From Janine Bauer (12-12-01):

Statement Opposing NJTransit Proposed Fare Hikes

The Tri-State Transportation Campaign opposes the proposed fare hikes for NJTransit bus, rail and subway customers. NJTransit has proposed an immediate 10% fare hike across the board, with at least another 10% fare hike to follow, indexed to inflation increases, without further public hearings.

NJTransit certainly needs revenue. But balancing its revenue needs on the backs of its loyal and growing customer base is inappropriate with no guarantee of increased and improved service on crowded bus and rail lines, free transfers between buses and trains, improved feeder services to train stations, and a regional "smart" fare card integrated with PATH and Metrocard/NYC subways and buses. NJTransit also must demonstrate first that it has maximized its ability to collect user fees, private capital, and other revenue enhancements in addition to rider contributions.

Riders already contribute 43% of all NJTransit operating expenses through the farebox. States that recognize transit usage as a highway-congestion and smart-growth solution have reduced the effective amounts that riders contribute at the farebox as a portion of overall operating expenses. Maryland just lowered its statutory contribution from riders to 40%.

NJTransit's operating expense budget shortfall for FYO3 is $169 million. The shortfall grows in subsequent years, for example to more than $184 million in FYO5. NJTransit hopes to close its operating expense budget shortfall for FY03 by using (i) $44 million in additional rider fares; plus (ii) $50 million to be refunded from the NJ State Office of Management and Budget (OMB) - which is entirely speculative and doubtful, given New Jersey's overall revenue outlook; plus (iii) $53.6 million in program cutbacks, service cutbacks, delayed project openings and other reductions, all of which will hurt riders and growth in NJTransit usage.

In fact NJTransit is also proposing over $11 million in bus and rail service cutbacks that will affect 25-30 lines and 2 million riders, throughout the state.

Any increase in rider fares has to be part of a global solution to the problem of the lack of a stable source of funding for all modes - highway, transit, rail freight, ferry, bicycles and pedestrians. Any piecemeal "solution" that raises revenue only from transit riders and not from other segments of the transportation industry and from the motoring public, via measures such as increased gasoline and diesel fuel taxes, parking fees and shipping taxes, is a deterrent to smart growth and a guarantee of worsening highway congestion. Fare hikes should be part of a broad-based proposal to address significant operating and capital shortfalls. The proposal should include the shift of $236 million back from NJTransit operating to capital funding, as well as a gas tax hike. A ten percent gas tax increase would raise about $500 million annually and still keep NJ in the average range of state gas taxes in the country.

December 12, 2001