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Yesterday, the New York Metropolitan Transportation Authority’s (MTA) board approved a 2010 budget that projects total operating revenue of $6.4 billion and total operating expenses of $13.6 billion. The agency is required to pass a balanced budget by year’s end.

The budget addresses a $383 million deficit that developed the past few weeks primarily because of a $143 million state budget cut, a projected $49 million reduction in dedicated state tax revenue and expected $100 million cut in New York’s payroll tax, and $91 million cost associated with a failed appeal in a labor arbitration case.

The budget calls for a 10 percent cut in payroll for non-represented workers through furloughs and a pay lag, or other measures; a series of service reductions that were adopted by the MTA’s board last year, but never implemented; and the elimination or reduction of certain student fare discounts.

“Given the ongoing downturn in the broader economy and the resultant economic crisis facing the state, we have worked to balance the budget while maintaining our commitment to riders not to increase fares in 2010,” said MTA Chief Financial Officer Gary Dellaverson in a prepared statement.

The MTA plans to hold public hearings in early 2010 to review the planned service changes.