The Metropolitan Transportation Authority will be challenged to close multimillion dollar deficits over the next four years but the New York agency is expected to balance its budget through state and local government assistance, fare increases, or operating cost reductions, Standard & Poor’s said in a report last week.

The MTA last week proposed a 2009 operating budget, which includes a fare and toll increase in July 2009 that does not have the support of the governor. The increase would be designed to yield an additional 8% of revenue.

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