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The Port Authority of Allegheny County is moving forward with a proposal to reduce transit service by 35 percent and increase fares due to a statewide shortfall in transportation revenue.

The proposed changes are intended to help balance the authority’s budget, which was adopted last month with a $47.1 million revenue shortfall.

Proposed fare hikes would increase the base fare for zones one and two, and the cost of passes and tickets, as well as introduce premium pricing for light-rail service and 13 express bus routes.

Service hours would be reduced by one-third, cutting the number of routes from 129 to 85 and leaving about 90 neighborhoods without any public transit service or with significant service loss, authority officials said in a prepared statement. At least 500 jobs also would be cut, they said.

Fare increases would take effect Jan. 1, 2011, and service changes would take effect Jan. 9, 2011.