(Newhouse News Service circulated the following article on May 4.)
JERSEY CITY, N.J. — New Jersey Transit riders could face a fare hike next spring under the funding levels proposed in Gov. Jon Corzine’s state budget, documents prepared for lawmakers by the state Department of Transportation show.
The budget documents say a proposed “single-digit” fare hike would be designed to match the rate of inflation over the preceding two years – currently projected to total about 7 percent.
However, Corzine yesterday said he would work to “avoid” a fare hike, and New Jersey Transit executive director George Warrington said no final decision would be made until July.
The documents, submitted to the Office of Legislative Services this week as part of the Legislature’s consideration of Corzine’s $30.9 billion budget, say New Jersey Transit will need a fare hike next spring to meet revenue targets in the spending plan.
“The agency anticipates that a single-digit fare increase to take effect on or about the 4th quarter of FY 2007 will be necessary,” the budget document notes. “This fare increase will occur nearly two years after the agency’s last fare increase in July 2005.”
Warrington said yesterday the fare hike schedule laid out in the budget document is premature, and that no final decision on whether an increase is needed will be made until July.
Warrington said when the document was drafted about a month ago, the transit agency projected a shortfall of about $10 million to $20 million next spring. Since then, he said, rising gas prices have prompted thousands of new riders to use mass transit, raising the prospect the fare increase may no longer be needed.