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NJ Transit is the third largest bus and rail provider in the United States.
NJ Transit has 253 bus lines, 12 rail lines, and 3 light rail lines. It serves approximately 270 million passenger trips annually.
New Jersey Transit is proposing to raise fares by 15%, the first increase in nine years, followed by 3% annual fare increases indefinitely, according to a plan presented by NJ Transit officials Wednesday. We plan to implement the following.
The proposal would maintain current levels of service into the next fiscal year, which begins in July.
State aid is expected to remain unchanged this year, totaling $652.1 million. In addition, agency officials said there were $44 million in internal cost reductions and $52 million in revenue improvements.
New Jersey Department of Transportation officials estimate the fare increase could generate about $106.6 million in additional revenue.
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The Murphy administration has known for at least two years that New Jersey Transit was on the verge of a fiscal cliff. That prediction has only grown in size and scope over that time.
But state aid for the current budget cycle is less than the $668.6 million in fiscal year 2020, and no plan has been developed by Murphy and the Legislature to make up for the loss of farebox revenue, meaning that going forward, riders will have to pay There is a high possibility that you will be forced to bear the burden. This burden will be alleviated by raising fares.
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“Today’s fare increases are a direct result of New Jersey’s continued failure to address well-known issues, and New Jersey Transit users deserve better.” said Zoe Baldwin, New Jersey director of the Regional Planning Association, a nonprofit advocacy and research organization. , Housing and Sustainability in the Tri-State Region.
“While we believe that small, predictable fare increases are reasonable to offset rising costs, large, one-off increases like the one announced today would be a step in the face of already rising costs of living,” the association said. It will cause unnecessary suffering to families suffering from this,” Baldwin said.
“While there are many ways to address the NJ Transit Authority’s impending financial cliff without resorting to such drastic measures, it is important to consider all other options before riders suffer from this latest fare increase. “I am very disappointed that it was not seriously considered,” she said.
Looming annual operating deficit
As of March 2022, the fiscal cliff for fiscal year 2026 was estimated at $549.3 million, and by July 2022, that estimate had increased to $842.6 million. Then, less than a year later, his schedule was moved up as coronavirus relief funds ran out sooner than expected and farebox revenue was delayed.
In April 2023, the fiscal cliff was projected to start at $119 million in fiscal year 2025. It is expected to expand to $917.8 million next year.
Last April, New Jersey Transit Authority Board Chair Diane Gutierrez-Scassetti announced, ahead of the governor’s February 2024 budget address, a “restructuring plan” to determine where the agency could cut costs. announced that it would begin an analysis.
No report has been created. Kevin Corbett, president and CEO of the New Jersey Department of Transportation, said in December that another state agency was in charge of hiring a consultant to complete the analysis.
At the time, a spokesperson for the state Department of Transportation did not answer numerous questions about why the consultant was hired eight months after the reorganization announcement, declining to comment on the consultant, citing “an ongoing procurement.” .