The MBTA is looking to reduce its RIDE fares from $4 to $3, possibly resulting in an overall drop in revenue for the transit agency.

According to the State House News Service, Charles Planck, the MBTA Strategic Initiatives Senior Director, told the MassDOT’s Board’s Audit and Finance Committee that a proposed fare reduction will be brought to the MassDOT Board of Directors at a December 11 meeting.

Last year, RIDE rates were raised from $2 to $4. According to the News Service, the hike resulted in “about 60 percent” of RIDE users surveyed to take fewer trips, while the users making below $2,000 cut back on other necessities.

Backlash from transit advocates followed.

If RIDE fares are reduced, Planck believes, according to the News Service, the MBTA’s budget will be impacted in some way due to increased demand and cheaper costs. He was unsure of the exact implications on the T’s budget.

Planck estimated that the agency’s revenue would drop about $1.5 million per year, inflated to $3 million to $4 million annually once operation costs are considered.

With the MBTA already operating at close to an $750 million deficit, questions remain as to how the agency will be able to balance its budget.

When asked about the RIDE fare reduction and its possible impact on other MBTA services, agency spokesman, Joe Pesaturo told BostInno in an email, “In accordance with the Transportation Finance Law enacted this year, the MBTA plans to raise fares by 5 percent in next fiscal year.”

Pesaturo did not indicate whether or not reduced RIDE fares would have a direct on planned fare hikes.