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NEW YORK, NY October 28, 2005 —Now that MTA board members have endorsed a holiday fare reduction, some fear New Yorkers may be less inclined to vote in favor of a ballot initiative to borrow more money for transit. WNYC's Beth Fertig has more.

REPORTER: The Transportation Bond Act, or Proposition Two, would authoritize the state to borrow 2 point 9 billion dollars for transit projects. Half the money would go to the MTA. But with the MTA spending 50 million dollars of its surplus on a fare reduction, Andrew Albert of the MTA's Permanent Citizens Advisory Committee worries voters may get the wrong impression.

ALBERT: There is a perception out there that because all of a sudden there's a lot of money, they don't need the bond act.

REPORTER: Some board members wanted the MTA to postpone deciding on a fare reduction until after the November election. But MTA Chairman Peter Kalikow says the 900 million dollar operating surplus cannot be used on capital projects like those which would be funded by the Bond Act. For WNYC I'm Beth Fertig.