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Edmonton will face a $23-million shortfall on transit funding after the province decided not to contribute its traditional one-third share to match a federal stimulus grant.

It has promised 25 per cent of the total transit cash instead.

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That’s a disappointment, Mayor Don Iveson said Thursday. The city will find a way to make up the difference this time, but it’s worrying because other, larger transit grants are coming.

This is Phase 1 — $3.4 billion — of the $20-billion transit stimulus promised during the last federal election. Phase 2 is worth $16.6 billion nationally. That’s what Edmonton is counting on to actually get LRT lines built.

“If the funding arrangements there are 50/25/25, then quite frankly, we won’t be able to keep up,” said Iveson. “That would be a huge lost opportunity.”

Edmonton is planning for roughly $300 million of design and maintenance work under the first phase. It’s now clear half the money will come from Ottawa and a quarter each from the province and the city. The new details were released in a report heading to council Tuesday.