By Bob Weaver
Calhoun-based Little Kanawha Bus, which now operates as a regional transit authority, was to have received $170,000 from Community Resources, Inc. of Parkersburg for the delivery of special services related to transporting passengers to medical care.
LK Bus was under CRI management, but has since been approved by the state as an independent transit operation.
The bus company never received the $170,000 grant for special needs, although they provided the service to the community.
According to Susan O'Connell, with the state's Division of Public Transit, former CRI director Melanie Pagilaro apparently used the $170,000 grant for other expenses within the troubled poverty agency.
"The money was not spent for the purpose it was generated," O'Connell told the Herald.
As CRIs money problems continued to mount, causing a downsizing of the poverty agencies services, a state audit revealed a number of critical management problems overseen by Pagilaro.
Sources indicated the agency had about a $500,000 debt, although new Executive Director Steve Ellis, when asked about the debt, told Calhoun commissioners last May it was about $100,000.
Ellis said his goal as the new administrator was "making positive things happen," with board members supporting a turn-around.
CRI and Ellis have been seeking to have the Division of Public Transit forgive the $170,000 due LK Bus, since the agency is strapped for cash and is currently attempting to restructure.
O'Connell told the Herald her agency had already forgiven CRI $85,000 of the grant and was looking at forgiving the other $85,000.
The last $85,000 is "still in discussion."
It appears Little Kanawha Bus will not receive the grant money due them, even though they delivered the service.
Darlene Harris, who manages the LK Bus system, said the company is doing well and providing a much needed service to the three-county region.
"With the economy faltering, public transit in rural areas is a much needed service," Harris said.
The LK Bus service, which serves Calhoun, Roane and Jackson has offices at Arnoldsburg.
For more info about LK Bus Service see littlekanawhabus.com
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