Newark, NJ – NJ Transit has announced a proposal for a 15% systemwide fare adjustment, slated to take effect from July 1, 2024. This decision marks the first fare increase since 2015 and aims to address a budget deficit of $106.6 million. The fare hike is proposed as a necessary measure to maintain service levels, following a period of significant service enhancements and operational improvements.
Since 2018, NJ Transit has focused on improving customer experience through various initiatives, including the launch of a redesigned mobile app, new fare payment technologies, and the introduction of services like the Access Link Riders’ Choice Pilot Program in partnership with Uber and Lyft. Despite these advancements, the pandemic has significantly impacted the agency’s finances. The onset of COVID-19 saw a drastic reduction in ridership, resulting in a nearly $2 billion loss in farebox revenue. Although federal COVID relief funding helped maintain full service levels, this funding is expected to be exhausted by Fiscal Year 2025.
The agency has undertaken internal assessments to identify cost reductions and revenue enhancements, resulting in savings and additional revenue of $96 million. However, these measures alone are insufficient to bridge the budget gap. The fare adjustment proposal includes an annual 3% increase starting July 1, 2025, ensuring a predictable and gradual fare increase.
Public hearings across New Jersey counties are scheduled to commence from March 4, 2024, offering residents the opportunity to learn more and provide feedback on the proposed fare adjustments.
Governor Phil Murphy’s administration has faced criticism for opting for fare hikes instead of alternative funding sources, such as a corporate business tax. The fare increase coincides with Murphy’s ambitious clean energy goals, notably the recent approval of new wind farms, yet raises concerns about the impact on public transport affordability, an essential component of environmental sustainability.
Jersey City Mayor Steven Fulop has criticized the fare hikes as undermining trust and going against the rhetoric of a fairer New Jersey. Environmentalists and transportation advocates have also voiced concerns, emphasizing the importance of affordable public transit in reducing greenhouse gas emissions and questioning the state’s commitment to funding NJ Transit adequately.