NJ Transit's acting head said that service cuts and layoffs will not be used to close a $45 million hole in the agency's operating budget.



Appearing before a state Senate Budget Committee hearing on Tuesday, Dennis Martin, the agency's interim executive director, assured lawmakers that NJ Transit was not considering those measures to close the gap.

"There are no plans to layoff anyone (or) to reduce service," Martin said. "We are monitoring our receipts and reimbursements and looking at cost efficiencies. We do not have any plans to do what you described."

Commuter and transit advocates have warned that service cuts and layoffs were potential ways the agency could close the budget gap. Last year, fares were increased by 9 percent and service cuts were made to close a $56 million budget gap.

Gov. Chris Christie said in March that fares would not be increased in the fiscal year 2017 budget.



Martin said that potential budget savings were expected from health insurance concessions made by rail workers in their new contracts, and eight of 11 rail unions have ratified the agreement, he said. Those savings partially offset wage increases in the contracts, he said.



"[The contracts] had aggressive cost containment measures and (employee) co-pays," Martin told the committee. "Sometimes saving money doesn't mean cutting, it means doing things smarter."

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Martin cited a $4 million in savings reaped from changing operations at the Port Authority Bus terminal, which reduced commuter delays.



Martin didn't answer a question about whether he thought fares would increase in fiscal year 2018, but he said cost savings in fuel are among factors that will help close this year's gap.



About 50 percent of the operating budget comes from fares and Martin said the agency was also looking at ways to better market empty seats on trains to reverse commuters, and to increase advertising revenue on trains, buses and in stations.



Larry Higgs may be reached at lhiggs@njadvancemedia.com. Follow him on Twitter @commutinglarry. Find NJ.com on Facebook.

