STEP 1: Identify the question:
The question is asking us what would logically follow based on what is stated in the passage. Not much info, just going to jump right into the passage

STEP 2: Deconstruct the argument:
PBS sub by gov't b/c rev from T < Ops Cost
Gov: cut $ support to PBS

STEP 3: State the goal
The public bus system needs subsidies from state government b/c their revenue is not enough to cover its operating costs. But the governor is purposing to cut down on the financial support to the public bus system. What would logically follow after this? It could be what are the steps the public bus system going to take if the governer's plan is approved. It could also the reason behind the governer's proposal.

STEP 4: From wrong to right
A) If the government continues with its plan, the bus will have to stop operating.
=> true but not right
B) If the bus system does not find another way of raising money and the governor’s plan is approved, the bus system will have to either raise ticket prices or cut back on service.
=> best answer of all, this answer choice circles back to the premises provided in the argument
C) If the price of a bus ticket is raised, some people will no longer be able to afford to ride the bus.
=> an unsupported claim that's irrelevant
D) If the bus system can find a way to cut costs, it will be able to maintain current levels of service.
=> another claim
E) A group of investors is considering privatizing the subway system.
=> irrelevant, the passage is about the public bus system, not subway system

Answer: B

In my opinion, this is a poorly written, not a very GMAT like question, so you probably will find the answer unconvincing

A) If the government continues with its plan, the bus will have to stop operating.

This option assumes that the proposal is rejected

B) If the bus system does not find another way of raising money and the governor’s plan is approved, the bus system will have to either raise ticket prices or cut back on service.

This choice talks about what would happen if the plan is approved and does not take it for granted either of the end results (which is what we are expected to do)

C) If the price of a bus ticket is raised, some people will no longer be able to afford to ride the bus.

This option assumes that the proposal is rejected and the step after that

D) If the bus system can find a way to cut costs, it will be able to maintain current levels of service.

This option again assumes governor's plan is approved and then what the bus system should do

E) A group of investors is considering privatizing the subway system.

A very new fact that does not logically follow