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Tomorrow, the Chicago Transit Authority (CTA) will hold a public hearing on its 2006 budget.

The authority has proposed an operating budget of $1.04 billion — an increase of $40.6 million, or 4.1 percent, compared with last year — that includes $524 million in public funding. The budget increase is necessary because of rising fuel, healthcare, claims and litigation expenses, according to a prepared statement.

CTA also plans to offset higher costs with a 25-cent cash fare increase. Pass prices and Chicago Card fares would remain the same.

In addition, the authority has proposed a five-year, $1.8 billion capital improvement program.