The good news is that this program continues the steady expansion of New Jersey's transit system. The more difficult news is that ridership and demand for new services continue to grow rapidly, facing NJ Transit with a major capital and operating fund deficit in the next few years even without the construction of many of the projects under discussion in the state today.

From 1992 to 2000, NJ Transit's commuter trains experienced 38% ridership growth. Recent years have seen growth as high as 6% per year. Some aspects of the current capital plan will alleviate crowding: Transit is scheduled to put 200 new cars into service in 2002 and 2003. However, about half of the seating capacity in the new cars will replace retiring equipment.

Last year, NJ Transit projected a $2.2 billion 2001-2005 combined operating and capital budget deficit. This year's capital budget increase does little to change this long term outlook. The health of NJ Transit's core rail and bus system will require a major infusion of funding at some point in the next few years. Transit funding may become the central issue in reauthorizing the state's Transportation Trust Fund in 2004. Proponents of transit system expansion beyond the light rail projects in the works now would have to come up with funding over and above the $2.2 billion.

In budget documents submitted to the state, NJTransit says it needs $120 million more in operating money to continue operating current levels of service in FY2002. Before leaving for Washington, Gov. Whitman recommended increasing state funds for the transit agency by $74 million, over last year's $209 million.

Apparently NJTransit intends to get the remainder from the Transportation Trust Fund by diverting $46 million of capital funds for operating expenses. Transfers of this sort were a source of controversy in last year's Trust Fund negotiations. However, increasing ridership, state policy keeping fares flat and inadequate state operating appropriations have increasingly forced Transit to resort to such moves.

Most of the increase is justified by NJTransit for increased operating costs for the Hudson Bergen light rail line and "Access Link" paratransit service. Other costs have increased as well, including payments to Amtrak, marketing new services, labor, benefits, damage claims and fuel. $13.5 million of the proposed increase would boost service on crowded bus and rail lines.

FY 2002 operating and capital budgets will go before the legislature and require approval by July 1, 2001.