A tidal wave of change could soon wash though Toronto's transit system after a controversial budget proposal recommended reducing the frequency of service, cutting hundreds of jobs and raising the price of tokens by 10 cents.

The sweeping changes were outlined in a report released on Tuesday intended to address the city's request that the all departments cut their budgets by 10 per cent.

The TTC currently has a $1.4 billion operating budget, meaning any cuts could be significant in size and scope.

The report, released by TTC general manager Gary Webster, suggests cutting as many as 422 positions and reviewing 500 others.

TTC vice-chair Peter Milczyn told CP24 on Tuesday that there would be some impact on service levels from the cuts. He said it is likely buses would run less frequently on some lines.

Most of the reductions are expected to come through attrition and leaving current vacancies unfilled. Milczyn said some layoffs were likely.

In a leaked letter to employees, Webster said voluntary buyout packages were being prepared for non-unionized employees.

The TTC's budget proposal also recommends a 10-cent increase that would apply to tokens. Mayor Rob Ford had announced, and then abandoned, a similar plan earlier this year.

TTC officials have also recommended delaying the delivery of 15 of some 204 new Bombardier streetcars currently being built and deferring 134 buses set for delivery between 2013 and 2016.

They have also proposed buying 10 fewer new Toronto Rocket subway trains than currently planned.

Some 1,800 dialysis patients currently permitted to use the TTC's Wheel-Trans service would become ineligible under the proposal.

The Commission will consider the recommendations at a public meeting on Friday.

On Monday, city manager Joe Pennachetti released his own cut-cutting recommendations based on a sweeping core service review conducted by consulting firm KPMG.

Pennachetti's recommendations included asking the TTC to back down from recent improvements it had made to service levels.

He also suggesting killing or charging an extra fare for overnight bus service along major thoroughfares.