NJ Transit proposing 15% fare increase and then 3% annually

NJ Transit is proposing a 15% system-wide fare hike to begin in July and subsequent 3% hikes annually starting in 2025.

The agency will be holding 10 public hearings in 10 counties, including both morning and evening sessions, beginning Monday, March 4, through Friday, March 8, to allow the public the opportunity to learn more about the proposed fare adjustment and offer comments before the plan is considered by the NJ Transit Board of Directors.

Customers may visit www.njtransit.com/hearing for complete information regarding the fare increases, to view the hearing schedule and to submit comments electronically.

The increase has not been getting a lot of support.

NJ Transit has not had a fare increase since 2015. Since then, the agency has added additional service on more than 100 bus routes and implemented emergency services to support customers abandoned by multiple private bus carriers who discontinued routes.

Ridership has returned to approximately 80% of pre-COVID levels, with many peak period trips at or exceeding pre-pandemic levels. However, NJ Transit is entering the fifth consecutive year of overall ridership that will be below pre-COVID levels, which has resulted in a reduction of nearly $2 billion in farebox revenue for the agency, according to a press release from NJ Transit.

NJ Transit used federal COVID relief funding over a multi-year period to maintain full service levels, however that funding will be exhausted in Fiscal Year 2025, which runs from July 1, through June 30, 2025. The COVID pandemic exacerbated the agency’s structural funding deficit that has existed since NJ Transit was created more than 40 years ago.

In July 2023, NJ Transit’s very preliminary estimates for FY25 identified a budget deficit of $119 million. Cost drivers have increased substantially since then, including an increase in inflation of more than 30% since 2015, affecting things such as fuel costs and materials, the release said.

Assemblywoman Nancy Munoz, a Republican from Summit, blamed the Murphy administration. “Gov. Murphy said he will fix New Jersey Transit if it kills him. His only plan is to kill affordable public transit for residents now that he doesn’t have to worry about state elections anymore,” said Munoz (R-Union), the GOP budget officer.
Assemblywoman Garnet R. Hall (D-Essex, Union) said NJ Transit decision-makers should explore alternate ways to close the budget gap.

“Affordable and accessible public transportation is not just a convenience, it’s a vital resource for our community,” she said. “Increased transit fares place a strain on commuters’ wallets and unfairly burden residents in a district that houses Newark Penn Station, a major New Jersey Transit transportation hub.”

Senate President Nick Scutari said mass transit is the lifeblood of the state’s economy.

“New Jersey Transit is obviously in need of additional financial support, but continual fare increases will not fix the problem. We simply cannot rely on everyday commuters to carry the burden of NJ Transit’s billion dollar deficit, nor should we count on one-shot funding mechanisms to fill the hole.
NJ Transit cites the following as also contributing to the need for a fare increase:

• Fully restoring the ranks of locomotive engineers and graduating more than 2,300 new bus operators.

• Operational costs of more than $30 million associated with operating emergency bus service to replace multiple abandoned private carrier bus routes.

• Contractual wage increases related to labor collective bargaining agreements covering approximately 10,000 of the more than 12,000 NJ Transit employees.

• Healthcare costs, which have risen nearly 47% during this period.

Revenue enhancements have been proposed including ending the FLEXPASS program and creating 30-day expiration dates on all one-way tickets. FLEXPASS provides 20 one-way tickets for travel between one origin and one destination station, at a 20% discount. It was created for people who split their time working from home and commuting to work.

Public hearings being held locally are:

• Friday, March 8, from 6 to 8 p.m., in Newark at NJ Transit Headquarters, Board Room, Ninth Floor, 1 Penn Plaza East, Newark.

• Thursday, March 7, from 6 to 8 p.m., Kean University, North Avenue Academic Building, Conference Center, Room 606, 1000 Morris Ave., Sixth Floor, Union.

  NJ Transit