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The proposed 7.3-mile, $1.47 billion light-rail project from Portland to Milwaukie took steps to close a budget gap that threatens the project.

The Joint Policy Advisory Committee on Transportation, composed of elected officials and representatives of area transportation agencies, approved a measure to put $27.4 million in bond money toward the project. If approved by regional government Metro, the funds would be matched by the Federal Highway Administration, which is funding 50 percent of the project, as much as $735.8 million.

The new local funds would be obtained by bonding against future Metropolitan Transportation Improvement Project funds. Metro receives federal MTIP funds each year for transportation projects. The measure JPAC approved today commits 12 years of MTIP funds toward funding projects by transit agency TriMet, including the light-rail project. Metro will pay the bonds back, in part, with the future MTIP funds.

When TriMet received word that the project would receive only a 50 percent match in funds instead of the 60 percent it had originally sought, the agency was forced to look for additional funds or cut back the light-rail project.

But TriMet general manager Neil McFarlane stressed that cutting is not the answer. If the project goes that route, he said, the light-rail line might not serve as many people as originally planned.  As planned, about 25,000 people will ride the new line each day by the year 2030.

The 17-member committee stressed the urgency of completing the financial plan for the project in time to apply for FHA funds by Sept. 20. Otherwise, the project could face a string of delays, which would ultimately affect the project’s July 2011 start date.