The Centre Area Transportation Authority approved a proposed preliminary budget for 1991-92 that includes service cuts and a fare increase.

The $2.87 million balanced budget represents a 2.5 percent spending increase over this year's budget, said CATA General Manager Kevin Abbey.

Abbey said that the 10 cent emergency fuel surcharge implemented in January, which raised fares from 75 to 85 cents, will become permanent under the proposed preliminary budget. The surcharge, which was to be lifted in May, was adopted as a result of the Persian Gulf crisis to counter rising fuel costs.

A decrease in Federal and State aid in the coming fiscal year has prompted the fare increase and service cuts which will include drastic cuts during summer, Christmas and Spring Breaks, Abbey said.