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CBS 2's Mike Parker, Kristyn Hartman and Katie McCall, WBBM 780's Bob Roberts, and the Associated Press contributed to this report.
CHICAGO (CBS) ― The CTA has agreed to a deal that would temporarily avert the "doomsday" plan of fare hikes and service cuts.

The state is offering the Chicago Transit Authority a short-term financial bailout that would postpone service cuts and fare increases.

As hundreds of thousands of CTA riders waited for "doomsday," transit officials met behind closed doors Wednesday morning to hear Governor Rod Blagojevich's offer. He made it; they took it.

"CTA has decided to recommend to RTA that they accept the proposal," said CTA Board Chairwoman Carole Brown.

"This money is important because it will provide money for the CTA and the RTA to do what they need to do to keep things operating and running," Blagojevich said.

The bailout would accelerate the payout of the remaining 2007 subsidy; CTA would get a sudden infusion of $24 million. It would allow the CTA to operate fully until Nov. 4, 2007.

"Our number one priority is our riders," said CTA chief Ron Huberman. "We were terribly worried about how people would get around."

If the RTA board, the agency that oversees the CTA, OK's the deal Friday morning, "doomsday" won't happen on Sunday. There will be no fare hikes, no layoffs, no route cancellations.

"I was on the bus the other day and I was talking to a high school student…" Huberman said. "He now has to walk through a gang territory to get to his bus once these cuts are implemented."

Blagojevich's plan calls for providing enough money to stave off the "doomsday" plan until state legislators can act on something permanent. The CTA has said it needs a total of $110 million from the state. The governor now says he will go to work with the state legislature to come up with a long-term solution to the CTA's money woes.

Brown told CBS 2's Mike Parker that RTA attorneys were reviewing the plan to determine whether it passed legal muster. If it does, the RTA was expected to accept it.

If the plan falls through, the CTA will suspend 39 bus routes and raise fares by up to $1, effective this coming Sunday.

CTA officials said they have already spent $3 million reprogramming equipment in anticipation of enacting the "doomsday" plan.

While the CTA said a funding band-aid might delay the doomsday scenario, but the also said they need to focus on long term cash flow.

Daily CTA commuter Miles Hill explained what is at stake for him.

"I'm seriously concerned about the cost of using it going up, and about availability," Hill said. "I think that the governor and legislation and CTA authorities should be working for some type of long-term plan, because a band-aid is not going to help."

Other riders agreed that they are looking forward to more than a stop-gap measure.

"It solves the problem for a very short time and then we're back to the cycle," said commuter Peter Zelchenko. "It turns us into permanent political pawns."

"You never really know, they never seem to have enough money to go around," sid CTA rider Kyle Lajeunesse.

"I just think it's a real shame that the governor and other leaders can't step up to the plate. The working people of Chicago need them to fully fund public transit," said rider Julie Patterson.

"It's really not worth it to do a stop gap measure and pretend like anything's been solved," said CTA rider Edward Hirsch. "I mean if downstate doesn't wanna pay for it may as well start sucking it up now."

"If they charge us now or if they charge us later, it's still going to be an increase right?" said Natalie Williams.

On Tuesday, Huberman said he still hopes for a permanent solution – the full $110 million.

"Certainly a partial solution would buy some time but what we're seeking from Springfield and what we've always sought is not another one-time fix," Huberman said.

"I'm determined to keep working to find a solution that provides the long-term help to keep mass transit up and running in the Chicagoland area that does not raise taxes on people," Blagojevich said.

But skeptical riders say whether it's now or later, they still have a date with doomsday.

"I think what's the point you're postponing the inevitable. We're going to be paying the $3, whether it be Monday or a month from now," said CTA rider Kimberly Scott.

In addition to the $110 million, the CTA is also asking the state for a longer-term funding mechanism. The agency has been asking for years that the state change the formula for transit funding, saying the 24-year-old current formula shortchanges the CTA.

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