PITTSBURGH -- Allegheny County Chief Executive Dan Onorato says he's ready to withhold the $27 million raised by the drink tax for Port Authority funding -- if the union representing bus and trolley workers does not reach a contract agreement soon.

Onorato tells Channel 4 Action News it's not a threat, it's just a financial reality.

Onorato said the Port Authority is in a dire financial state, and that the management and union representing its workers need to come to an agreement.

"Under the terms of the existing contract, well the contract that expired, under those terms, the Port Authority will be broke," Onorato said. "If they're out of money, there won't be service. I can't tell you what month that will happen, but it will happen in the very near future. There's a very, very strong likelihood it will happen in 2008."

The union's president, Patrick McMahon, sent a letter to Onorato on Monday, asking him to join the negotiations.

But Onorato said there are no political solutions at this time.

"If they get close and they need me to come in and finalize it, I'd be more than happy to do it. I'm not going to go into a meeting where they're miles apart and nothing's moving and right now, that's where they are."

Last week, the union rejected a fact finder's proposal that Onorato described as the "perfect compromise."

That opportunity is now gone, but Onorato said he would accept an offer if the rank and file ends up deciding to go with the fact finder's terms within three to four months.