(The following story appeared on the Philadelphia Inquirer website on July 16.)
NEWARK, N.J. — NJ Transit yesterday approved a $1.3 billion fiscal 2005 operating budget that increases spending 2.9 percent but keeps fares level.
Fares are projected to account for less than half the budget, or $558 million, with state subsidies totaling $278 million. Most of the remaining revenue, $365 million, is to come from a transfer of capital funds.
Executive director George Warrington said it was the first time in 12 years that the capital-fund transfer had not risen, thanks to an increased operating subsidy under Gov. McGreevey’s state budget. Still, some rail advocates have frowned upon using capital money to pay operating expenses.
About $151 million of NJ Transit’s operating budget includes funding for the first full year of the light-rail River Line from Camden to Trenton, and extension of the Hudson-Bergen light-rail line north of Hoboken. The transit board also approved a $1.2 billion capital spending plan, roughly equal to last year’s figure.