In January, New Jersey Transit announced its intention to raise bus and rail fares 13% to 15% while keeping service at current levels. This will be the first fare increase for NJ Transit riders in 10 years.
NJ Transit claims that Covid-19 related farebox revenue loss (ridership is approximately 80% of pre-Covid-19 levels) totals nearly $2 billion. The agency claims the fare hike will cover an expected budget gap of $106.6 million in fiscal year 2025, which begins on July 1.
NJ Transit also estimates they will need an annual infusion of $200 million for the next decade to meet the governor’s climate goal to gradually replace the agency’s 2,400 diesel buses with electric buses. This additional funding is needed for preliminary engineering work to install charging equipment at 17 garages as well as the actual installation of charging infrastructure at those garages.
To date, the governor has not proposed any funding for that purpose, and it is expected that NJ Transit will not be able to meet its climate goals as a result.
Public comment on these hearing proposals was accepted at eight locations throughout the state during the week of March 4 to March 8.
The Sierra Club has been advocating for the legislature and governor to establish a dedicated source of funding to cover NJ Transit’s operating expense deficit. The governor has rejected calls to reinstate the so-called millionaire’s tax and dedicate those funds to NJ Transit. There are other options for generating funding that include a real estate transfer tax, like the one in place in the NY metropolitan area, or receiving a portion of New York’s proposed congestion pricing tax on vehicles entering the Manhattan Central Business District.