New Jersey Transit announced plans last Wednesday for its first fare hike in ten years. The agency, whose fiscal problems have been becoming increasingly apparent during the past year, has proposed a 10% fare increase on its commuter rail, bus and Newark subway lines that would take effect in April. The plan would also impose annual follow-on fare increases indexed to inflation for each of the next five years. No public hearings or formal input would be triggered by the indexed fare hikes. 

New Jersey does not index any other public fee or payment to inflation. New Jersey's state gas tax is among the lowest in the country.

NJ Transit's proposal comes just one month before Governor-elect Jim McGreevey takes office. McGreevey would not comment to reporters, but has likely signed off on its contents and agreed to its timing in order to deal with a troublesome revenue issue without taking the brunt of public blame. 

The public hearing schedule for the fare hike seems designed to supress visibility and dissent. Hearings will take place January 2, the day after a holiday weekend, well before McGreevey takes office.

New Jersey commuters, who already complained of crowded and inadequate service before the events of September 11 added many more riders to the NJ Transit system, currently contribute 43% of NJ Transit operating expenses. The new fare package is a revenue measure only. No service enhancements are planned, and some cuts may in fact be imposed. Many riders told newspapers they oppose a fare hike that is not accompanied by service improvements. 

In addition to the overall percentage fare increased and the later "indexed" hikes, NJ Transit proposes the following increases to specific fares:

• Elimination of weekday round-trip "excursion" off-peak fares.
• Hiking one way tickets between NY and Newark Penn Stations from $2.50 to $3.30.
• Hiking the on-board ticket purchase premium from $3 to $5. 
• Trimming senior and disabled discounts.

 

 
 
 

After NJ Transit's announcement, the Tri-State Campaign issued a statement of opposition to the fare hike. The Campaign said the hike was unfair because it asked more from transit riders without offering any relief from crowding or other service problems. The statement also said any fare increase should be part of a more comprehensive revenue package to stabilize the fiscal picture for all modes of transportation. A piecemeal approach that hits transit riders the hardest will work against the goals of containing sprawl and reducing roadway congestion.

Even with the proposed fare hike, NJ Transit will need other revenue measures to keep buses and trains rolling and system expansion plans on track. Martin Robins, who authored a Rutgers University report on Transit's structural deficit that was released last month (MTR 343), told the Star-Ledger that a fare hike alone cannot resolve NJ Transit's budget issues. "It's helpful, but it does not solve the problem by any stretch of the imagination," he said. 

NJ Transit told reporters that the proposed fare increases would raise $44 million of a $200 million deficit expected for FY03. Although recent events have led to higher ridership and a need for increased security, NJ Transit's 2003 budget deficit was projected at $83 million even before Sept. NJ Transit has recently used capital funding for operations.

NJ Transit's public hearings on the fare proposal are scheduled for 8 p.m. on January 2 at six locations: the auditorium of the Atlantic County Office Building in Atlantic City, the council room of Freehold Borough Hall in Freehold, the multipurpose room at the Department of Transportation's headquarters in Trenton, the board room at the New Jersey Transit headquarters in Newark, Paramus High School in Paramus, and the lobby of the Walter Rand Transportation Center Terminal in Camden. NJ Transit is accepting written testimony via the internet at transitfares@njtransit.com. Call 973-491-7022 for info on the hearings.
 
 

NJ Transit Hints at Budget Woes
(July 31, 2000)

NJ Transit Budge Rises, But Long-Term Deficits Still Loom (Feb. 26, 2001)

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