As straphangers continue to grapple with this year's fare hike, the MTA formally proposed Wednesday another increase for next year, as part of the agency's 2009 preliminary budget.

Officials say they are facing an unexpected shortfall of nearly $1 billion because of increased fuel costs and a drop in real estate tax revenue.

The agency says it needs to increase revenues from fares and tolls by eight percent, with another fare hike of about five percent planned for 2011.

On Wednesday's “Inside City Hall,” MTA Executive Director Elliot "Lee" Sander told NY1 that he is not happy about asking straphangers to dig deep again, but customers should see they are getting their money's worth.

"The system is much more dependable then it was before,” said Sander. “We are working very hard to improve it. They can just look at our website and look at all the different things we are doing with our text messaging — bus, rapid transit. We've engaged in a myriad of improvements that I think will have benefits."

The decision won't be made until December when the MTA board votes on its final budget.

If it is approved, the fare hike would go into effect next July.