The Port Authority likely will increase base fares by no more than 25 cents effective Jan. 1, authority Executive Director Steve Bland said today.

A draft budget for the fiscal year that begins July 1 projects a $4 million increase in fare revenue. Exactly how that will be raised has not been determined. Mr. Bland described a 25-cent increase in the $2 base fare as a "worst-case scenario."

But he also said fare increases are inevitable as a result of rising costs and flat state and county aid.

How the increase would be applied to cash customers and those who use tickets and passes will be determined after a budget is adopted in June.

Any fare increase is subject to public hearings.