Bus services in Tyne and Wear are to be cut back after transport chiefs failed to get extra government funding.
Transport operator, Nexus, needs to make up a £7.3m shortfall to fulfill a pledge to give pensioners free travel.
But on Tuesday the transport operator learned it was only going to receive £1.7m, and said cutbacks would follow.
A spokesman for the Office of the deputy Prime Minister (ODPM) said it would continue to "hold talks" with Tyne and Wear transport operators.
David Wood, chair of the Tyne and Wear Passenger Transport Authority, travelled down to London to be told the news.
He said: "This is really disappointing news, I travelled to London to hear this announcement but had a wasted journey.
Axe route
"Free bus travel for pensioners will go ahead, but there are serious decisions to be made and cutbacks to other services.
"We are hoping not to cut school services, but there will be cuts and the decison will be in a week's time.
"In the meantime I have asked Nexus to come up with options and scenarios that will minimise disruptions to passengers."
Nexus said student services, travel discounts for children, special care buses and services running through housing estates were all under threat because of the budget shortfall.
One of the services facing the axe is a route through Whitley Bay in North Tyneside used mainly by pensioners.
A spokesman for ODPM said: "We are aware of the representations of the Tyne and Wear PTA and will continue to talk to them about their points."
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