The Massachusetts Bay Transportation Authority — the transit system that serves Greater Boston — is staring at a $118 million gap for fiscal 2014, which begins July 1.

"The MBTA remains in a financially precarious position," Rachel Barkley of Morningstar Municipal Research wrote in Morningstar's weekly newsletter.

The authority is awaiting a decision on state funding, with the Senate, House and Gov. Deval Patrick all recommending varying amounts.

The MBTA reported ridership down about 2% from the previous year through the first 10 months of fiscal 2013. The most dramatic drop came in April, 3.5%, with officials citing the Boston Marathon bombings, which forced a temporary shutdown of the system.

Fares rose 23% July 1.

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