(The Associated Press distributed the following story by Steve Strunsky on July 31.)
NEWARK, N.J. — NJ Transit will not raise fares in 2004, but it will increase spending as it implements several new services, including the Secaucus Transfer Station, scheduled to open in September.
The agency’s board of directors approved the operating and capital budgets yesterday, NJ Transit executive director George Warrington said.
The $1.3 billion operating budget, for daily expenses, is $82 million more than the 2003 plan, he said. The $1.34 billion capital budget, for major expenses such as construction, increased by about $100 million.
The $450 million Secaucus facility, a sprawling stucco structure visible along the New Jersey Turnpike near Exit 16W, will tie together most of the state’s rail network. Warrington said that unifying that network had been one of the agency’s goals over the last 20 years.
Service will operate only on weekends at first, as the agency perfects the operation and passengers become familiar with the service. Regular weekday service will begin in the fall, Warrington said.
Other enhanced services will be seen on the Southern New Jersey Light Rail Transit System, which runs from Camden to Trenton, and on the Hudson-Bergen Light Rail line, which runs from Bayonne to Hoboken.
Continuing expenses in the operating budget will rise by $34 million, or 2.8 percent, mainly due to increases in labor, health care, electricity and fuel costs, Warrington said.
About half of the agency’s expenses are paid for by revenues – mostly from ticket sales – with state and federal subsidies covering the rest. Warrington said a $34 million increase in state and federal funding will help the agency meet its rising expenses without raising fares.
Most of the capital budget – $800 million – will be spent to maintain current services, pay off debt, and finish past projects.
NJ Transit has spent capital money on operations to balance its books over the last decade, Warrington conceded. But board members cautioned against such a practice, and Warrington said he wanted to end it.
About half of the capital budget is from state sources such as the Transportation Trust Fund, which is financed by gasoline taxes. The rest comes from the federal government and the Port Authority of New York and New Jersey.