New York’s mass transit agency voted Monday on a new package of fare increases that will raise the cost of a subway ride from $2 to $2.25.

The vote by the board of the Metropolitan Transportation Authority came after the state Legislature approved a $2.26 billion bailout for the agency last week.

Overall tolls and fares will go up about 10 percent — smaller than an earlier plan to boost them up to 30 percent.

The bailout also calls for a 50-cent surcharge on taxi rides, increases in vehicle registration and license fees, and a payroll tax on employers in counties around New York City.

Meanwhile, just one day after the bailout was approved by New York State lawmakers last week, the MTA’s executive director and CEO Elliot Sander resigned.

You may not know his face or name, but Sander has led the nation’s largest mass transit agency since 2007.

“I think it’s fair to say I’m leaving because the governor wants me to,” Sander told CBS 2 HD in Douglaston, Queens on May 7. “It’s his prerogative choose who he wants to be chair and CEO of the MTA and I’ve made it clear that it’s his choice.

“I would prefer to stay. For me, it was a dream job. I am very proud of the progress we had made in the two and a half years.”

Sander was appointed by Eliot Spitzer to the post and Gov. David Paterson apparently wants his own man to run the restructured agency. Hours before lowering the ax he was talking tough about the MTA.

“Were going to have a widespread clean-up and clean-out of the MTA and start getting this place working in an effective way,” Paterson said.

Sander was not responsible for the MTA’s borrowing binge and has gotten high marks from transit watchdogs who call his departure yet another setback for the embattled agency.

“I don’t know if Lee Sander was forced out or that if it was voluntary. The bottom line is he was very good and if we ruled the world we would have begged him to stay.” said Gene Russianoff of the Straphangers’ Campaign.

(Source: WCBSTV)