Largely with voter-appro- ved sales taxes but also with federal grants, the public subsidizes 83 percent of the Utah Transit Authority's operations - and also some of the largest transit-executive salaries in the country, state auditor James Behunin told members of the Legislative Audit Subcommittee on Friday.

Fares cover just 17 percent of operating costs, and the auditors suggested the agency should set a minimum recovery ratio and raise fares to limit the subsidy even if that means growing ridership more slowly.

"We believe that UTA's goal to increase ridership is important, but the agency should give additional consideration to the need to minimize the taxpayer subsidy of transit service," wrote the team led by audit manager Rick Coleman.

After the audit presentation, UTA General Manager John Inglish said mandated farebox recovery ratios are a throwback to the 1960s, when bus companies were still profitable. Tying the agency to a fare mandate would cripple its ability to get riders out of their cars, he said.

"That's what the sales tax is for," he said.

UTA's service takes 21,000 cars off the roads during each peak-commute period and serves 4 1/2 percent of working commuters, Behunin said, but the unhealthful nitrogen oxide that the buses belch more than offsets the air-quality improvements from electric light rail. Agency officials accept that finding but say their newest buses are cleaner and within 10 years the fleet will emit a 20th of the current levels. They also contend that today's fleet saves on greenhouse gases compared to the automobiles they displace.

Salaries for top executives are substantially higher than those at a long list of peer agencies around the country, Behunin said. Inglish, for instance, made about $267,000 in base salary last year, compared with a $196,000 average in a survey of other transit agencies. Inglish also received a $40,000 performance bonus.

UTA board of trustees President Orrin Colby said Inglish is worth the money. Utah consistently ranks among the top states for attracting federal transit grants, he said.

"We ought to be paying people based on what they do and what they bring to the community," Colby said.

The auditors found UTA's bus routes especially costly. Because UTA buses serve routes that are more sparsely populated than in communities including Portland, Phoenix, Dallas, Denver and Sacramento, its cost per passenger is higher than most. That cost is $4.35 in Utah, compared to $2.25 in Phoenix and $3.39 in Denver. Only Sacramento's cost is higher, at $4.81 per passenger boarding.

Inglish said the agency constantly re-evaluates bus routes and underwent a major overhaul last summer to address the problem.

By contrast, UTA's light rail draws more riders per trip than the bus system, and is more cost-effective than most peer services. At $8.18 per vehicle mile traveled, UTA is second to Denver in holding down rail costs. But it also has the highest number of boardings per mile - 5.38 - making its $1.52-per-boarding expenditure cheapest among the five reviewed agencies.

* Taxes cover 83 percent of service.

* Service replaces 42,000 peak-hour commuter car trips daily.

* Buses emit 18 times as much nitrogen oxides as cars, wiping out light rail's pollution reduction.

* $4.35 cost per bus boarding is higher than most comparable transit agencies.

* $1.52 cost per light-rail boarding is lower than most.