The Metropolitan Transit Agency’s Chief Executive, Elliot G. Sander, has formally proposed an 8% fare and toll increase for July 2009 to be followed by regular 5% hikes starting in January 2011 and continuing every two years thereafter.

Sander’s proposal to the MTA board Wednesday is part of an effort to shore-up the agency’s projected shortfall of a staggering $900 million. The proposed fare hike of about 8-percent would increase metroCard prices by about 25 cents.

On Monday, the governor and mayor urged the MTA to look for savings before possibly raising fares and tolls for a second year in a row.

The double punch would total about a 12% spike over 18 month after a 3.85% hike this past March.

The last fare increase took effect in March. The $2 fare for a single subway or bus ride didn’t change, but monthly unlimited-ride MetroCards went to $81 from $76; weekly cards rose to $25 from $24.

(Source: WNBC)