NJ Transportation Legislative Organizational Letter, Spring 2024

May 6, 2024

Dear Senate President Scutari, Assembly Speaker Coughlin, and Members of the NJ Legislature:

The undersigned 34 labor, social justice, transportation, environmental and community organizations write to urge you to: 1) halt the 15% NJ Transit (NJT) fare hike; 2) repurpose funds designated for the unneeded and unwanted expansion of the NJ Turnpike to replace the revenue that would be generated by the fare increase; 3) support and expand Gov. Murphy’s FY25 budget proposal for a corporate transit fee (CTF) to provide $800 million in dedicated funding for mass transit to avoid NJT’s upcoming fiscal cliff, which should include a full restoration of the Corporate Business Tax surcharge; and 4) end the raids on NJT’s capital budget and dedicate the Clean Energy Fund transfer to bus electrification to ensure that NJT can make desperately needed operational and infrastructure improvements.

NJT, the lifeblood of our State, is currently in crisis. This year’s operating deficit pales in comparison with next year’s fiscal cliff; NJT faces a $700 million to $1 billion deficit.  The Governor’s CTF proposal, if adopted, would avoid a transportation disaster in FY26 where there otherwise would be unprecedented levels of service cuts and more fare hikes, leading to a death spiral for the Agency.

But the Governor has also unfortunately approved a 15% fare hike and annual 3% increases thereafter that are anything but fair. Riders are being asked to pay more when they are receiving less. The burden will disproportionately fall on middle- and low-income riders, who depend on NJT. The entire State will be harmed if riders stop using NJT, get back in their cars and increase traffic, carbon emissions and other pollutants in the State. Indeed, cities such as Boston, Kansas City and Washington D.C. have eliminated bus fares and provided free public transit for economic, environmental and equity reasons.  NJT should be moving towards this model, not hiking fares.

There is a simple and sensible way to avoid the fare hike that will not cost New Jersey taxpayers a dime. The Murphy Administration is aggressively pushing ahead with the $10.7 billion Turnpike Extension expansion project, which will be an economic, health, and environmental disaster.  Despite its exorbitant cost at more than a billion dollars a mile, it will not even accomplish its purported goal of reducing traffic congestion.  This is why the Jersey City Council, the Hoboken Council and so many more are strongly opposing the project. This year, NJTA will be spending more money on the design of the Expansion, $109 million, than will be raised by the fare increase, $106 million. That design money should be immediately repurposed to forestall the NJT fare increase.  Indeed, the entire Turnpike Extension expansion project should be halted until the Legislature uses its oversight power to make a reasoned determination whether this is the best way to spend $10.7 billion of our transportation dollars when we have so many other compelling transportation needs.

Further, while the CTF would avoid an NJT death spiral, it will not provide the funds required to make the operational and capital improvements NJT desperately needs. Governor Murphy’s FY25 Budget continues his annual practice of raiding NJT’s capital budget to pay NJT operational expenses. He is proposing another $330+ million diversion this year. This practice, which has diverted billions of dollars away from needed infrastructure projects, has been massively detrimental to NJT.  Its trains are delayed and break down far more than other transit lines, including those that operate across the Hudson.  Its buses are old and overcrowded.

Crucial infrastructure projects – such as the long-promised extension of the Hudson-Bergen Light rail line, improving and expanding our woefully inadequate public transportation in South Jersey, more express bus lanes, and one-seat train rides into Manhattan to name but a few – remain unfunded and on the drawing board.  The change from diesel to electric buses is far behind the pace of other transit agencies as, once again, the Governor is also transferring $70 million in Clean Energy Fund dollars, which previously have been promised for bus electrification, to pay NJT operational costs.  The raids on NJT’s capital budget and the misuse of Clean Energy Fund dollars for NJT operational expenses vs. electric bus infrastructure must end this year.

Please use your authority over the state’s budget, and significant oversight powers over state agencies to work with us to ensure we solve our transportation crisis and make rational use of our transportation dollars. Please contact John Reichman with EmpowerNJ at [email protected] to set up a meeting and/or otherwise better coordinate this effort. Our economy, environment and health depend on reliable and affordable mass transit.

Sincerely,

32BJ

Empower New Jersey

Make the Road New Jersey

New Jersey Citizen Action

New Jersey Working Families Alliance

New Labor

Tri-State Transportation Campaign

Turnpike Trap

BlueWaveNJ

Clean Water Action

Delaware Riverkeeper Network

Don’t Gas the Meadowlands Coalition

Environment New Jersey

Food and Water Watch

Bike & Walk Montclair

Bike Hoboken

Bike JC

Bike North Bergen

DivestNJ

Ethical Culture Society — Essex County Social Action Committee

Friends of Liberty State Park

Hudson County Complete Streets

NJ Association of Rail Passengers

New Jersey Bike & Walk Coalition

New Jersey League of Conservation Voters

New Jersey Policy Perspective

NJ Forest Watch

Our Green West Orange

Riders Alliance

SafeStreetsJC

SOMA Action

Unitarian Universalist Faith Action NJ

The Wei LLC

Waterspirit