Governor Paterson’s budget, released last Wednesday, could mean doomsday times two for transit riders and even poorer road and bridge conditions for drivers.

$104 million less than expected will come to the MTA in 2010, according to MTA Chairman Jay Walder, adding to the $383 million deficit announced late last year. The widening gap is due to further declines in tax revenues, including $63 million less than anticipated from the payroll tax enacted last summer.

Paterson’s budget does include $25 million specifically for NYC student MetroCards but this is much less than the $214 million the MTA has said it needs to continue free student passes.  Even with the small increase for the student fares, the proposal brings the agency’s operating funding gap to nearly $500 million.

Without additional city, state or federal aid, the MTA could decide to solve the looming budget gap with service cuts. This would require a second round of service cuts nearly as deep as those announced by the MTA on Friday, which are expected to save about $129 million per year ($62 million in 2010, since they will be phased in over the spring and fall).

Other transportation news from the budget:

A proposed $7 billion two-year New York State Department of Transportation capital program. This keeps state funding relatively constant from previous years, but is considerably smaller than the $25.8 billion, five-year program which NYSDOT had proposed (that program called for $8.4 billion in investment during its first two years). It’s unclear what this means for the MTA’s construction program. Traditionally, the two programs are dealt with in tandem, with similar time periods and dollar amounts.

Highway speed cameras. The budget calls on the Legislature to approve cameras to issue speeding tickets in 50 locations statewide — 40 in work zones and 10 in other areas. Tickets of $100 in work zones and $50 on highways are expected to raise $71 million in its first full year.

Cuts to operating assistance for non-MTA systems. The NYSDOT’s proposed capital program outlines the major operating shortfalls facing suburban and upstate transit carriers.  Paterson’s budget, which cuts $13 million in state aid to these carriers, will only make their situation worse.

Paterson’s proposal is just a starting point, and the next few months will see intense debate in Albany as legislators and advocates fight to stop cuts to their transportation network.