In addition, he says the mass transit portion allots most of the funds to about a dozen cities, even though motorists in all states contribute to the transit fund through gasoline taxes.

The Senate deflected a move by Senator Richard C. Shelby, Republican of Alabama, to cut public transit funds for New York and California by $278 million.

New legislation that would allow Orange County to divert transit funds is being prepared for submission to the Legislature when it recovenes on Aug. 21.

During and after the Mayor's news conference, Mr. Michael said the transit fund involved bonds of the Staten Island Rapid Transit Operating Authority.

The city also lost ground in transit funds.

A river-to-river surface light-rail line on a landscaped, pedestrian-only street would be a much wiser use of scarce public transit funds.

This is a result of a contract with the university where it pays the transit utility $110,000 per semester, which is matched with federal transit funds.

By day's end, he had resolved the battle in typical D'Amato style, cutting a deal with opponents that would give their states $250 million in new transit funds.

Mr. D'Amato said New York would still gain about $480 million a year in new highway and transit funds under the bill.

They were supposed to run at three-minute intervals, but they never did; probably some high official was skimming from the transit fund, leaving less money for train procurement and repair.