After months of tense negotiations, the state Legislature finally approved a $2.6 billion financing plan for the Metropolitan Transportation Authority on Wednesday.

MTA CEO Elliot Sander gave his resignation the day after the Legislature passed the MTA funding plan.The move will provide much-needed capital for maintenance and modernization projects throughout the years 2010-2014, and will enable the MTA to keep layoffs, service cuts and fare and toll hikes to a minimum.

Still, commuters will see a 10 percent jump in the cost of their morning commute (monthly MetroCards are slated to go from $81 to $89, and one-way cash fares from $2.00 to $2.25), and New York businesses will have to pay slightly higher payroll taxes. Taxi passengers will also incur a new drop-off free.

An accessible, working and affordable mass transportation system is the single most important sustainability issue for any major city, and while this plan will most likely not see an end to the MTA's woes, it will keep it afloat during these tenuous financial times.

"This new plan for mass transit funding is a step in the right direction, and we applaud Speaker Silver, Gov. Paterson and Majority Leader Smith for working out a compromise that addresses some of the MTA's capital needs," said Marcia Bystryn, president of the New York League of Conservation voters. "It is unfortunate that bridge tolls were not part of the final plan, but we look forward to working with our elected leaders to build on this effort and develop a comprehensive plan that will provide a sustainable funding stream for both the MTA's capital and operating needs."

On Thursday, MTA chief executive Elliot G. Sander also announced that he would be stepping down to give. Gov. Paterson the change to take the agency in "a different direction."