Mayor Hazel McCallion, who likes praising senior levels of government about as much as she likes regional government, did her part by lauding McGuinty on Friday for "a very progressive budget.

"You've tried to help every section of the economy in Ontario," McCallion told McGuinty in the presence of transit workers at Mississauga Transit headquarters on Central Pkwy. W. Employees were herded together to provide a backdrop for the Queen's Park press corps.

"You're trying to offset the downloading that we experienced under the previous government," the mayor said to McGuinty, who beamed for cameras while strategically-parked transit buses featured an electronic message with the Liberal budget slogan, "Building Opportunity."

McGuinty fended off criticism from the Opposition and media that he should have cut taxes or balanced the budget with the unanticipated revenues his government poured into new program spending, most of it on infrastructure.

"We could have sent everybody a $200 cheque (as Alberta Premier Ralph Klein did recently), but we wanted to do something that was durable and of lasting value," said McGuinty. "I'm pleased and proud that we've invested in infrastructure, and especially in public transit."

After discussions with federal Cabinet Minister Jim Flaherty, McGuinty said he's optimistic Ottawa will ante up its one-third share of the nearly $300 million needed for the Transitway.

In a telephone interview with The News late Friday, McGuinty said the funding is not contingent on federal participation. The $65 million is specifically for the Transitway and can't be used for other projects, said McGuinty, who plans to speak to Prime Minister Stephen Harper to "seize the opportunity" to participate.

The Transitway is an exclusive two-lane road for GO and City buses that will eventually sweep across Mississauga, paralleling Hwy. 403 through the city centre. Further along, the route will follow Eastgate Pkwy., move north to Renforth Dr., west to Hwy. 427 and then into Pearson International Airport.

While the Premier refused to speculate if his government's $1.5 billion deficit will be eliminated next year, in time for the October election, Mississauga West MPP Bob Delaney told a budget briefing earlier Friday that outcome would be a "safe assumption."

Nick Bye, treasurer of Local 1572 of the Amalgamated Transit Union representing 850 local transit drivers and maintenance staff, said the new money will help Mississauga Transit.

"We've got the most modern fleet in North America," he said. "But, the buses are really overcrowded. We've got to get more service."

Providing two cents of the gas tax for transit this year instead of one cent, and allowing the money to be used for operating costs rather than just capital expenses, "will help us catch up," said Bye.