Governor David Paterson greeted commuters this morning, hours after lawmakers in Albany approved a Metropolitan Transportation Authority bailout plan – featuring trimmer fare hikes and no service cuts.

The governor, who is expected to sign the deal, said that he wanted riders to know that while major fare hikes have been avoided for now, he does plan to pressure the MTA to change its organizational structure and be more accountable to the Legislature.

"We're going to have a widespread cleanup and clean out of the MTA," Paterson said. "And start getting this place working in an effective way. Because the one thing I've learned through this process is no one trusts anything the MTA says."

Both the State Senate and State Assembly held final votes Wednesday night.

In the State Senate, it was passed by a razor-thin party-line vote of 32 to 29, with one senator absent.

Under the $2.26 billion plan, subway fares will increase, but not nearly as much as feared.

The long-awaited plan will hike the base fare 25 cents to $2.25 and monthly passes will go up from $81 to $89, instead of the $103 originally proposed. Other fares will increase by 10 percent.

In addition, the massive service cuts and layoffs planned will be avoided.

Straphangers had mixed opinions as to whether the governor should be hailed for his efforts to get the bailout passed.

"I think that he should be considered a hero," said one rider.

"I don't consider him a hero; it's his job," countered another. "They have to show face, that's the way it is for politicians."

The revenue raised through the fare increase and taxes will go to paying off the agency's deficit and funding repairs to stations and other projects.

The deal includes a payroll tax to fund about two years of the MTA's five-year capital plan.

The annual fee for a driver's license will increase by $2, and there will also be a supplemental $25 car registration fee, an additional 5 percent sales tax on car rentals, and a 50-cent taxi surcharge.

Fare hikes of 7.5 percent will be necessary again in 2011 and 2013.

State Senate Majority Leader Malcolm Smith said that while he was hesitant about all of the new taxes, they were necessary.

"No one likes to tax people, there's no question about that," Smith said. "What we are trying to do is fix a system we agree... is horrible. The MTA, believe me, if I could take it apart tomorrow and send it to some MBA school and them restructure and fix it from bottom-up, I would do it overnight."

Most riders said that they were happy the fare hikes had been minimized and the service cuts eliminated. But, like Smith, many said they fear the chronic problems with the MTA will continue.

"I take the bus in every day. I do use the transit system. But I also know, as we should all know by now, whenever the government steps in to bailout somebody out, you can pay a lot now or pay a lot more later," said one rider. "I would rather see us bite the bullet now and do what we need to do to correct the system."

"For now it's a good start," said another.

"They feel like they're doing the right thing, but they're not asking anyone any questions to see how they feel before doing it," said a third. "

However, one transit advocate said that the bailout is a win-win for transit riders and drivers.

"Car drivers benefit from the MTA because if you put everybody that's on a bus or subway train on the roads, they wouldn't go anywhere," said William Henderson of the MTA Citizens Advisory Committee.

Also included in the proposal are changes to the MTA that lawmakers say will increase transparency accountability of the agency. An independent audit will be conducted to see if additional savings can be found in the MTA's budget.