NJ Transit Executive Speaks About Budget Woes

NJ Transit Executive Director James Weinstein acknowledged Wednesday afternoon that the statewide transit agency is facing current and future budget shortfalls that have arisen due to the severe national recession and the state's $2.2 billion current-year budget gap, and $11 billion FY11 budget gap.  

Last week. Gov. Chris Christie announced an 11 percent subsidy reduction, about $33 million, to NJ Transit's fiscal year 2010 state operating subsidy as part of a number of steps the governor is taking to close the state's current budget shortfall.

"This reduction is painful, but we understand the challenge the state is facing," Weinstein said. "We know the Governor appreciates the importance of the transit system to New Jersey's mobility, but we recognize that difficult measures are required to keep the state budget balanced."

The budget outlook is even grimmer for fiscal year 2011, which starts July 1 for both the state and for NJ Transit. Weinstein said the state faces an $11 billion deficit next year and is not likely to be able to continue to provide its historic level of NJ Transit operating assistance. NJ Transit also is unable to depend on another round of federal stimulus and other one-time federal transportation funding, which was utilized to help bolster the operating budget by $150 million.

In addition, NJ Transit is facing inflationary cost increases for things such as fuel and equipment parts, even as ridership declined systemwide by about four percent year to date, reducing fare revenue.

"In the transition report that I helped prepare as head of the transportation committee, we indicated that NJ Transit would face a budget deficit next year (FY11) of about $200 million," Weinstein said. "After reviewing more recent data, the projected operating deficit in FY11 is approaching $300 million."

Weinstein said NJ Transit will be as inclusive as possible as it studies options to meet the financial shortfalls and will seek input from customers and stakeholders on any fare and service proposals. The agency will be reaching out to customers and the public over the coming days to solicit comments and suggestions. To that end, the agency announced a series of public hearings on the fare and service change proposals that will take place mostly at its facilities in Newark, Atlantic City, Trenton, Secaucus, Camden, Paterson, Hackensack, Manalapan and New York. An extended period of public comment will be available online at njtransit.com beginning in early March.

More detailed information on the proposals and the hearings will be made available in the next week or two on our website and through formal public notices statewide.