Mobilizing the Region
Issue 279July 31, 2000



NJ Transit Head Hints At Budget Woes


Last week, NJ Transit Executive Director Jeff Warsh told the Courier-News that higher operating expenses in the upcoming year may force the agency to look at an increase in transit fares (June 23rd). Although the overall budget allotted to NJ Transit in the 2000-2001 FY budget passed earlier this month represents a small nominal increase over last year , the agency faces at least $61 million in added operating costs this year.

Warsh estimated that fuel costs would increase by at least $7 million. The opening of the Hudson-Bergen light rail line added roughly $24 million to NJTransit's yearly expenses. And labor agreements require pay increases this year totaling $30 million. The Courier-News reported the agency shaved $45 million in labor costs - mainly through attrition in administration and management - to accommodate a shortfall last year.

A NJTransit spokesperson assured the Campaign that there are no active plans to hike fares, adding that the agency revisits the issue every year upon receiving the Governor's budget. Bus and train fares on NJ Transit have remained steady for a decade, a record of which both the agency and the Governor are proud. If the agency does begin to seriously consider an increase, it should simultaneously prepare to offer the public increases in service and benefits like free bus-train transfers or a NJTransit-PATH fare card.

In the Star-Ledger the week before, Warsh was quoted agreeing with Representative Rodney Frelinghuysen (R-11th District) that the steady stream of Federal transportation funds for big New Jersey transit projects could be in jeopardy after 2000 "in a post-Lautenberg era."



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