New York, NY —

The head of the Metropolitan Transportation Authority is vowing to honor the agency's promise of no more fare hikes until 2011, even though New York's legislature approved a deficit reduction plan that took $140 million out of the MTA's budget. MTA chairman Jay Walder says he'll make have to make other adjustments to compensate. "I think we have a responsibility now to try to show how we can tighten our belt and how we can do things more efficiently and productively," Walder says.

The MTA's latest budget estimates show the agency has just enough surplus to make up for Albany's $140 million cut. But officials say the MTA could quickly find itself with a deficit if unbudgeted expenses--such as a major raise for union workers--arise before the end of the year.