(The following article by Joe Malinconico was posted on the Newark Star-Ledger website on July 16.)
NEWARK, N.J. — For a while, only budget geeks and government watchdogs noticed.
Year after year, NJ Transit was increasing the amount of borrowed money it was using to pay for its operating expenses. But the maneuver started to draw more attention and become controversial as it used up money in the state’s transportation trust fund and helped spur consideration of a gas tax increase.
Now, for the first time in more than a decade, NJ Transit is reducing the amount of bonded money it will use to pay for routine expenses as part of the agency’s 2005 budget approved yesterday.
Not that the reduction is massive. In last year’s budget, NJ Transit used $356.6 million from the trust fund for operating expenses. This year, it’s using $356 million.
“This is a gradual transition,” said NJ Transit Executive Director George Warrington.
“It’s a modest start,” said Jon Orcutt, executive director of the Tri-State Transportation Campaign, a watchdog group. “There’s a major day of reckoning ahead for transit.”
The budget approved yesterday included $1.34 billion for operating expenses and $1.19 billion for capital projects.
For the 13th time in 14 years, fares on trains, buses and light rail systems remain the same.
In fact, transit officials opted not to impose an inflationary fare hike that is allowed under the resolution that increased fares in 2002.
“After deciding not to raise the gas tax, it would have been too tough politically to raise fares for the second time in two years,” Orcutt said.
The transit budget benefits from a sizable increase in its state operating subsidy, an extra $85 million that will help offset the $20 million deficit from running the new River Line between Camden and Trenton and the $4.5 million operating deficit at the new Secaucus Junction station.
Among the highlights in the capital budget are:
# $253 million for projects to keep the rail system in good repair, like the rehabilitation of three viaducts in Essex County and the overhaul of the agency’s Arrow III passenger cars.
# $76 million for improvements at the Newark Broad Street, Ridgewood, Trenton and Metropark rail stations.
# $18 million for bus system and light rail repairs, including financing for 290 new transit buses.
# $15 million to improve public announcement systems.
# $7.5 million to expand or open new park-and-rides in place like Edison, Rahway, Wayne and Hamilton.