News reports of the release of the NJ DOT and NJ Transit 2004 capital programs to metropolitan planning organizations suggest that Governor McGreevey’s plan to issue $900 million in new transportation bonds, backed by future federal transportation aid, will avoid the need for major program cuts over the next two years. However, NJ Transit will continue the practice of sacrificing a large proportion of needed capital spending in order to pay for day-to-day operations, a bad practice that could spell trouble and higher costs for NJ’s bus and rail system down the road.

Before the bonding plan was hatched, New Jersey transportation commissioner Jack Lettiere had warned of a transportation austerity budget. While some planned road projects appear to have lengthened schedules, DOT officials said that had more to do with normal developments in the project pipeline than funding constraints. DOT and NJ Transit also appear to be eliminating 200 staff positions, mainly through attrition, though transit said they would not be positions affecting service. Lettiere told reporters that basic infrastructure, bridges and rail lines would get highest priority in the overall program. The Tri-State Transportation Campaign has not yet seen a copy of the draft plan, which will be sent to the state legislature after consideration by the metropolitan planning organizations.

The Star-Ledger reported that the NJ Transit capital budget would transfer $356 million to the agency’s operating budget. That practice has been sustained for several years, and transit chief George Warrington has warned it is no way to run a railroad. Systems that defer standard upkeep often see deteriorating operating conditions, and almost always incur higher future costs because the lack of regular maintenance work leads to a higher rate of equipment and infrastructure replacement.

The bonding plan has been attacked by Republicans in the state legislature, who indicate they may propose their own funding plan, and by NJ editorial writers. No Democrats have emerged as critics of the scheme, however, which suggests it may well be destined for approval in Trenton this spring.

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