As students who ride the Town and Campus Loops may have already discovered by now, fares have increased by 5 cents for the second time in a year.

The agreement to increase the Loop fare to 35 cents was formally announced at a Dec. 16 meeting between the Centre Area Transportation Authority, the University and the Centre Region Council of Governments.

"This is a temporary agreement to avoid elimination of the Town Loop and to give time to re-evaluate the situation," said CATA General Manager Kevin Abbey.

A more permanent solution may come when the University's plans for parking and transportation are updated.

Along with a more thorough look into Town Loop funding, this study will also include parking and transportation issues related to new development plans such as the Research Park and the Academic/Athletic Convocation and Events Center.

The increase marks the second fare hike in a year. The authority raised the cost to 30 cents last January to combat high fuel costs triggered by the Persian Gulf crisis.

Although the Dec. 16 meeting came after students left for the holiday break, Abbey said he did not expect a decision while students were away.

"It was an unfortunate set of circumstances. We met with the University throughout November and December to work at continuing the service and an agreement was not reached until a week before the meeting," he said.

With about 1 million riders a year, the nickel increase for the Loop is expected to raise an extra $50,000 for the authority. This would compensate for the $49,000 subsidy the State College Borough Council will not provide this year.

The University will work with representatives from Centre County, the Centre Region and the State College Area School District to come up with a way to help finance CATA and other municipal services.

University officials are satisfied with the agreement on the 5 cent increase.

"Rather than subsidizing the Loop through use of tuition money or state funds, it was jointly felt that the most equitable solution would be for the Loop ridership to provide the additional revenue," said Steve Garban, senior vice president for finance and operations and University treasurer, in a news release.

Garban emphasized the importance of the Town Loop, noting the extensive use of the service by students living in apartment complexes such as the new Gateway Apartments.