NYC Transit's budget surplus stood at $61.8 million at the end of July, slightly above last year's in-the-black mark at the same time. Transit finished 1997 with revenues $188 million over expectations.

The good budget news is fueling demand for more bus and subway service from jam-packed riders and transit advocates. Ridership figures released by transit officials this week showed that the bus and subway system had 564,000 more riders each weekday this July than in July, 1997. The increase puts the system on pace to add 1 million per day between July, 1997 and July, 1999.

Transit service and crowding issues could figure in this fall's New York elections. Democratic nominee for Governor Peter Vallone this week for NYC Transit to add trains and cleaning crews. Governor Pataki's staff answered by pointing to the Governor's central role in the fare policies that have spurred the ridership increase, and reiterated that the administration would try to keep "investing in the system."

The Daily News issued several editorials calling for transit more service in the past week, a sign that the issue could heat up considerably in coming weeks and months. The paper has championed transit rider needs in the past.