THE city is about to lose milliions in federal and provincial funding for bike paths and new transit programs because it doesn't have the cash to live up to its end of the deal.

In a closed-door meeting of the mayor's cabinet last week, councillors heard that funding for the WinSmart program will likely shrink from $14.3 million to $7.7 million.

That means only 18 projects, not 26, will get funding. Gone would be improvements to downtown walkways, a better bus system to Selkirk and technological improvements to city buses that would have allowed riders to find out exactly where their connecting bus is in real time.

Central to the WinSmart project was a "green corridor" down Pembina Highway that was linked to the bus rapid transit corridor, which council last month voted to delay. A series of bike and walking paths was slated to be built along the corridor at a cost of about $1 million, but that project will also likely be shelved.

A spokesman for Mayor Sam Katz said the city is working to find the cash for the new, scaled-down projects and hopes to reach a new deal with the province and Ottawa soon.

"We want to make sure the money we're spending is going to the city's priorities," said Greg Burch. "And the other levels of government have indicated they have some flexibility on this."

Avid cyclist Julian Nedohin-Macek said he is resigned to the fact that the bike-path plan would suffer the same fate as rapid transit.

"It's sort of Winnipeg's way to coddle motorists," said Nedohin-Macek, also the Manitoba Cycling Association's vice-president for recreation and transportation.

Nedohin-Macek said he avoids Pembina Highway and uses side streets and river-valley bike paths that zig-zag badly but are still faster than driving. A dedicated bike path along Pembina's western side would attract more cyclists and make their commute shorter and safer.

Other environmental groups were also disappointed to hear that the bike path and other green initiatives had been stalled.

"That's a bit of a disappointment," said Serge Larochelle, program co-ordinator at Resource Conservation Manitoba. "It should be possible for the city to find innovative ways to make room for cyclists, with a little creativity and ingenuity."

No part of WinSmart, including the Pembina bikeway, was contingent upon rapid transit, but many were a close fit.

Other projects that could still go ahead include the purchase of diesel-electric buses, improvements to the park-and-ride and EcoPass programs and the upgrade of some existing bike paths in town.

Sources said the city's original proposal was among Transport Canada's favourites because it was the most integrated, with several programs for motorists, cyclists, transit riders and truckers.

Downsizing the WinSmart project means the city will be giving back almost $5 million in funding from the federal and provincial governments. The city's contribution will also shrink by $1.7 million.

Coun. Donald benham called that decision "irresponsible and thoughtless."

"Our innovative transportation program is three words: buy a car," he said. "We had $17 million from the federal government for rapid transit and we handed that back, and now we're throwing away money from the province and the federal government for more innovative projects.

The mayor;s executive policy commitee was warned earlier this week that Transport Canada may not agree to the scaled-down deal because the collection of projects may not respect the program's intent or spirit.

Councillors on EPC heard that the city is getting cold feet on the deal because detailed cost estimates n some of the projects were not verified. A budget shortfall that was thought to be a manageable $1.2 million has more than doubled to $3 million.

Coun. Gord Steeves, who sits on EPC, was WinSmart's champion, touting it on the floor of council when the project was one of the finalists to win cash under Transport Canada's urban transportatioi program.

But he said the city is now facing a tight budget and is looking at ways to scale back the project, which often means federal and provincial matching funds will also be scaled back.

"We're always in a funding crunch at this time of year and the province is in the same boat," said Steeves. "At the same time, we want the WinSmart project to go ahead in some form."

A spokesperson for Transport Canada said staff at the urban showcase program haven't yet formally seen the city's new proposal, so it is tough to guage whether it would win funding.

It is also not uncommon for a city to withdraw or rejig requests for funding, either because the money was found elsewhere or the project has been shelved.