The five Tyne and Wear metropolitan districts are to cut their contribution to Nexus by £1.2m to £61.8m.
Meanwhile the seven local authority members of the NE Combined Authority will cut their contribution by £1.1m to £83.6m.
It is the fourth year in a row that the transport levy has been cut.
More than 60% of spending is on the concessionary travel scheme, while £16m covers contracted bus services.
Overall, the levy has been cut by £16.2m since 2010.
