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Yesterday, Metropolitan Atlanta Rapid Transit Authority (MARTA) officials presented a $787.6 million FY2010 budget recommendation to the board's Business Management Committee.

The budget includes $399.1 million for operating expenses and $388.5 million for capital projects, including $134 million for debt service.

MARTA is facing a sizable budget deficit in FY2009. To cover it, the agency has proposed a 25-cent base fare increase, three-year adjustment in pass prices, $1 parking fee hike at nine lots, and adjustments to rail service headways and hours of service. Authority officials also have proposed implementing variable-based fares by FY2012.

In addition, MARTA officials recommended eliminating annual merit increases, increasing medical benefit contributions and implementing a 10-day furlough for all non-represented employees. Amalgamated Transit Union Local 732, which serves MARTA's represented employees, has agreed to a 15-month deferral on collective bargaining.

The proposed spending plan assumes that the Georgia Regional Transportation Authority and Gov. Sonny Perdue approve the Atlanta Regional Commission's proposal to reallocate $25 million in American Recovery and Reinvestment Act dollars to MARTA, agency officials said.

The authority will hold a public hearing on the budget proposal next month and present the spending plan to the full board on June 22.