Washington’s ferry system faces a major funding shortfall despite a 62 percent increase in fares since 2001, according to a new study.

Released just as the state legislature returns to session, the study says operations eat up most of the system’s budget, leaving little for infrastructure improvements like a new terminal on Bainbridge Island. Fares would need to rise 5 to 6 percent a year just to stay even — more than some earlier projections.

The system needs to do a better job forecasting passenger demand and should charge more during peak times to encourage travel during less-busy periods, the study says.