Blame Albany. Charging students to ride to school and more service cuts will surely be back on the table.

The already recession-battered MTA is looking at a $400 million budget gap this year - even with the sweeping service cuts it plans to make this summer, the agency said Wednesday.

The Metropolitan Transportation Authority learned from the state budget office that revenue from a new payroll tax created as part of the agency's bailout has come up short, again, the authority said.

Since the spring, the projected revenue from the new tax has dropped by $700 million -- from $4.17 billion for 2009, 2010 and 2011 to $3.47 billion, officials said.