? The MTA approved a reduced fare increase of about 10 percent Monday, less than the nearly 30 percent hike it had originally proposed.

The reduced fare increase was made possible by a $2.26 billion state bailout approved by lawmakers last week. In addition to a 10 percent increase for the cost of an LIRR ticket, bus and subway fares will also go up to $2.25. A 50 cent surcharge for city cab rides is also included.

One very unpopular aspect of the plan that was criticized by business owners and lawmakers is the inclusion of a $3.4 million payroll tax.

?It is not a perfect solution, it is a political solution,? MTA Chairman Dale Hemmerdinger said.

Suffolk County's MTA Board member Mitch Pally said he reluctantly voted yes.

?I am not thrilled with the payroll tax,? said Pally. ?I am not thrilled with many other things in the legislation, but the Legislature and the governor had to do what they had to do.?

The plan passed the board by a vote of 11-2. LIRR fare hikes will go into effect on June 17, subway and bus fares will go up on June 28 and increases on bridge and tunnel tolls will rise on July 12.