Daily News from New York, New York • 91

DAILY NEWS, WEDNESDAY, DECEMBER 15. 1978 A White House) Christmas A7 IW i IB Hy NEAL HIRSCHFELI) and MICHAEL PATTERSON The Transit Authority yesterday announced sweeping cuts in, subway and bus services starting Jan. 1 in an effort to save $30 million over the next 18 months to satisfy the city's I lemand that it achieve a balanced budget. The cutbacks, the most severe since the start of the fiscal crisis, include the elimination of some train lines, schedule reductions tfcti others, longer waiting times between non-rush hour buses and the closing of token booths. iuMHUt iH First Lady Betty Ford gives Big Bird a big hug as Susan Ford and Santa Claus enjoy scene at White House Christmas party given by Mrs.

Ford for children of members of capital diplomatic corps. Big Bird is a star of the public television show, "Sesame Street." icts TA's budgetary woes have resulted from "managerial incompetence." "State law requires that the city and the covered agencies balance their budgets, not the control board," snapped Berger. A City Hall spokesman said Mayor Beame would not have any immediate comment on the Transit Authority budget plan. The move to trim the $30 million will not affect the payment of over $3.7 million in cost-of-living raises that are scheduled to be paid to 45,000 transit workers on Jan. 1., according to an authority spokesman.

Under the control board's regulations, the cost-of-living adjustments cannot be funded through service cuts but must be paid for on a dollar-for-dollar basis through increased productivity. While stressing that the TA must prove that the productivity is real, Berger earlier this month told reporters that the control board "has no desire to withhold anything anyone has earned," adding that "the basic information is that the productivity savings have been made." Bridge Income Figured The new TA budget involves a shuffle of $47 million in 1977, $21 million of which is to take the place of $20 million withheld by the city and the Board of Education for senior citizens' and school children's special fare program, an authority spokesman said. Another $26 million, according to the authority, is to be guaranteed by the Metropolitan Transportation Authority from investment income eanieii by the Triborough Bridge and Tunnel Authority. In 1978. the TA spending plan relies on a shuffle of $37 million, $31 million of which is to be guaranteed by the city and state and $6 million by the MTA from Triborough investment income.

Although the bulk of the service cuts will be achieved without the firing of permanent TA employes, 181 former city and Housing Authority cops who were hired as change booth clerks after being laid off last year will be laid off again Dec. 23. The cuts, contained In the TA's budget for 1977-87, follow rejection by the city and the state-dominated Emergency Financial Control Board of the Authority's earlier spending plan. That proposal included $67 million of so-called "Beame shuffle" borrowing to permit the temporary use for operating purposes of federal Capital grants. Two Shuttles Ruled Out The principal effect of the service reductions on the subways will include the discontinuation of two shuttles, the IRT Bowling Green-South Ferry in Manhattan and the Franklin Ave.

BMT shuttle in Brooklyn, and the elimination of IND AA service in Manhattan. In addition, the cutbacks call for the trimming of three late-night subway services and the shortening of train lengths in the non-rush hours. Waiting time for buses In the non-rush hours, which have already been cut in some cases, will be lengthened from four to 20 minutes, the TA spokesman said. Cut Cars From Trains On the subways, where the authority had operated 10-car trains during the off-peak hours, trains will be cut to four, six or eight cars in order to save electricity and maintainence costs. The service cuts, according to the authority, were "mandated" in part by the Emergency Financial Control Board which has demanded that a $3-million shortfall be made up.

Stephen Berger, executive director of the board, quickly labeled that contention as "ridiculous" and said the $393flfl late increase By DONALD FLYNN The state Public Service Commission yesterday rejected the New York Telephone request for a $393 million rate increase on the ground that the utility had not provided enough financial information to support its case In what was termed a "very unusual" action, the commission tossed the telephone company's foot-thick stack of testimony back and said it was riddled with "substantial and fundamental deficiencies." promptly "deficien- The phone company denied that there were anv Still Take the A Train saia tnat tne pnone company had tailed to meet the burden of proof imposed by the Public Service Law and the commission's rules of procedures." The commission stated that New York Telephone had failed to provide, as had been requested, cost studies for terminal equipment, in-state long-distance calls, and private leased lines. The company also failed to provide sufficient data on future costs and finances, the commission said. The hike sought by New York Telephone would have increased pay-phone calls from 10c to 20 cents and raised residential installation charges from $18 to $40. Special Timed Rate The new rate schedule would also have offered New York City and Buffalo residents a special timed rate on one-unit message calls of 8.2 cents for a five-minute call with each additional 10 minutes costing another 8.2 cents. The monthly service under the timed-rate system would have cost $1 less than that of regular residential customers who pay 8.2 cents for a one-messsge unit call regardless of its duration.

Mayor Beame had a different opinion. "I am pleased that the Public Service Commission has acted in the best interest of the consumers of this state -by its actions." he said. Rosemary S. Pooler, executive director of the state's Consumer Protection Board, also hailed the commission's action, but added: "The phone company will be back with another demand for more money. We will be here and ready to fight the next rate increase." cies in our rate application." "A Model Case" Instead, it declared, "It is a model case, thoroughly detailed with complete backup material.

"In effect, this action denies the company's right to due process under state law," the statement from Executive Vice President Daniel Emerson said. "Rulings like this may seem appealing" to the public, but ultimately only injure the company, its service and the consumer," he added. "We will take whatever steps are necessary." The company filed the rate-hike request Nov. 16, only 13 months after it had been granted a $298 million increase and only three months after it had received a supplemental $46.9 million boost. No Further Consideration The Public Service Commission notified New York Telephone that it would not give any further consideration to the November filing in its present form.

The commission then canceled a public hearing scheduled for Monday night at 2 World Trade Center, and also canceled scheduled hearings at seven other locations around the state. A spokesman for the commission GG trains will terminate at Queens Plaze instead of 71st St. Continental Forest Hills. The Brooklyn terminal of the GG line will continue to be Smith-Ninth SI. Local service between Queens Plaza and 71st St.

-Continental Ave. will be provided by Ftrains during the late night hours. Between 1 and 5 a.m., and Trains will only run between Coney Island and 36th St. Brooklyn instead of to an dfrom 57th Manhattan. Passengers may transfer at 36th St.

to RR trains to get to 57th Manhattan. Riders on RR trains may change at DeKalb Ave. in Brooklyn or 34th St. in Manhattan for Sixth Ave. destinations.

The station at 57th St. and Sixth served by the line, will close between 1 and 3 a.m. Under the Transit Authority's $30 million budget cutback, the following subway service changes will take place: The IR TBowling Green-South Ferry shuttle in Manhattan, the Franklin Ave. shuttle on the BMT in Brooklyn and AA service on the IND in Manhattan will be discontinued. In place of AA service, the A line will operate as a ocal during nonrush hours instead of an express between 168th St.

Broadway and Chambers St. The A will continue as an express during rush hours with Band CC trains continuing to provide local service during those hours. Cutbakcs in late-night services will affect the GG, and trains. Between 10 p.m. and 5 a.m.,.