NJ Transit Avoids Fare Hikes in 2010 Budget

NJ Transit has approved an operating budget and capital program for fiscal year 2010 that calls for no fare increase for the second year in a row, avoids major service cuts and funds the start of construction of the mass transit tunnel under the Hudson River.

The agency's Board of Directors approved a $1.79 billion operating budget and a $1.39 billion capital program for the fiscal year that started July 1.

“We have cut administrative costs to the lowest proportional level in NJ Transit history, enabling us to create a budget with no fare increase and no major service cuts,” said Executive Director Richard Sarles, in a press release. “While transit demand has grown, this constrained budget limits our new services to rail service to the Meadowlands sports complex and enhanced bus service in Bloomfield and Newark.”

Nearly half of the revenue in the operating budget comes from fares, with the balance from a combination of commercial revenues, state operating assistance, and state and federal reimbursements. It reflects a reduction in state operating assistance of $62 million to help the state balance its budget. Cost-cutting measures help offset this reduction, including administrative savings of $22.5 million through planned furloughs, wage freezes and labor contract savings, as well as reduced printing costs and savings through an audit of employee health care benefits.

The capital program includes $193 million to advance the mass transit tunnel project and will also support a number of projects either underway or under consideration, including the Meadowlands rail spur, the Hudson-Bergen Light Rail Line extension to 8th Street in Bayonne and the Passaic-Bergen Rail project.