Thursday’s assembly Transportation Committee hearing was long on bad news and short on details about how NJ Transit officials plan to plug a $300 million hole in their budget, except to warn there will be fare increases. A specific fare increase and service cut package is two to three weeks away from being revealed, said James Weinstein, NJ Transit executive director, but he warned it won’t be small. He said Gov. Chris Christie’s actions to cut $32.7 million in state subsidies for 2010 only hastened discussion of the agency’s budget issues. An e-mail sent to United Transportation Union workers after a meeting between NJ Transit and labor officials last Friday said they were told to prepare for a 20 percent to 30 percent fare hike, service cuts and job reductions.
“We talked about the possibility of 20 to 30 percent fare increases with the union, but that remains to be seen,” Weinstein said after the hearing.
Weinstein warned that it would not be a “2 to 3 percent fare increase,” but wouldn’t say what was under consideration.
“The outlook is more grim for fiscal year 2011 both for the state and NJ Transit,” Weinstein said. “It will be hard and it will be difficult, but we can’t ask the state for help it can’t afford to give.”
Weinstein detailed to the committee that the bad economy took a higher toll on the agency’s revenue, reducing ridership by 4 percent, which resulted in a 40 percent reduction in passenger revenue, he said. Traditionally, NJ Transit has covered 50 percent of its operating costs from fares.
But some transit advocates said they believe fare hikes and service cuts are inevitable, partly because of the size of the budget gap.
“I think both fare increases and service cuts will be needed, at least a 20 percent increase in fares and a 10 percent increase in services,” said Jeff Tittel, director of the Sierra Club’s New Jersey chapter.
Tittel said that drivers have a vested interest because one bus keeps 50 cars off the road and one train takes 500 vehicles out of traffic. Read full article in APP