NJ Transit adopts fiscal year 2020 operating, capital budgets

NEWARK, NJ — On July 17, NJ Transit’s board of directors adopted a fiscal year 2020 operating budget and capital program that supports continued investments in personnel, infrastructure and equipment to maintain the system in a state of good repair and enhance the overall customer experience. 

“Gov. Murphy’s steadfast commitment to improving NJ Transit is demonstrated through the additional resources provided in the FY 2020 budget. These funds will support continued system improvements while keeping fares stable,” said New Jersey Department of Transportation Commissioner Diane Gutierrez-Scaccetti, who also chairs NJ Transit’s board of directors.

“The operating and capital budgets continue the investments we’ve been making in equipment, infrastructure and personnel needed to improve the customer experience,” NJ Transit President and CEO Kevin Corbett said. “This balanced budget shows we are maximizing our resources and spending every dollar wisely to restore the agency to national prominence and provide the transportation services New Jersey residents expect and deserve.’’

The board adopted a $2.39 billion operating budget and a $1.42 billion capital program for FY 2020. This budget does not include a fare increase for FY 2020.

More than 40 percent of the revenue in the FY 2020 operating budget comes from passenger revenue. The remaining amount comes from a combination of commercial revenue and state and federal resources. The budget includes an additional $150 million in general fund support for a total subsidy of $457.5 million, the largest general fund subsidy to NJ Transit in state history. Of this, $75 million will replace diversions and $75 million represents new direct funding.

The capital program funds continue state-of-good-repair investments in transit stations and infrastructure, investments in the Northeast Corridor, fare modernization, safety initiatives, bus and rail car purchases, Positive Train Control installation, system expansion, and support for local mobility programs. 

Approximately 61 percent of the operating budget is dedicated to costs associated with labor and fringe benefits. Other significant expenses include contracted transportation services, which represent 11 percent of total operating expenses. Other expenses, including materials, fuel and power, utilities, and outside services, represent the remaining 28 percent of the total operating expenses. The budget also allows for the expansion of personnel in key areas within bus, rail, light rail, police operations and strategic administrative support services.

  NJ Transit