With the Garden State $2 billion in the red, Gov. Chris Christie is swinging the budget axe. On the chopping block: NJ Transit’s $32 million subsidy – which means fare hikes and service cuts could be on the way.

NJ Transit riders could be forced to dig deeper into their pockets if the agency chooses to raise fares in order to make up for a $32 million subsidy Christie plans on withholding from the agency.

In a statement, a spokesperson for NJ Transit is not ruling out a fare hike, saying: “We are looking at everything — service and fare options, efficiencies — everything.”

Christie is making drastic cuts in all areas of government, saying the state is on the verge of bankruptcy.

“New Jersey Transit will have to improve the efficiency of its operations, revisit its rich union contracts, end patronage hiring that has typified its past, and may also have to consider service reductions or fare increases,” he said Thursday.

NJ Transit officials said they are not talking beyond the statement they’ve made. In the meantime, advocacy groups said what the governor is doing will not only hurt commuters in the pocket, but also create overcrowded rail cars.

(Source: CBS2 HD)