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Yesterday, the New York Metropolitan Transportation Authority (MTA) board approved a series of fare policy changes — including fare hikes — that are expected to generate a 7.5 percent increase in fare revenue. The fare increase, along with one planned in 2013, was agreed upon with the state legislature as part of the MTA rescue package enacted in May 2009.

The fare hike would offset a $900 million funding gap caused by shortfalls in new and dedicated state taxes and cuts in state aid, MTA officials said in a prepared statement.

Single-ride fares on MTA New York City Transit will increase from $2.25 to $2.50 and most commuter-rail tickets on MTA Long Island Rail Road and MTA Metro-North Railroad will rise between 7.6 percent and 9.4 percent.

In addition to the fare increase, a series of internal cost-cutting measures is expected to save the agency $380 million in 2010 and generate more than $525 million in annual recurring savings that could grow to more than $750 million by 2014.

“Given the magnitude of the budget shortfall the MTA faced in 2010, this fare increase would’ve been much larger if our efforts to fundamentally overhaul the MTA’s cost structure had not been successful,” said MTA Chairman and Chief Executive Officer Jay Walder.