MANHATTAN - The MTA unveiled its doom-and-gloom budget Thursday that includes a 23-percent fare hike and cuts to service.

The measures are designed to close a $1.2 billion budget shortfall in 2009. In addition to the fare hike and service cuts, the MTA is looking to eliminate 2,700 jobs across the board.

"These actions collectively close our 2009 gap," says MTA CEO Eliot Sander. "But I will point out as a result of the economy we do have significant gaps in the outer years."

Hearings on the budget will be held next month. The changes would go into effect in June following a vote by the board.