NEW YORK - November 18, 2008 - The Metropolitan Transportation Authority reportedly is ready to make deep cuts in its budget that could lead to reduced service, layoffs and more crowded trains. Sources tell CBS 2 the association board is preparing a worst case "Doomsday" scenario that will be presented during its monthly meeting on Thursday.

When describing the agency's budget crisis last week, MTA CEO Elliot Sander said, "The word 'Draconian' is not inappropriate."

During the Thursday meeting, The MTA is expected to: completely do away with the "W" line, which runs from Queens to Manhattan, and the "Z" line, which runs through Queens, Brooklyn and Manhattan. Also on the chopping block: service will be cut in half on the "G" line, which runs from Queens to Brooklyn; and the "M" line, which runs through Brooklyn, Manhattan, and Queens.

The bad news may get even worse. In an effort to close an estimated $1.2 billion budget deficit, there may also be longer gaps between overnight stops on all trains and fewer trains during the late morning and early afternoon hours.

That means more crowded trains. And in addition to all of these emergency measures, there's still a good possibility fares will increase dramatically.

Gene Russianoff of NYPIRG 's Straphangers Campaign said, "I can't give you an exact number, just the adjective: whopping. It would be a huge fare hike for the public."

The news comes a day after city officials discussed a commuter tax on those who work in the city. City budget director Mark Page seemed exasperated Monday at a City Council hearing where the head of the council finance committee demanded the reinstatement of a commuter tax to balance the budget.

"Clearly that's a tremendous revenue stream that should directly go to the city of New York," Councilman David Weprin said.

Estimates are that a new commuter tax could bring in $715 million next year.