Port Authority ridership has climbed 3.5 percent over the past year, reflecting a national trend that has seen public transit use rise to record highs.

The authority has rebounded to about 96 percent of the ridership it had before a funding crisis led to a 15 percent service cut in June 2007, followed by a 14 percent increase in the base fare and 25 percent increase in monthly passes in January 2008.

But the ridership gains might be in jeopardy, as the authority board considers options for dealing with a projected budget deficit in the fiscal year that begins July 1. Another fare increase is likely, and more service cuts are possible.

While a labor contract reached in December with the union representing drivers and mechanics has produced savings, the authority continues to deal with flat state and county aid, the value of which gets eroded over time by inflation.

With the state facing a projected $2.3 billion deficit, prospects for increased state aid in the coming year are almost nil.

The authority's board of directors is expected to hear a briefing on the upcoming budget and options for closing the deficit when it meets this morning.

It is unlikely that the board will hear specific options for increasing fares, but authority CEO Steve Bland has said for months that he expects an increase as of Jan. 1 to keep pace with inflation.

The authority's bus, rail and paratransit vehicles provided an average of 232,262 rides on weekdays in March, compared with 224,448 in the same month a year earlier.

The service cuts and fare increases had caused a 7.6 percent decline in ridership from March 2007 to March 2008.

"We're getting back to that level where we want to be," authority spokesman Jim Ritchie said. "We haven't fully rebounded. Hopefully we'll see some of that this summer."

The American Public Transportation Association reported last month that national transit ridership hit a 52-year high last year, with 10.7 billion trips taken, a 4 percent increase over 2007.

"Nationally we're seeing an upward trend in transit ridership. Our numbers show we're part of that," Mr. Ritchie said. "People are traveling less in automobiles and more on buses and light rail."

Acknowledging that those gains could be blunted or reversed if budget woes push fares higher, he said, "We'd hate to go backward at this point."