Port Authority is proposing a 5 to 10 percent fare increase next year as an attempt to close an operating deficit, officials said Friday.

The base fare for riding within a single zone could go up as much as a quarter to $2.25, said authority CEO Steve Bland. Officials would review all fare structures before any increase would take effect Jan. 1.

When raising fares, Port Authority sets a revenue goal, then holds a series of public hearings on how to restructure its prices, zones and passes to meet that goal, he said.

Even if fare increases raise revenue for fiscal 2010 by $4 million, and the transit agency transfers another $4.5 million for preventative maintenance from its capital budget, it still faces an operating deficit of $3.2 million due to rising health care costs and state funding that will stay flat, Bland said.

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