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Public transit systems are faced with cutting services and hiking fares — on top of similar steps enacted during the past budget cycle — to deal with less funding assistance from state and local governments, according to a new study by the American Public Transportation Association (APTA).

Nearly 80 percent of public transit agencies implemented fare hikes or service cuts in 2010, and some are considering them for the future “because of flat or decreased local and/or regional funding,” APTA officials said in a prepared statement.

The report, “Impact of the Recession on Public Transportation Agencies,” noted the top causes of agencies’ budget stress is flat or decreased local, regional and state funding, and rising fuel prices. Seventy-one percent of responding agencies reported flat or decreased local and/or regional funds, and 83 percent received a flat or decreased amount of state funds. Those funding declines were in addition to stagnant funding in 2010, APTA said.

“Public transportation systems are currently experiencing decreases in their funding during a time when many are serving an increased number of riders,” said APTA President William Millar. “Systems are forced to continue to freeze positions and lay off workers, which makes providing necessary transit service even more difficult.”

About 63 percent of larger agencies implemented or approved hiring freezes, more than the 54 percent reported in the 2010 survey, APTA said. Seventy-five percent of larger agencies cut positions and 46 percent reported implementing or approving layoffs.

Millar called on Congress to increase federal funding for public transportation. The U.S. House Transportation and Infrastructure Committee recently proposed to cut an additional 37 percent in federal funding for public transportation and all surface transportation programs.

“Federal investment is essential to preserve critical maintenance and replacement of older vehicles for larger systems and to maintain crucial day-to-day operations for smaller transit systems,” said Millar. “Clearly, local and state governments will not be able to make up the difference as these needs increase.”