Metro Transit said it might not be able to offer a discount transit service for Halifax university students this year. (CBC)

Metro Transit says it can't continue a discount transit service for Halifax university students unless it gets a 15 per cent increase.

The program, known as UPass, offers full-time students unlimited access to regular transit services during the academic year for an annual fee.

Metro Transit had contracts with several universities, including Saint Mary's, Dalhousie, King's College and Mount Saint Vincent, but those contracts have expired.

Transit officials expected a 15 per cent increase when the contracts were renewed. The increase is included in this year's municipal budget and would have been the first significant hike in seven years.

But the universities say Metro Transit didn't give them enough notice about the increase.

"In order for me to be legally allowed to sign that contract to increase a fee, there has to be a referendum question where the student body would have the ability to agree to such an increase. Unfortunately we weren't notified in time to have a referendum," said Matt Anderson, president of the Saint Mary's students' association.

Local councillor Sue Uteck, who represents the city's south end, said she wants to keep students on buses and out of cars, but she said to do so will be costly.

"It's our job now at council. We're going to have to absorb that loss, which is almost $500,000, and look for it within our existing budget."

Uteck said from now on contracts between Metro Transit and the universities should be negotiated at least one year in advance.