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The board barely passed the measure, 7-6.

The MTA's finance committee narrowly approved a plan earlier this week, which requires police, fire, and other agencies to get their own pre-paid E-ZPass accounts, just like other drivers.

For the last 50 years, the MTA has allowed other government agencies to pass through the tolls free of charge.

The MTA is facing a $900 million deficit, and officials say this will generate about $10 million a year. The deficit could also lead to cuts in subway, bus, and commuter rail service.

They say the new policy will not slow down police and fire vehicles responding to emergencies, but the mayor's office is not happy about the decision.

"The bookkeeping management argument and ill will arising from this proposal is probably more expensive, in terms of the likelihood of coming together on the extremely serious issues that face all of us, than it's worth," said City Budget Director Mark Page.

"I'm not happy about having to do this. I certainly understand and am sympathetic to the city's position," said MTA Executive Director and Chief Executive Officer Elliot "Lee" Sander. "And the city, like the state, is facing great fiscal challenges. But from a substantive standpoint, the emergency vehicles will not be stopped. This is an accounting issue. And it's something that we need to do given the current state of the MTA's finances."

City agencies have several weeks to establish their own E-ZPass accounts.

Calling it an underhanded gimmick to poach money from city taxpayers, a mayoral spokesman said in a statement, "If they want more money, they should be forthright and ask, instead of lamely disguising this as E-ZPass reform. The MTA should get their own house in order before they start charging police cars, fire trucks and ambulances tolls while they are protecting the public."

Rider advocates side with the MTA, saying the city is in fact partly responsible for the MTA's financial crisis, having cut its subsidy to the MTA's capital program, for instance, by about $100 million a year.

"Both the state and the city have to be part of the solution to help the MTA get through this financial crisis," said Gene Russianoff of the Straphangers Campaign. "It can't all be borne on the backs of the riding public. And if that upsets the city, so be it."

Meanwhile, the MTA inspector general was investigating the bid process that lead to the agency being charged more than three times what it paid last year for fuel for city buses.

It negotiated a one-year contract extension in August with Sprague Energy, after it did not receive any other bids on a contract to deliver the custom-made diesel fuel, designed to minimize pollution from buses.

Officials said they agreed to pay $200 million for the contract because officials worried the system would run out otherwise.