Two years have passed since the Phoenix STS program faced
the loss of funding for its East Valley operations. 

During the two years,
Phoenix STS has attempted to broaden the funding base of the entire program,
but with particular emphasis on the East Valley service area. The program
manager has just received an end of the accompanying fiscal year financial
report showing revenues and expenses for the three transportation service
areas. 

The report shows that overall the transportation program made a profit
(had an excess of revenues over expenses) for the fiscal year. But for its East
Valley operations, the transportation program had a loss. 

Based upon the
financial report, the program manager decides to recommend discontinuing
transportation services in the East Valley service area. Is this a good
financial management decision? Why? Why not?