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NJ TRANSIT ADOPTS FY07 OPERATING, CAPITAL BUDGETS
More bus and rail service will support record ridership without fare increase
August 1, 2006
Contact: Dan Stessel or Penny Bassett Hackett
NEWARK, NJ — The NJ TRANSIT Board of Directors today adopted a $1.5 billion operating budget and a $1.3 billion Capital Program for Fiscal Year 2007 (FY07) that funds the transit system through June 30, 2007. Without raising fares, NJ TRANSIT will offer three million more miles of bus and rail service than last year to support anticipated record ridership of more than 860,000 passenger trips daily.
“Our transportation network is central to our mobility, our economy, and our quality of life,” said Governor Jon S. Corzine. “We are working to keep transit affordable and encourage transit usage as a means to avoid high gas prices, reduce traffic congestion and cut back on vehicle emissions.”
The Board’s action also sets in motion a number of capital projects, including the replacement of 230 Arrow III rail cars and nearly 1,200 local transit-style buses, as well as continuing critical work to keep stations, terminals and railroad infrastructure in a state of good repair.
“Governor Corzine’s leadership to replenish the state’s Transportation Trust Fund, combined with increased state support for operations, have enabled us to adopt a budget that will maintain and expand a safe and reliable public transportation system,” said NJ DOT Commissioner and NJ TRANSIT Board Chairman Kris Kolluri.
NJ TRANSIT’s operating budget includes $30 million in business efficiencies and revenue enhancements for FY07, in addition to nearly $60 million in efficiencies achieved since FY03. The cost-cutting actions include the elimination of vacancies and reduced headcount through attrition, vehicle repairs and parts inventory efficiencies, new technology implementation and reduced advertising, consultant and general administration costs.
“The Governor’s increase in state support, combined with our belt tightening and managing down costs, enabled us to address new service and spiraling fuel, electric power, and other extraordinary expense pressures without having to increase fares,” said NJ TRANSIT Executive Director George D. Warrington.
The FY07 Operating Budget:
Accounts for service growth in core rail/bus service, the first full year of Hudson-Bergen Light Rail (HBLR) service to Tonnelle Avenue and the initiation of Newark Light Rail service to Broad Street Station.
Provides additional funding for rail/bus maintenance, including maintenance of the new multi-level rail cars, as well as increases in bus, Access Link and HBLR contract service costs.
Freezes the level of capital program funds that are transferred to cover operating costs at the FY06 level and replaces Transportation Trust Fund monies used to cover operating costs with additional federal funds.
Provides for increased costs associated with an expected four percent ridership increase in FY07. By the end of the fiscal year, ridership is projected to reach 860,000 average weekday trips, a nine percent increase over the last two years.
The operating budget’s expenditures are offset by $769.3 million in fares and other system-generated revenue, $300.7 million in state operating assistance and $448.7 million from other state and federal assistance.
The majority of the FY07 Capital Budget – $789 million – is dedicated to fixed expenses, such as capital maintenance, debt service and earmarked funds.
The remainder of the budget includes:
$219 million for new starts, including $105 million for the Trans-Hudson Express Tunnel.
$158 million for rail infrastructure and equipment, including $45 million to fund state-of-good repair needs on the Northeast Corridor.
$54 million for system-wide improvements, including technology upgrades that will improve efficiency and reduce annual operating costs.
$51 million for bus and light rail infrastructure and equipment improvements.
$35 million for rail station improvements, including New York Penn Station, Trenton Station and Metropark.
$4 million for park & ride expansion at South Amboy and Rt. 23 Park & Ride in Wayne.
The Capital Budget is primarily funded by the New Jersey Transportation Trust Fund ($675 million), federal grants ($369.6 million) and federal earmarks ($134 million).
About NJ TRANSIT
NJ TRANSIT is the nation's largest statewide public transportation system providing more than 827,000 weekday trips on 240 bus routes, three light rail lines and 11 commuter rail lines. It is the third largest transit system in the country with 162 rail stations, 60 light rail stations and more than 18,000 bus stops linking major points in New Jersey, New York and Philadelphia.