(The following article by Larry Higgs was posted on the Asbury Park Press website on May 5.)
ASBURY PARK, N.J. — Commuters, including those who turned to NJ Transit trains and buses in record numbers last month for relief from rising gasoline prices, may see the cost of rail and bus tickets increase also. NJ Transit officials forecast that a fare increase may be needed in spring 2007 to meet revenue needs.
In response to documents supplied to state legislators reviewing the fiscal year 2007 transportation budget, NJ Transit officials said they anticipate that a “single-digit fare increase to take effect on or about the fourth quarter of 2007 will be necessary.”
Officially, a fare increase has not been proposed.
Like the state, NJ Transit’s budget year runs from July 1 to June 30 of the next year. Fares last rose in July 2002, by an average of 9.9 percent. Estimates put the proposed increase at 7 percent, based on the difference between revenues, for fiscal years 2006 and 2007.
NJ Transit’s budget proposal would raise $61.8 million more in revenue from passengers than a $43.1 million increase originally quoted, which would come from a fare increase, according to the documents. NJ Transit is proposing a $1.53 billion budget in fiscal year 2007. State officials cautioned the numbers are drafts and could change.
Riders such as Chris Lehmann of Freehold wondered why fares don’t go down when the price of gas levels off and if increased ridership would bring enough revenue to avoid a fare increase.
“More people will ride buses, and they’ll get more revenue,” said Lehmann, who has ridden the bus for 13 years. “To come back and ask for an increase again seems like double dipping.”
Transit advocates said riders are being singled out again, because the state’s gas tax, which partly funds road improvements, hasn’t been increased since the late 1980s.
“This will be the fifth transit fare increase, and there hasn’t been a gas tax increase since the late 1980s,” said William Wright, New Jersey Association of Railroad Passengers secretary and board of directors member. “This would be the sixth fare increase (since that time) and it is very discriminatory.”
In a prepared statement, Transportation Commissioner Kris Kolluri said a fare increase isn’t a done deal. “The governor’s $22 million increase in support for NJ Transit avoids a fare increase this year. It’s premature to discuss fare adjustments next year as we continue to analyze the impacts of rising gas prices, including increased ridership and fare revenue, as well as higher fuel costs,” Kolluri said. “Recognizing that fare increases are an action of last resort, NJ Transit continues to cut costs and increase commercial (nonfare) revenues.”
In fiscal year 2006, NJ Transit increased its fuel budget from $39 million to $49 million and still overshot it by $22 million, officials said.