The Fund NJ Transit Coalition is excited that Governor Murphy has proposed a fee on corporations with net profits over $10 million. If enacted, this would finally establish a dedicated and recurring source of funding for NJ Transit. However, while we’re heartened to see this financial support for our state’s public transit system, we are disappointed that fare hikes remain on the table. Across-the-board 15% fare increases this summer and 3% annual increases will disproportionately hurt essential workers and low-income New Jerseyans.
Today’s address, while a positive first step, fails to shift the burden off of everyday commuters. We call on legislative leadership to implement the Corporate Transit Fee recurring, dedicated operating funding, reduce the fare hike, and lift the cost burden off of New Jerseyans in order to create a thriving future for both NJ Transit and its commuters.
“Today’s announcement is kind of a Catch-22,” said Zoe Baldwin, NJ Director for Regional Plan Association. “NJ Transit is finally getting the dedicated, recurring source of funding it desperately needs, but riders are still left holding the bag as the state continues to advance unnecessarily high fare increases. 15% is a lot for anyone to absorb all at once, especially for local bus riders. Governor Murphy’s announcement is a step in the right direction, but the state needs to do better for the tens of thousands of people who rely on transit every day.“
“It’s hard to overstate how big of a deal this is for transit riders and the state as a whole. The governor’s proposal would finally provide stable, dedicated funding to an agency that’s never had it, setting a strong foundation to protect NJ Transit now and in the future,” said Alex Ambrose, Policy Analyst at New Jersey Policy Perspective (NJPP) and author of a report on the need for a dedicated source of funding for NJ Transit. “This is exactly the type of thinking needed to get NJ Transit back on track, and it’s long past time that big corporations pay for the infrastructure that helps them generate their record-breaking profits. At the same time, we can’t forget that riders are staring down a potential double-digit fare hike, and the agency is still raiding its capital budget, so there’s a strong argument for bringing back the full corporate surcharge to spare commuters from shouldering that burden.”
“The commitment of an anticipated $800 million to NJ Transit via a fee on our wealthiest corporations is a budget breakthrough for New Jersey Transit. Public transportation sits at the heart of New Jersey’s walkable downtowns and neighborhoods, and our ability to get to work, school, and recreation, without always having to drive,” said Chris Sturm, Policy Director - Land Use at New Jersey Future.
“Today’s announcement gives hope to residents who need to know if they can count on transit to get to work, school, and recreation. It encourages employers to invest in transit areas where their staff can get to work on time, even without a car. But that potential depends on dedicated funding for NJ Transit, so the agency can completely fill its budget gap and, so it no longer needs to poach its capital budget and clean energy funds in order to maintain operations. We call on state leaders to follow up with a full package of dedicated, dependable resources needed to deliver safe, reliable bus and train services.
We also urge state leaders to reconsider fare increases, which will hit low-income riders especially hard. Instead, let’s explore flat fares and even strategic fare holidays that grow revenues by increasing ridership – without burdening cash-strapped riders.”
“We applaud Governor Murphy’s budget for investing in NJ Transit, but this proposed funding alone won’t solve long-term challenges,” said Jaqi Cohen, Director of Climate and Equity Policy at Tri-State Transportation Campaign. “To thrive, NJ Transit needs sustained support that takes a 15% fare hike off the table, not just a one-time boost. The proposed fare hike, essentially a tax on the working class, will disproportionately burden those who rely on public transit the most. It’s time for a comprehensive funding strategy to secure NJ Transit’s future and alleviate the financial strain on everyday commuters.”
“NJ Transit is in dire straights yet essential to getting people to work, growing the economy, fighting climate change, and stopping the poisoning of our lungs. The governor’s announcement he’s now supportive of restoring the corporate millionaire’s tax to better fund transit is very important but much more needs to be done including ending the raids on transit capital and clean energy funds, shelving Transit fare hikes, and diverting funds from the damaging Turnpike expansion to Transit,” said Amy Goldsmith, NJ State Director, Clean Water Action.
“On behalf of the Executive Committee and General Membership of the New Jersey Urban Mayors Association (NJUMA), I commend Governor Murphy for his decision to include in his proposed budget for Fiscal Year 2025 a significant amount of state funding for NJ TRANSIT,” said the Honorable Adrian O. Mapp, Mayor of the City of Plainfield and President and Chair of the New Jersey Urban Mayors Association (NJUMA).
“I want to reiterate that this funding must be dedicated, recurring, and in place of, not accompanied by, the proposed 15- and three-percent fare increases. It is unreasonable to compel people who already struggle to make ends meet and for whom NJ TRANSIT may represent their only means of getting to work on time to reach deeper into their own pockets for their bus and train tickets.
If the funding proposed by Governor Murphy this afternoon is permitted to be used for any other purpose than supporting NJ TRANSIT, the largest statewide provider of public transportation and the third-largest transit system in the United States, the residents of our NJUMA communities – people whose livelihoods depend on reliable service from NJ TRANSIT – will remain disproportionately vulnerable to a drastic decrease in their qualities of life.
I echo the call by the Fund NJ TRANSIT Coalition for the Governor and Legislature to continue working 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.”
“We shouldn’t wait for NJ Transit to barrel over the fiscal cliff to provide the dedicated funding the agency – and riders – so desperately need. Governor Murphy has stepped up with his FY25 budget proposal to take the first step to provide dedicated funding through a modified corporate transit fee. We thank Gov. Murphy for this action, and Senate President Scutari for championing dedicated funding. NJ Transit’s fiscal state is dire enough that we need to maintain FY24 state funding and increased funding from the NJ Turnpike Authority to provide equitable funding for NJ Transit to stop this year’s fare hikes, future stealth annual fare hikes and FlexPass abolishment and end a legacy of budget raids,” said Doug O’Malley, Director of Environment New Jersey. “This budget proposal is avoiding the Trenton tradition to wait until the 11th hour to try to fix a funding crisis. But ending the fiscal cliff still leaves NJ Transit with the same legacy of an underfunded fleet of trains and buses, and perpetual raids on capital and clean energy funds. This is the beginning of the path to achieve dedicated funding, but we will need Gov. Murphy and the Legislature to work closely in the next four months to pass dedicated funding and stop the fare hikes for NJ Transit riders and end the legacy of raids on NJ Transit’s capital funding.”
“We applaud Governor Murphy for living up to his commitment to provide reliable, affordable, and clean public transportation in New Jersey. Dedicated funding will be transformational for NJ Transit, instead of relying on endless budget gimmicks that take place in Trenton each year,” said Ed Potosnak, Executive Director, New Jersey LCV. “This is a time to celebrate. Riders and the environment deserve clean public transportation, which will not only keep us running, but improve air quality and public health. We’re thrilled to see transit moving in the right direction. However, more must still be done to head off an unwise proposed fare increase that threatens to drive cars back onto the roads and increase congestion even as the agency is trying to recover from the impact of the COVID-19 pandemic.”
