NJ Transit Rides Face 15% Fare Increase on Monday

the staff of the Ridgewood blog

Ridgewood NJ, starting Monday, July 1, NJ Transit will implement its first fare increase in nine years, marking the beginning of annual fare hikes that will continue indefinitely. This initial 15% increase, with even steeper rises for those relying on expiring discount programs, is part of a broader strategy to address the agency’s chronic funding shortages.

Annual Fare Increases and Budget Challenges

The fare hikes, which include a 3% increase each subsequent July, were approved by NJ Transit’s board in April. These changes aim to help close the predicted $106 million budget gap for the fiscal year starting July 1. Additionally, NJ Transit has identified $96 million in internal cuts and efficiencies to balance its budget.

Commuter Struggles

The fare increases come amidst significant challenges for NJ Transit riders. Rail commuters have faced near-daily, hours-long delays due to equipment failures. Bus riders, particularly those impacted by Coach USA’s bankruptcy proceedings, face uncertainty and potential service disruptions.

Seeking Budget Cuts

A consultant hired by the Murphy administration is currently tasked with identifying ways to reduce NJ Transit’s budget by 20%, equivalent to $600 million, before the end of the year. The details of the consultant’s findings were not made public during the fare hike decision-making process.

Predictable vs. Sporadic Increases

Agency officials argue that riders prefer predictable, smaller fare increases over sporadic, larger hikes. While other public transportation agencies, such as SEPTA in Philadelphia and the MTA in New York City, have moved toward indexed or planned increases, NJ Transit’s plan could escalate fares more rapidly than its peers.

Corporate Transit Fee

NJ Transit is also expected to benefit from a proposed corporate transit fee, a 2.5% surcharge on corporations earning over $10 million annually. The fate of this tax, proposed by Governor Phil Murphy, hinges on current budget negotiations in the Legislature.

Key Changes for Riders

Here’s what riders should expect starting Monday, July 1:

• Initial Increase: A 15% fare increase, with 3% annual hikes every July 1 thereafter.
• Refund Program: Riders who purchased one-way or 10-trip tickets can seek refunds starting August 1.
• Ticket Expiration: All paper and 10-trip tickets will now expire 30 days from the date of purchase.
• End of FlexPass: The FlexPass program, which offered a 20% discount with the purchase of 20 tickets, will be discontinued.

These changes mark a significant shift for NJ Transit riders, who will need to navigate the new fare structure and adjust to the ongoing financial strategies of the agency.

 

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