Raising the one-way base fare on subways and buses to $2.50 is the most likely fare-increase scenario, the chairman of New York's Metropolitan Transportation Authority said.
The authority, which also operates commuter trains, bridges and tunnels in the New York City region, must plug a $450 million budget gap.
"The base fare will probably go up, because if it doesn't go up, it will have a huge impact on the people who take the monthly pass and use discounted fares," Joseph Lhota said on John Gambling's talk show on radio station WOR. "The majority of people either take a seven-day pass, a 30-day pass or use the discount pass, and I think we need to focus on how to keep the cost as low as possible for them."
The MTA plans a series of public hearings this fall and its board will decide on the increases in mid-December. If enacted, they would take effect around March 1.
The authority plans a $360 million sale of transportation revenue refunding bonds the week of Oct. 29.
Moody's Investors Service rates the MTA's transportation revenue bonds A2, while Fitch Ratings and Standard & Poor's each assign A.
