OAKLAND, Calif. (KCBS)  -- Higher gas prices and a mounting deficit have AC Transit officials considering fare hikes many riders are not going to like. Regular adult fares could go from $1.75 to $2, and the cost of a youth pass could jump to $28 a month.

The agency is trying to fill a $20 million budget gap as Governor Schwarzenegger cuts state funding to control the state’s ballooning deficit. AC Transit will hold a public hearing on the fare increases at Oakland City Hall Wednesday at 4 p.m.