Last year proved disastrous for New Jersey transit riders who were slapped with fare increases and cuts in service — not to mention Governor Chris Christie’s decision to put the kibosh on the Access to the Region’s Core tunnel. This year’s budget calls for increases in overall transportation and transit funding — specifically targeted to bus service improvements. Is there a light at the end of the tunnel for transit riders, and for the transportation system in general?

Christie’s budget proposal, released late last month, would increase both NJ Department of Transportation and NJ Transit funding. NJDOT was among six departments spared by the governor’s budget axe, with a 10.84% increase from the previous year’s appropriation.

Governor Christie’s overall budget proposal is $24.9 billion, a 2.6% decrease from the previous year. The governor did not mention transportation specifically in his budget address, but the accompanying documents identify a “responsible plan” to fund infrastructure projects as a key funding priority.

Of this, it appears at first blush that at least part of the NJ Turnpike Authority’s contemplated $1.25 billion contribution to the now-defunct ARC project is being diverted to the Transportation Trust Fund, which pays for most of the state’s transportation infrastructure but is headed towards bankruptcy. This looks consistent with Christie’s earlier proposal to replenish the fund, outlined in January.  That proposal promises $8 billion over 5 years via more debt, “one-shot” transfers from the Port Authority, and transfers from the general fund. Details regarding the NJDOT and NJ Transit capital programs have yet to be released.

Pursuing funding for the transportation capital programs as part of the state’s budget, rather than through a dedicated fund, raises questions about the future viability of transportation funding in New Jersey. Will the state increasingly rely on year-to-year appropriations for transportation, rather than finding adequate support for a multi-year Transportation Trust Fund that supports long-term planning? Christie’s proposal to deal with the bankruptcy of the TTF relies on hundreds of millions of dollars in new revenues in future years, but the administration has yet to explain where those revenues will come from.

Another identified priority is “expanding operational support of NJ Transit.” With increased operating support, Governor Christie promises he will maintain NJ Transit fares, preserve current service, and expand bus service to “select growth markets.” At yesterday’s NJ Transit board meeting, agency head James Weinstein announced these would focus on Newark and elsewhere in northern urban counties. Weinstein also said he envisioned “tweaking” other bus routes, and noted that some have not changed since the 1950’s.

The highly popular Local Aid program will be kept at $200 million, the same level as last year, which will help to rehabilitate local roads, fix intersections, and build sidewalks.

Recommendations

As the Legislature considers Christie’s proposal, TSTC has the following recommendations:

Adequate funding for NJ Transit: TSTC recommends adequate funding from the Transportation Trust Fund and the general fund to maintain the fare and the proposed expansion of service to growth areas. These should include Trenton, Newark and Camden, cities where a significant portion of the population relies on transit.

Establish an NJ Transit Operating Fund: TSTC recommends establishing an NJ Transit Operating Fund from which day-to-day expenses, such as fuel expenses and salaries, can be paid. The current scheme for funding is inadequate, and hundreds of millions of dollars are transferred each year from the transit agency’s capital program to meet these operating costs. There are three viable funding sources from which an Operating Fund can be derived:

1. Utilizing part of the $1.25 billion from the NJ Turnpike Authority which was dedicated to ARC.
2. Tax revenues from “transportation development districts,” special financing districts which assess developments that burden the existing transportation network, as set forth in the Transportation Development District Act of 1989.
3. Revenue from NJ Transit’s plan to privatize 81 train station parking lots, if the agency goes through with it.

Increase Local Aid funding: Increased funding will help municipalities maintain their roads while adhering to the 2% annual property-tax cap signed into law by Governor Christie last summer, help the state meet its goal of building 1,000 new miles of bike lanes (which was supposed to have been acheived by July 2005), and ensure there is funding for projects under the complete streets policy adopted by NJDOT in December 2009.