Before breaking for summer vacation in late June, the New Jersey Senate unanimously approved Assembly bill A190 making 76,000 employees of state agencies and NJ public authorities, commissions and boards eligible for federal pre-tax transit benefits. The New Jersey Assembly approved the bill in late March (MTR #311). Acting Governor DiFrancesco has given no indication that he opposes the bill.

NJ taxpayers, employees, and citizens stand to gain from the bill’s approval. The NJ Dept. of Treasury estimates the state could save up to $367,000 annually in federal payroll taxes, a figure that will increase when the federal benefit cap increases from $65 to $100 per month in 2002. State workers stand to save significantly on transit commuting and vanpool costs. The region’s Congressional representatives are backing a bill that would raise the cap to $175 to match the existing federal parking tax benefit (MTR #262).

Acting Governor DiFrancesco should sign the bill and direct the Treasurer and heads of state authorities to offer the benefit to employees. Expanding the pro-transit program should be adopted as a pledge by gubernatorial candidates as well.

NJ Legislature Courts TransitChek - March 24, 2000

NJ Assembly Gives Unanimous Approval to Transit Benefit Bill  - April 2, 2001

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