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Yesterday, New York’s Metropolitan Transportation Authority (MTA) released its fiscal-year 2011 preliminary budget and proposed four-year financial plan, which would implement a significant fare hike the next three years.

The proposed plan reflects internal cost-cutting measures taken in response to a $900 million shortfall for 2010 caused by cuts in state assistance and less tax revenue, MTA officials said in a prepared statement.

The plan consists of three components: cost-cutting initiatives that have saved the agency $380 million in 2010 and are expected to save the agency more than $500 million in annual recurring expenses; controls to labor costs, which make up two-thirds of MTA’s operating expenses; and a 7.5 percent fare increase in 2011 and 2013.

“The foundation of this plan is the most aggressive and comprehensive overhaul in the history of the MTA,” said Chairman and Chief Executive Officer Jay Walder.