NJ State Treasurer David Rousseau announced $812 million in departmental budget cuts last week, citing significant drops in tax revenues across the board due to the worsening economy. “While our revenues are falling below projections, demand for governmental services among citizens impacted by the crisis is growing,” echoed Governor Corzine in the Treasury Department news release announcing the cuts.

Bracing for the worst, advocates and transit riders were relieved to find that NJ Transit will only lose a $10 million surprise surplus generated by falling fuel costs. But the agency is hardly flush with cash. For many years now, NJ Transit has been forced to draw upon capital funds to pay for operating expenses, and in some cases cut service due to underfunding (see, for example, MTR #s 448, 536). The capital-to-operating transfer will likely continue under this budget.

Shielding NJ Transit from this round of cuts further solidified the Governor’s consistent record of transit support. Governor Corzine has managed to bolster the agency despite proposing some ominously austere budgets. Over the summer, he was able to dole out an extra $60 million in fiscal year 2009 operating revenue while avoiding a fare increase. He has been a champion for the ARC Tunnel, pleading its case before Congress as a part of a balanced stimulus package, and ensuring that a portion of NJ Turnpike and Garden State Parkway toll revenue was dedicated to the project.

Hopefully state legislators and the governor will continue to prioritize transit through the next round of budget negotiations and as the federal government prepares to dole out infrastructure funding as part of an economic stimulus package.