By: Richard L. Smith
Since 2015, NJ TRANSIT has maintained fare stability and enhanced services, adding more routes and emergency services officials said in a statement today.
The agency has significantly improved the customer experience through initiatives like a revamped mobile app, advanced fare payment technologies, and the graduation of over 2,300 new bus operators.
Noteworthy are the enhancements for Access Link paratransit service customers, including the launch of online services and a partnership with Uber and Lyft.
Despite these strides, the pandemic has impacted ridership and farebox revenue, leading to a nearly $2 billion shortfall. While federal COVID relief funding sustained full-service levels, this aid is expected to run out in Fiscal Year 2025.
Coupled with a pre-existing structural funding deficit, operational costs, wage increases, and rising healthcare costs, NJ TRANSIT faces significant financial challenges.
In response to a preliminary estimate of a $119 million budget deficit for FY25, NJ TRANSIT has identified $44 million in cost reductions and $52 million in revenue enhancements.
However, these measures alone are insufficient to bridge the budget gap.
Consequently, to cover the remaining $106.6 million deficit and maintain service levels, NJ TRANSIT is proposing a systemwide fare adjustment of 15%, effective July 1, 2024.
This fare adjustment, combined with the agency's internal savings and revenue enhancements, aims to ensure a fully funded operating budget for FY25.