New Jersey Transit passengers will face double-digit fare hikes as the agency grapples with a massive budget deficit. New Jersey Governor Phil Murphy’s administration has proposed a 15 percent increase, which will impact vulnerable residents and tens of thousands of commuters traveling to New York City. These fare hikes mark the first increase since Murphy took office in 2018. The pandemic, ongoing funding issues, and the governor’s politically popular flat fares have contributed to NJ Transit’s financial woes. In addition to the 15 percent hike set for this summer, the administration plans to implement annual 3 percent increases starting next year.
These fare hikes come amid criticism for Murphy’s decision to block funding for New York’s mass transit agency by opposing toll increases that would support the Metropolitan Transportation Authority. The administration claims that the fare increases are a necessary measure to prevent a death spiral and ensure the continuity of service at the country’s third-largest transit agency. Notably, there have been no fare hikes for the past nine years, and the annual increases will provide a more predictable rise, similar to the approach adopted by the MTA for subway fares.
Under NJ Transit’s plan, the cost of the least expensive one-way bus trip would increase from $1.60 to $1.80, while interstate trips from Jersey City to Manhattan would rise from $3.50 to $4. The fare increases have been met with strong opposition, with Jersey City Mayor Steven Fulop calling them unacceptable and undermining trust. NJ Transit’s ridership remains below pre-pandemic levels on average, and the agency’s budget heavily relies on federal relief funds, which are running out.
Critics argue that New Jersey has been mismanaging its own funds allocated to NJ Transit, with the state’s operating subsidy plummeting from over $450 million to less than $150 million. Zoe Baldwin, the New Jersey director of the Regional Plan Association, labeled the fare increases as outrageous given the state’s failure to meet its financial obligations.
Governor Murphy has previously made efforts to improve NJ Transit, such as hiring train engineers and enhancing train safety. However, the fare increases threaten to tarnish his reputation as he approaches the second half of his second term. Additionally, the timing of these hikes risks diverting attention from Murphy’s recent political triumph in gaining approval for two new wind farms to meet his clean energy goals. The increases may also face criticism from environmentalists, as public transportation is seen as an effective means to reduce greenhouse gas emissions.
The fare hikes may place more pressure on Murphy to explore alternative funding methods for NJ Transit. While some lawmakers and progressives suggest increasing corporate business taxes, the governor has rejected this approach and let the taxes decrease. The proposed fare hikes, which lack a comprehensive plan to address the larger budget deficit of around $800 million, further emphasize the urgency in finding sustainable funding solutions for the transit agency.
In conclusion, the proposed double-digit fare hikes by the Murphy administration have sparked concerns among New Jersey Transit riders. These fare increases, the first since Murphy took office, are viewed as a necessary measure to mitigate NJ Transit’s massive budget deficit. However, they have faced criticism for burdening vulnerable residents and commuters. As the proposal moves into a public comment period, the decision to implement these fare hikes will significantly impact the state’s transit system and garner continued debate on sustainable funding sources.
