It's too early to tell whether the University of Wollongong can afford to keep the Gong Shuttle free.
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Transport for NSW had planned to reduce funding and introduce fares on the popular green bus.
To keep the bus free, UOW and Wollongong City Council each agreed to contribute $350,000 for three years to fill the shortfall.
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That funding arrangement ends on June 30 next year and a UOW spokesman said "preliminary discussions" on a new deal have occurred.
"One meeting occurred on March 24, with all parties represented," the spokesman said.
" Although normal ongoing communications between the parties continues, a schedule of meetings for detailed re-negotiation of this agreement has not yet been established."
Earlier this year UOW Vice-Chancellor Paul Wellings announced a $90 million budget shortfall due to COVID-19, which would be felt for several years.
It raised the question whether the university could continue to offer funding for the Gong Shuttle after 2021.
"UOW has always stated its preference to see this service maintained, but it is too early to speculate about the availability of funds to contribute to this service in the 2021-2022 financial year and beyond," the UOW spokesman said.
A Wollongong City Council spokesman said the council still supported a 2017 decision to oppose the introduction of fares.
The council is also facing financial problems due to coronavirus, which could affect future shuttle funding.
"Council is expecting impacts from COVID-19 on its budget for 2020-21," the council spokesman said.
The council had recently voted to put its operating plan for 2020 -21 out for public exhibition.
That plan lists no funding allocation for the Gong Shuttle after 2021 but states that council will "advocate to the NSW Government to continue the Gong Shuttle as an affordable service beyond 2021".