The Metropolitan Transportation Authority at a special board meeting on Thursday approved fare hikes expected to yield an additional 7.5% in revenue.

The increases on subway, bus, and commuter rail were agreed upon in principle as part of the New York Legislature’s rescue package for the cash-strapped transit agency last year. Another fare increase is scheduled for 2013.

State cuts and lower-than-expected dedicated tax revenues caused a $900 million funding gap this year, the MTA said in a press release. Internal cuts and efficiency measures will save a projected $380 million this year and provide projected recurring savings of $525 million next year.

“Given the magnitude of the budget shortfall the MTA faced in 2010, this fare increase would have been much larger if our efforts to fundamentally overhaul the MTA’s cost structure had not been successful,” chairman and chief executive officer Jay Walder said in a press release.

The cost of an unlimited-ride monthly MetroCard, used for subways and buses, will rise to $104 from $89, effective Jan. 1, 2011. The board also approved increases on commuter rail fares of between 7.6% and 9.4%, depending the type of ticket and distance traveled.

The board plans to consider toll increases on its bridges and tunnels later this month.

The MTA operates the largest mass transit system in North America.

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