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Last week, New York Gov. David Paterson signed legislation that will provide additional operating and capital funds for the Metropolitan Transportation Authority (MTA) during the next two years, enabling the agency to avoid the massive fare hikes and service cuts it proposed in March.

The state legislature approved a plan to increase vehicle registration and driver's license fees, as well as vehicle rental fees, to generate an additional $260 million for the authority. MTA still will raise fares 10 percent, but the hike is considerably lower than the previously proposed fare increase, which topped more than 30 percent for some services.

The additional revenue will help fund MTA's operating budget and enable the agency to continue infrastructure repair programs.

The bill also includes regulations that will strengthen MTA's governance, and increase the agency's transparency and accountability, according to a statement released last week by Paterson's office.

In addition, the legislation states that MTA Chairman Dale Hemmerdinger's term, previously set to expire in 2011, now will expire in 30 days.

Meanwhile, MTA Executive Director and Chief Executive Officer Elliot Sander announced his resignation on Thursday after the legislation was signed. To take effect May 22, the resignation will enable the governor to take the authority in a different direction, Sander said in a statement.

Sander joined MTA in January 2007. During his tenure, MTA merged back office functions across seven agencies, introduced line general managers on the subway system and integrated its three bus companies.