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Just weeks after “No fare hike Needed” , NJT must close $57 million budget gap

lasttraintoclarksville_theridgewoodblog
March 26,2016

the staff of the Ridgewood blog

Ridgewood NJ, Just weeks since a potential strike was adverted and less than a year after NJ Transit closed a $56 million budget gap by raising passenger fares 9 percent, NJT now finds itself another $57 million in the hole. Slower ridership growth leading to lower-than-projected revenues leaves the agency 128 days to close the budget gap.

The biggest single hit “surprise “was a new contract for unionized bus workers, which cost the agency $46.6 million in additional salaries and benefits. NJ Transit also spent $18 million more than it expected on services by outside companies, including a program to overhaul the agency’s double-decker train cars, plus another $13 million on materials and supplies, to renovate facilities . Federal money partially offset some of these expenses , and NJ Transit expects more federal reimbursements to help off set budget gap.

According to NJT the biggest financial challenge is the new contract with 11 rail unions to increase pay for its 4,200 train workers by 21 percent between now and the end of 2019, including retroactive pay to 2011. NJT has not yet released the contract’s total cost, but Governor Christie reiterated it will not necessitate another fare increase. NJT last raised fares in July 2015.
Besides the new contract NJT will soon pay more money yest unspecified to use Northeast Corridor tracks belonging to Amtrak, this according to the Northeast Corridor Commission.

One thought on “Just weeks after “No fare hike Needed” , NJT must close $57 million budget gap

  1. The phrase “you’re either with us, or against us” (or “Whoever is not with us is against us”) are used to depict situations as being polarized and to force witnesses, bystanders, or others unaligned with some form of pre-existing conflict to either become allies of the speaking party or lose favor. The implied consequence of not joining the team effort is to be deemed an enemy.

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