(The following article by Larry Higgs was posted on the Asbury Park Press website on March 3.)
NEWARK — NJ Transit Executive Director George Warrington is keeping quiet about whether the agency will increase fares this year, but the agency had to spend $22 million more for fuel than anticipated in this fiscal year’s budget.
What Warrington does want is a broader policy of predictable fare increases and aid from the state to avoid NJ Transit having to use capital funds — earmarked to build major projects — to pay for operating expenses, as it has for 12 years.
A possible fare increase was hinted at by officials last week when Gov. Corzine announced his plan to bail out the soon-to-be bankrupt Transportation Trust Fund.
Rider advocates at NJ Transit’s board meeting Thursday were very vocal that a fare increase, which is not accompanied by an increase in the gas tax, is unacceptable.
“NJ Transit fares have increased four times, with no increase in the gas tax,” said Bill Wright, a director of the New Jersey Association of Railroad Passengers. “The gas tax is the fare that the motorist pays, and this must be corrected.”
Of the current 10.5-cent-per-gallon state gas tax, nine cents goes to transportation and the remainder to the state general fund. Corzine’s plan would redirect the remaining 1.5 cents from the tax to transportation. Advocates said the burden shouldn’t be placed only on transit riders.
“Our fares went up eight months ago, and now we hear of another fare increase,” said David Peter Allan, chairman of the Lackawanna Coalition. “The gas tax is the third lowest in the nation. If you raise fares without raising the gas tax, such an act would be shameful.”
However, Warrington said the agency’s budget is still under review and that it’s too soon to make a judgment.
“No amount is being thrown around, and no judgment has been made about fares,” he said. “We won’t make a judgment on the budget or fares for several months.”
His ultimate objective is longer term — to establish a policy for predictable state appropriations for NJ Transit’s operating costs along with fare increases. Commuters interviewed when last year’s 9 percent fare increase took effect complained they would rather see an inflationary fare increase annually, rather than a big hit after several years.
“NJ Transit has lurched along for 30 years without a clear policy of public and rider investment,” Warrington said.
That kind of policy would allow NJ Transit to plan better and to cover the operating costs of new services, he said. Since 1990, the agency has shifted $350 million of capital project money to cover operating costs, Warrington said.
Last year, Warrington took steps to freeze that shift and start to roll it back, but that will take a commitment for more state money and fare increases to fund operations.
“The challenge is making sure it is reasonable and predictable,” Warrington said. “My objective is to start the discussion.”