New York Gov. Kathy Hochul will seek to raise payroll taxes on downstate businesses and use revenue from new casinos to bolster mass transit in New York City as part of her proposed state budget on Wednesday.

The Democratic governor is proposing an additional $1.3 billion a year for the Metropolitan Transportation Authority through the actions, her aides said. That includes a call for New York City to contribute roughly $500 million more to the authority, which operates subways, buses, and commuter railroads as well as bridges and tunnels.

The proposal would generate enough cash to help cover a budget gap caused by a loss in fare revenue from lower ridership since the Covid-19 pandemic began in 2020, officials said.