NJ Transit considering fare hike, service cuts

TRENTON – Commuters beware: New Jersey Transit is considering a fare hike and service cuts.

Documents supporting Gov. Chris Christie's budget plan say NJ Transit "is currently evaluating a range of savings and revenue-generating options that may include the first fare adjustment since May of 2010."

There's no detail yet available on the size or timing of a potential fare increase. In 2010, rail and commuter bus fares increased by 25 percent, while light-rail and local bus fares went up 10 percent.

"We are developing options for the governor's consideration to help us close a budget gap and will be putting everything on the table, including fare and service adjustments," said NJ Transit spokesman William Smith. "Right now we are working with the state budget numbers as we develop and finalize our own operating plan for the fiscal year."

Budget documents say the transit agency needs additional funds to meet its operating needs and specifically cite increasing premiums for employee health plans as one of those costs.

Smith said the size of the budget gap has not yet been identified.

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It's unclear if the fare hike would be considered as part of the solution for refinancing the Transportation Trust Fund, the state's pool of money that funds road and rail projects but is nearly out of cash. The TTF supports around 40 percent of NJ Transit's $1.2 billion capital program.

The two budgets are interconnected, said Janna Chernetz, senior New Jersey policy analyst for the Tri-State Transportation Campaign, who said $1.6 billion in capital funds have been shifted to the operating budget over four years.

"Raising fares on transit riders, while avoiding a gas tax increase, is an inequitable and insufficient transportation funding approach," Chernetz said. "While taking transit might be a choice for some, many others have no choice. Fare increases place a disproportionate burden on transit riders who are disabled, seniors, or who have limited incomes.

Fares paid by bus, train and light-rail users currently account for about 46 percent of NJ Transit's operating budget, almost $929 million toward a $2.019 billion budget.

Another 46 percent of the operating budget is funded from reimbursements from state and federal programs. Nearly 6 percent comes from commercial revenues, such as advertising. A state subsidy covers 2 percent.

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That subsidy is being lowered by $7.1 million in fiscal 2016, according to the budget documents, to $33.1 million from $40.3 million this year. It was $35.1 million in 2014.

The state budget's transit subsidy peaked at $348 million in 2009. It was substantially lowered in Christie's term by shifting money from the New Jersey Turnpike Authority to NJ Transit. That transfer is scheduled to amount to $295 million again next year.

The Christie administration also plans to use $62.1 million from the Clean Energy Fund, which is intended to promote renewable energy and energy efficiency initatives for residential, commercial and municipal customers, to pay for NJ Transit's utility costs. That's up from $32.9 million this year and $23.3 million in 2014.

"The Christie administration is destroying one best transit systems in the country," said Jeff Tittel, New Jersey director for the Sierra Club, who said fare hikes lead more people to drive cars, creating more traffic and air pollution.

Michael Symons: (609) 984-4336; msymons@app.com