would have to rise to $1.40 to cover the deficit.

The funds, he said, are enough to cover operating deficits and provide a small cushion.

The latter was also responsible for covering the operating deficit.

"This is the first time in 10 years," he said, "that we have not been able to raise fares enough to cover the deficit."

Rising sales and property taxes have covered the projected deficit, officials say.