RAPID transit is nearly dead at city hall, leaving about $34 million in federal and provincial funding in limbo.

Mayor Sam Katz appears to be laying the political groundwork needed to delay the rapid-transit corridor in order to spend more money next year on roads and community clubs.

And he seems to have captured the support of many, if not most councillors, who could vot this fall to postpone the construction of the southwest transit corridor connecting the downtown to the University of Manitoba.

Ottawa and the province have pledged to pay two-thirds of the corridor's cost but Katz said yesterday that money may be needed elsewhere. It's possible that all or some of that $34 million could be lost to the city if it changes plans.

Treasury Board president Reg Alcock and Premier Gary Doer have said they are willing to entertain any new proposals from Katz and city council.

A spokesperson for Doer said yesterday a new infrastructure deal could include roads and community clubs.

Katz said he is not yet pushing to redirect the transit cash, but pointed out the myriad demands on city dollars. That includes refurbishing city recreation centres and community clubs, millions in backlogged road work and dealing with a looming operating deficit.

"I love the idea of rapid transit, but we have to be realistic," said Katz. "We have to look at the big picture."

He also promised to make use of the $34 million pledged by Ottawa and the province if it's not used for rapid transit.

"That money won't be lost," said Katz.

Coun. Jenny Gerbasi, a rapid-transit booster, said it's taken 30 years for politicians to finally coalesce around rapid transit. Postponing it again will likely mean another decades-long wait. "Delayiig something around here is just a quiet way to kill it," said Gerbasi.

The city's contribution to rapid transit is about $17 million.

Gerbasi said the city would get a far bigger "bang for the buck" with a $17 million investment in rapid transit than it would spending that cash on roads.

That's partly because the tripartite infrastructure deal also included cash to spruce up the Graham Avenue transit mall and Main Street with new stops and bus information. And it also funds a GPS communications system for the whole transit fleet that allows each bus to be tracked as it follows its route. Electronic signs will show the bus's next stop, transfer information and other scheduling tips.

The $17 million, spread over four years, is about $4 million a year, which would have an almost unnoticeale effect on potholes, Gerbasi said.

"Is that going to have the impact on the city that the start of an entire rapid-transit system would?" she asked. "I don't want to be in a time warp with this. We are so far behind other cities it's embarrassing."

NDP MP Pat Martin said it's unlikely the federal government will redirect the money to roads because Ottawa general favours "green" projects.

"It's kind of a use-it-or-lose-it proposition," said Martin. "It's a miracle when all three levels of government work together and it would be a shame to jeopardize that because the city chickened out."

But Coun. Mark Lubosch said council should not be faulted for wanting time to study the project, especially since the city will be stuck with the long-term maintenance costs.

"You can get yourself into a lot of hot water by succumbing to these ultimatums," said Lubosch, who said he'd prefer to delay rapid transit until more revenue from a new deal materializes.

Coun. Harvey Smith, along with several city hall insiders, says debate over rapid transit has been tainted by political jockeying at city hall. This month, Katz is expected to shuffle his powerful executive policy committee, the cabal of six councillors who set council's agenda.

A spot on EPC comes with a $12,800 bonus and the chairmanship of a council subcommittee.

There are at least seven councillors who would likely support redirecting rapid-transit cash to roads or community clubs including Jae Eadie (St. James), Bill Clement (Charleswood), Lubosch (North Kildonan), Harry Lazarenko (Mynarski), Peter DeSmedt (St. Charles), Franco Magnifico (St. Boniface) and Mike Pagtakhan (Point Douglas).

There are only three who want construction of the rapid-transit line to begin this spring — Donald Benham (River Heights), Gerbasi (Fort Rouge) and Lillian Thomas (Elmwood). All three were allies of former mayor Glen Murray, a champion of rapid transit.

Coun. Gord Steves is on the fence, saying he supports rapid transi, but is left with many unanswered questions. He wonders how the city will afford its share of the cost and what would happen to the federal and provincial contributions if the city were to cancel the project.

Smith (Daniel McIntyre) said he is leaning toward supporting rapid transit, but wants to see the pile of studies the city has prepared outlining the benefits and costs of the southwest corridor.

"I'm open," he said. "I do want to see the money go to something that improves the quality of life."

Coun. Russ Wyatt (Transcona) and John Angus (St. Norbert) were out of town. Mike O'Shaughnessy (Old Kildonan) did not return calls.