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Yesterday, NJ Transit’s board approved a $1.79 billion operating budget and $1.35 billion capital program for fiscal-year 2011, which began July 1.

In addition, the board approved the purchase of 100 additional multilevel rail cars and 10 dual-mode locomotives. The rolling stock will replace aging equipment in the fleet, increase seat capacity and improve reliability, NJ Transit officials said in a prepared statement.

The agency faced a budget gap of approximately $300 million. To address the deficit, NJ Transit increased fares, reduced services and “increased internal efficiencies,” NJ Transit officials said.