The MTA board met Monday to discuss ways of plugging its $1.2 billion budget hole, but didn?t release any specific solutions.

MTA CEO Elliot Sander blames the agency?s dire financial situation on declining revenue from real estate taxes, rising interest on its debt and less money coming from the state and city. By law, the MTA must have a balanced budget each year.

In September, Gov. David Paterson appointed a commission to make suggestions. The panel?s findings are due in December and are believed to consist of a combination of fare hikes, service cuts and tolls on free bridges like the Brooklyn, Manhattan, Williamsburg and Queensboro bridges.

"Whatever that mix that we come up with, in terms of fare and toll increases and service reductions, there's no question that they would have an impact, significantly, on our customers and on the functioning of that region," Sander says.

Sander adds it?s premature though to talk about any recommendations the panel might make. MTA Board Member Mitchell Pally says all options are on the table.

AP wire reports contributed to this article.