The Port Authority of New York and New Jersey should turn the money-losing PATH commuter rail system over to New Jersey’s state-run transit agency to free up money for big infrastructure projects, a report released on Friday recommended.

The report, from the Citizens Budget Commission, says the large and rising deficits rung up year after year by the PATH system are a “major drain” on the Port Authority’s finances. Much of that burden could be lifted by reducing the subsidy the authority provides to PATH, shifting some of the cost burden onto taxpayers in New Jersey and New York City and raising fares significantly, the commission said.

This approach, if it received the political support it would require, could yield more than $300 million annually within a few years for the Port Authority to spend on the airports and marine ports that serve the metropolitan area, said Charles Brecher, consulting research director for the commission.

The commission usually focuses its attention on city and state budgets in New York, but recently decided to delve into the deteriorating finances of the Port Authority. The notion of transferring control of the PATH system to New Jersey Transit or the Metropolitan Transportation Authority was discussed at a hearing held this week by a special committee of the Port Authority’s board of directors.