The San Francisco Municipal Railway decided last week to use fare increases and service cuts to balance a bloated budget deficit.

The measure is causing argument among the Board of Supervisors and residents who feel the increase will hamper efforts to keep Bay Area residents out of their cars and in public transportation.

According to the measure, the basic adult bus and streetcar fare will increase to $2 July 1, a 50-cent increase, as will the cost of monthly transit passes. Discounted cash fares for seniors, the disabled and youth will also go up from 50 cents to 75 cents.

The decision on August 30 also approved service cuts that will affect about half of the system's 80 lines.

Eight bus routes were discontinued beginning July 1: The 4-Sutter, 7-Haight, 16-Noriega morning express, 20-Columbus, 26-Valencia, 53-Southern Heights, 74X-Culture bus and the 89-Laguna Honda. Others will have their routes modified or hours cut back.

Some SF State students expressed concern over the increase because they feel it will do little to improve San Francisco's public transportation.

"If prices go up and the [MUNI] system stays the same there's something wrong with the system," Mike Trumpfheller, a philosophy major, said.

SFMTA faced a $129 million budget deficit for the 2009-2010 year. The changes allow the agency's governing board to clear the deficit and adopt a $784 million operating budget.

"I understand [SFMTA] has a lot to deal with; sometimes, you got to do what you got to do," said Matthew Harper, a history major.

During a board meeting, MUNI chief Nathaniel Ford called the situation "dire" and said that despite efforts to reduce costs, MUNi had "no other recourse except to propose fairs and fees and reductions of some of out lease efficient service." The San Francisco Board of Supervisors recently voiced concern over the planned transit fare hike.

Members rejected the SFMTA budget on Tuesday stating the MTA budget is "inconsistent with the goals of the MTA's draft Climate Action Plan which calls for an increase in transit ridership and a reduction in private vehicle trips."

Supervisor David Chiu and other supervisors are spearheading efforts to renegotiate the SFMTA decision in the upcoming week.

Arielle Rostenstein, a graduate student, is forced to take alternative transportation to school.

"Looks like I'm going to find a good bike route for summer school. I can barely afford the $45 monthly pass in the first place," she said.

MUNI isn't the only Bay Area agency facing a staggering budget deficit. BART is dealing with a $54 million deficit and will also consider fare increases.

The BART board of directors will meet tomorrow to discuss options to relieve the deficit. They will ultimately decide the budget proposal and vote on whether to raise fares, raise parking fees or have layoffs.

"The budget deficit is very challenging and we are looking at a number of ways to cut costs," said BART spokesman Jim Anderson.