Services cuts are likely for New York City's public buses and subways after a court decision that supports wage raises for transit workers.
The Metropolitan Transportation Authority lost its appeal of wage arbitration on Friday when a State Supreme Court judge ruled to support a 11.5 percent increase over three years for the Transit Workers Union.
The agency that runs buses, subways and suburban rail lines says wage hikes will add hundreds of millions of dollars to the budget.
An umbrella group for the city's unions says it welcomes the decision.
The MTA board will meet Wednesday to pass an $11 billion budget for 2010 while trying to plug a $343 million budget gap.
The board has pledged not to raise fares, but is likely to cut service.