The Fund NJ Transit Coalition today condemned NJ Transit’s plan to raise fares by 15% system-wide.
The unwelcome announcement drew immediate criticism from riders, advocates, and policy groups such as Regional Plan Association, Clean Water Action, Environment New Jersey, Hudson County Complete Streets, Make the Road New Jersey, New Jersey Bike & Walk Coalition, New Jersey Future, New Jersey League of Conservation Voters, New Jersey Policy Perspective, New Jersey Urban Mayors Association, the Raritan Valley Rail Coalition, and Tri-State Transportation Campaign, frustrated by the state’s unwillingness to address the agency’s growing fiscal crisis.
It is unconscionable to ask riders to shoulder a 15% one-time fare increase, followed by a 3% annual fare increase before the state has a long term plan in place. The lack of action towards a better, dedicated funding mechanism for transit all but guaranteed that riders would get hit with a big, double-digit increase instead of smaller, easier-to-absorb increases over time.
Advocates highlighted the $300 million drop in NJ Transit’s state operating subsidy, which plummeted from a high of $457 million in FY20 down to $142 million in FY24. Despite the state’s emphasis on the increased annual subsidy from the Turnpike Authority, the ‘extra’ money was never used to make NJ Transit operating budget stable - it merely allowed the state to reduce its direct budget line for the agency while maintaining the status quo.
This continued deferral of critical investment in the biggest statewide public-transit system in the United States falls heaviest on the shoulders of those who can afford it least. Coalition members called on the Governor and State Legislature to do their part before asking riders to spend more money for the same, or in some cases declining, service. Specifically, Fund NJ Transit calls on state leaders to:
Identify and enact a source of recurring, dedicated operating funding in the FY25 budget
When a hike is necessary, reduce the burden for intra-state/local bus riders who are far more economically vulnerable
“Drastic fare hikes won’t solve NJ Transit’s structural financial problems, especially when the agency has never had a dedicated funding source,” said Alex Ambrose, Policy Analyst, New Jersey Policy Perspective. “Forcing riders to foot the bill and relying on farebox revenue to bridge the financial gap is not just inequitable, it’s bad policy. Policymakers chose corporations over New Jersey’s working families when they gave ultra-wealthy businesses like Amazon and Walmart a $1 billion tax cut. To prevent additional drastic fare hikes and service cuts, reinstating the Corporation Business Tax surcharge is the smart and practical way to fund NJ Transit. NJ Transit should not operate on the basis of revenue like a business; instead, it should be treated as a public good, and given the investments it needs to thrive.”
“Fare hikes, especially increases of this magnitude, should be the option of last resort, not the State’s opening salvo,” said Zoe Baldwin, NJ Director of Regional Plan Association. “Some of this structural deficit is inherited, but that’s no excuse to leave riders holding the bag. There are many ways to address NJ Transit’s looming fiscal cliff without resorting to such drastic measures, and we are incredibly disappointed that none of the other options were seriously explored before riders were saddled with this fare hike.”
“Governor Murphy made public commitments to significantly reducing climate emissions in the transportation sector and fix NJ Transit if it kills him. But to the contrary, he is raising rates without a known plan to improve service, will continue to raid Clean Energy Fund without knowing if he will prioritize capital investment in the electrification of transit buses and corresponding infrastructure, and he is moving full steam ahead on a $10+ billion turnpike expansion that could be better put to improving public transit thereby reducing traffic congestion and keeping local neighborhoods intact and with less air pollution with every breath,” stated Amy Goldsmith, NJ State Director, Clean Water Action. “Climate and environmental justice requires an aggressive commitment to transit affordability and service for all riders whether they ride the bus or the rails.”
“This decision to raise fares is going in exactly the wrong direction,” said Peter Kasabach, Executive Director of New Jersey Future. “At a time when we should be making it easier for people to get around the state using the public transit system, we are instead putting up yet another obstacle.”
“This is deja vu all over again – NJ Transit can’t balance its budget on the backs of straphangers. NJ Transit’s fiscal cliff is not going to be solved by jacking up fares on train and bus riders – this will only drive transit riders away and hurt straphangers who can’t afford hikes the most. The real solution is to provide ongoing dedicated funding to NJ Transit. This moment of crisis for NJ Transit demands that the Legislature and Gov. Murphy provide increased funding for NJ Transit in the FY25 budget to close the budget gap – not sock it to riders. We urge the NJ Transit Board, Governor Murphy and the Legislature to work together to roll back this proposed fare hike – and for straphangers to show up at public hearings to call for funding equity for NJ Transit,” said Doug O’Malley, Director of Environment New Jersey.
“On behalf of the Executive Committee and General Membership of the New Jersey Urban Mayors Association (NJUMA), it is with extreme displeasure that I lament NJ TRANSIT’s proposed 15-percent fare increase for this summer and the three-percent proposed for next summer,” said the Honorable Adrian O. Mapp, Mayor of the City of Plainfield and President and Chair of the New Jersey Urban Mayors Association (NJUMA). “Several of our member-communities – the City of East Orange, the City of Elizabeth, the City of Newark, and the City of Orange Township – have already had to contend with the unanticipated cancellation of the A&C and Coach USA O.N.E. bus lines on which scores of our residents have relied for years, and while NJ TRANSIT was, thankfully, able to quickly deploy emergency stabilization service along those routes, these proposed fare increases would be severely burdensome for riders who use them every day.”
“Here is the truth — it is simply inexcusable that NJ TRANSIT, the largest statewide provider of public transportation and the third-largest transit system in the United States, remains the only public-transit agency of its kind without a dedicated and recurring funding source. Even if the Gateway Program’s Hudson Tunnel Project is completed on schedule, residents of our NJUMA communities along the Raritan Valley rail line, including the Queen City of Plainfield, will not be able to fully avail themselves of expanded ‘one-seat-rides’ to and from New York Penn Station if NJ TRANSIT cannot acquire new rolling stock, augment its workforce, and keep fares stable. Residents of our NJUMA communities – people whose livelihoods depend on reliable service from NJ TRANSIT – will be disproportionately harmed by these proposed fare increases. I echo the plea by the Fund NJ TRANSIT Coalition for the Governor and Legislature to work together to ensure that a dedicated and recurring funding source for NJ TRANSIT is identified and included in the final state budget for Fiscal Year 2025.”
Isabel Moctezuma, Passaic resident and Make the Road New Jersey member said, “As rents skyrocket and the cost of everyday expenses like food continue to go up I don’t know how I will make ends meet. This is a tax on the working poor like me.”
“Without sustainable and reliable public investments, NJ Transit can’t plan, or invest, for the long term. Instead, the agency relies on fits, starts, and stops of appropriations from the state that is hashed out each year in the budget to supplement money it gets from fares. The problem is compounded because Trenton has for years relied on budget gimmicks to fund NJ Transit, including raids of the state’s clean energy fund,” said Ed Potosnak, Executive Director, New Jersey League of Conservation Voters. “Public transit in New Jersey should be more affordable, more reliable, and more on time and to make this a reality it needs more money and we suggest a dedicated funding mechanism. NJ Transit riders and families deserve it. We call on the Governor and Legislature to achieve long-term stability for NJ Transit. These long overdue investments will be an essential part of our environmental legacy because they reduce air pollution, traffic and improve public health.”
“This proposed fare hike, the largest in recent years, places an unfair financial burden on the riders and families for whom NJ Transit service is a lifeline. It is a clear indication that the current administration under Governor Murphy is failing to explore and implement alternative, sustainable funding strategies for our public transit system,” said Renae Reynolds, Executive Director at Tri-State Transportation Campaign. “Public transportation is a vital resource for the economic, social, and environmental well-being of our communities. Increasing fares, especially by such a significant margin, not only disproportionately impacts low-income riders but also undermines our efforts to combat climate change. Affordable public transit is essential in reducing our reliance on private vehicles, thereby decreasing greenhouse gas emissions and improving air quality.”
“A majority of Hudson County commuters do not commute by car, with many relying on NJ Transit for getting to work, school, and day-to-day errands. This fare increase will do little to cover the nearly $1 billion shortfall facing NJ Transit and it will harm low-income riders in our overburdened communities. Moreover, any reduction of service would push people away and increase reliance on cars, increase congestion in our densely populated municipalities, and increase pollution and asthma rates. We need a feasible long-term plan to fund a healthy NJ Transit, increase service to meet and incentivize growing demand statewide, and immediately offer fare cards with subsidies for frequent and low income riders. In Hudson County, each time NJ Transit has added more buses, ridership has grown in response. There is clear demand for more and better transit service,” said Talya Schwartz, Vice President of Hudson County Complete Streets.
