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Next month, Minnesota’s Metropolitan Council will hold public hearings to gather comments on a proposed fare hike and planned service reductions.

The governor’s proposed budget includes $372 million for transit operations in the fiscal-year 2006-2007 biennium, a 2.5 percent increase compared with FY2004-2005’s $61.1 million. However, the council needs to address rising fuel and health care costs, and lower-than-expected revenue from the state motor vehicle sales tax, according to a prepared statement.

Proposed fare increases could take effect July 1; service reductions, in September and December.