As part of the Reagan Administration's proposed budget cuts for fiscal year 1985, the 540 federal employees of the Cambridge based Transportation Systems Center (ISC) are destined to lose their jobs on October 1.

The Administration's decision to with draw the Center's $90 million federal support was announced last Thursday in Washington, just four days after President Reagan announced his bid for reelection.

An agency of the federal Department of Transportation (DOT), the TSC employs 540 federal workers and 300 support contractors from the local area and has conducted research projects for the DOT since 1970. The TSC prepares studies for such groups as the Federal Aviation Administration and the National Highway and Traffic Safety Administration.

Stewart B. Hobbs, Associate Director for Administration at TSC, said yesterday that there is a "level of concern" around the Kendall Square research facility these days, as several methods of transferring career employees to private companies are currently being reviewed.

"Secretary of Transportation Elizabeth Dole still has to appear before the subcommittee for funding sometime in late March or early April," Ralph added, noting that the proposed budget cuts cannot be approved until then.

Commenting on the impact this could have on the Cambridge area. Hobbs also said that the Transportation Systems Center and its six buildings have been the cornerstone of redevelopment and urban renewal in Kendall Square for the past fifteen years.