A decision by the Pallister government could see funding cuts and bus fare increases in Winnipeg.
On Thursday, the province's budget implementation law ended a long-standing deal to fund transit operations on a 50-50 basis.
Instead, the city will get an annual amount of funding determined by the province.
City Public Works chair Marty Morantz says the move could impact bus fares and how transit is funded.
The budget bill also ended a deal to tie infrastructure money to a percentage point of the provincial sales tax.
Mayor Brian Bowman has said in the past he wants to ensure the province doesn't balance its books on the backs of Winnipeg taxpayers.
The province says Winnipeg is receiving the same amount of funding as the previous year.
The provincial government is facing an $840 million deficit.
