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Barring some sort of miracle in the form of more transit money from the city or provincial government, TTC riders should brace themselves for a fare hike next year.

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That’s the message TTC vice-chair Peter Milczyn was delivering on Thursday, a day after the commission approved a new advertising contract that will add millions to its coffers, but not enough to cover a projected budget shortfall next year.

Mr. Miczyn said the TTC is facing an $80-million gap in 2012, not including a new labour contract with its workforce. The funding gap is due to a hike in diesel prices, inflation, more service to accommodate ridership and what will likely be a smaller subsidy from the city, he said.

TTC chair Karen Stintz has earlier said she expected the transit authority’s subsidy to be cut by 10%.

“We have to make up the shortfall somewhere,” said Mr. Milczyn (Etobicoke-Lakeshore).

“If we’re not getting increases in subsidy, it’s going to come from the fare box. Or, it’s going to be cuts, and I don’t think anybody is going to want to cut back on service that is utilized by people,” said Mr. Milczyn, who noted the controversy over the TTC’s decision earlier this year to scale back service on underused routes. He favours a fare hike over a service cut, but did not propose any specific amount. And he said it need not be across the board, affecting cash fares, tokens and metropasses.

If it comes to this, Mr. Milczyn says he will sell it to riders “by being very clear with them. If you really need the Dufferin bus, would you be willing to pay more for it or potentially not have it, or not have it as often or on weekends, because those are the choices.”

The TTC last hiked up fares in 2010, by 25 cents, in order to raise $62-million.