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Yesterday, the New Jersey Transit board approved a $1.6 billion fiscal-year 2008 operating budget and a fare increase that will help offset a projected $60 million deficit.

To take effect June 1, the new fare plan calls for increasing Newark light rail and River LINE base fares from $1.25 to $1.35, and raising the systems’ monthly fares 9.9 percent. The agency also will increase Hudson-Bergen light rail base fares from $1.75 to $1.90, and raise the line’s monthly fare 9.9 percent. Other rail fares will increase an average of 9.9 percent.

In addition, NJ Transit will begin the morning peak period at 7 a.m. instead of 6:30 a.m. so passengers can use discounted off-peak round-trip tickets an additional half hour.