BROOKLYN - The Metropolitan Transit Authority estimates a deficit of $400 million for 2010 which could cause more service cuts.

A state tax that was initially meant to help curb the deficit fell short by almost $350 million.

Many advocates say the agency could use federal stimulus money available under President Barack Obama?s 2010 budget.

The MTA said it is prepared to take necessary steps that will reduce the deficit and will have a clearer picture of potential changes to service after the state budget is finalized.