The state budget, released last week, cuts aid to NJ Transit by $45.2 million despite the fact that NJ Transit ridership is booming. Since 1991, ridership has increased by 22%, and fiscal year 1998 marked the seventh consecutive year of ridership growth for the agency. In 1998, NJ Transit ridership reached 200 million riders, 3.5% higher than the prior year and greater than at any point in the agency's history.

State officials claim that the cut would be met by cost savings and increased farebox revenues from higher ridership.

The groups argued that because ridership is increasing, service levels should also rise. Static train and bus frequencies means deteriorating service quality for increasingly crowded riders. Bill Wright of the NJ Association of Rail Passengers noted that particularly in light of the increasing traffic congestion problem on NJ's roadways, the state should be looking to increase funding to provide more service on bus and rail lines.