Although the New Jersey legislature and Acting Governor Donald DiFrancesco approved legislation during 2001 to offer federal transit commuting tax benefits to state employees, the measure has gone unimplemented during Governor James McGreevey’s first 15 months in office.

Setting up the program is the NJ Dept. of Treasury’s job. Agencies that have sought to act on the law and offer the benefits to their workers have reportedly been told to wait for Treasury to set up the state wide-system. The governor needs to move the Treasury off the dime. Starting the program would be rare good news in this season of fiscal woe, and indeed, it would save the state money.

During legislative deliberations on the measure, the Treasury estimated that the state could save up to $367,000 annually in payroll taxes by offering the program to its workers. The legislation makes 76,000 employees of state agencies and public authorities eligible for the benefit (MTR #325).

The federal transit commuting tax benefit allows employees to pay for mass transit costs, up to $100 per month, with pre-tax income. The program is known in much of the region as TransitChek, and in CT as Deduct-a-Ride. Participants enjoy significant savings on mass transit and vanpool costs, but their employers must participate in the program. NYC government is the region’s largest public sector participant in the program, though some smaller governments, like Westchester County, offer TransitChek to their workforces as well.

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