Metro released a revised budget proposal Monday that will ward off severe service cuts previously proposed in December, but it will include significant fare hikes and other service reductions following the transportation system’s $750 million budget shortfall. 

The proposal needs to be approved in three jurisdictions (Washington, D.C., Maryland, and Virginia) before the transit system can avoid devastating cuts to bus and Metrorail services, the Washington Post reported.   

To close the budget deficit, Metrorail and Metrobus fares would climb 12.5%, which would raise the current $2 fare to $2.25 and increase the maximum fare from $6 to $6.75. Metro said it would do more to combat fare evasion, such as implementing high barriers at fare gates, according to the outlet. On weekends and late nights, fare hikes would increase by up to 25%. Riders who are a part of the low-income Metro Lift program would see fewer increases, WJLA reported.  

“We are as optimistic as we can be. Everybody has to be eyes wide open. Nothing is done until something is signed, and those budgets have to be completed,” Metro General Manager Randy Clarke said.

The new proposal takes the bus system off the chopping block. Instead, it plans to redesign the bus network, and rather than closing 10 subway stations, as previously proposed, Metro will run six-train cars versus its usual eight.

The budget proposal also details efforts to transfer $165 million from a preventive maintenance fund used for repairs and upkeep to an operational budget, which raises concerns from Metro officials.

“The preventative maintenance fund is not intended to be used as a rainy-day fund,” district officials wrote in a letter last week to Metro.

In the letter, the district pledged $200 million in financial support for Metro. On top of that, Maryland also pledged to boost its spending by $150 million, and Virginia followed suit with $130 million, in addition to the three jurisdictions’ previous pledged funding agreement of $1.36 billion, per the Post.

While Monday’s proposal avoids steep cuts, the transit system could face future budget problems.

“This framework is going to hopefully get us through the next two years, but we still have a long-term funding issue here. I think we all recognize we need to find a dedicated funding source that’s going to address that,” Metro Board of Directors Finance Committee Chairman Matt Letourneau said.