NJ TRANSIT ADOPTS FISCAL YEAR 2024 OPERATING AND LOCAL PROGRAMS BUDGET, SECURES AUTHORIZATION FOR CAPITAL FUNDING
Budget Continues Governor Murphy’s Commitment to Keep Fares Stable While Advancing Critical Infrastructure Projects and Customer Experience Improvements
July 19, 2023
NEWARK, NJ — The NJ TRANSIT Board of Directors today adopted the agency’s Fiscal Year 2024 (FY 2024) operating budget, local programs budget and authorized capital funding. The budgets continue investments in personnel, infrastructure, and equipment to maintain the system in a state-of-good-repair and enhance the overall customer experience.
“Through the Operating Budget and capital funding approved today, NJ TRANSIT will ensure the continued safety and reliability of our system, deliver a high-quality experience for our customers, and improve our overall service, without imposing any fare increases,” said NJ TRANSIT President & CEO Kevin S. Corbett. “We are especially proud of our continued collaboration with all 21 New Jersey counties to fund community transportation programs, a critical part of meeting the mobility needs of New Jerseyans who depend on public transportation.”
The Board adopted a $2.86 billion operating budget and $1.73 billion in capital funding for FY 2024. The operating budget does not include a fare increase for FY 2024.
FY 24 Operating Budget
Twenty-seven percent of the revenue in the FY 2024 operating budget comes from passenger fares. The remaining amount comes from dedicated funding from the New Jersey Turnpike Authority, which is $440 million in FY24, in addition to federal COVID-19 relief money, and a combination of commercial revenue and state and federal resources.
Approximately 60 percent of the operating budget is dedicated to costs associated with labor and fringe benefits. Expenses including materials, fuel and power, utilities, and outside services represent 31 percent of the total operating expenses. Purchased transportation represents the remaining 9 percent of total operating expenses.
FY 24 Capital Funding Appropriation
This year’s Fiscal Year 2024 Capital Funding Appropriation totals $1.733 billion and represents an expected funding source that will provide, along with other past and future annual appropriations, the funds needed to execute the funded portion of investments in the FY2021-FY2025 Capital Plan.
The Capital Funding Appropriation is funded from a number of sources: $796.4 million from the Federal Transit Administration (FTA), $34.8 million from the federal All Stations Accessibility Program (ASAP), $75 million in flexed funds from the Federal Highway Administration (FHWA) provided through the New Jersey Department of Transportation (DOT), $760 million from the New Jersey Transportation Trust Fund (TTF), and $66.5 million of Casino Revenue, Local Match, and Turnpike Authority funds.
NJ TRANSIT’s Five-Year Capital Plan continues to prioritize investments in infrastructure to maintain an overall state-of-good-repair, enhance reliability, safety, and resiliency as well as improve the overall customer experience on the system. The Five-Year Capital Plan is an unconstrained vision of projects to demonstrate opportunities for safety, service, reliability, resiliency, sustainability, and other improvements critical to NJ TRANSIT.
The Five-Year Capital Plan contains two sets of projects – the first set includes projects already funded by existing or expected resources. The second set identifies proposed projects for which funding has yet to be identified but is vital to NJ TRANSIT’s service delivery.
FY 24 Local Programs
NJ TRANSIT partners with all 21 New Jersey counties to fund community transportation programs. These programs assist a variety of private non-profit organizations, counties, municipalities, county improvement authorities, and NJ TRANSIT in meeting the mobility needs of New Jerseyans who depend on public transportation.
These programs include the following:
- $38.9 million from the New Jersey Casino Revenue Fund to operate the statewide Senior Citizen and Disabled Resident Transportation Assistance Program, or SCDRTAP.
- $13.8 million for Federal Transit Administration (FTA) Section 5310 “Enhanced Mobility of Seniors and Individuals with Disabilities” programs, which provide federal funds for operating expenses as well as the purchase of vehicles and related equipment by private, non-profit agencies, and designated public entities. This includes $2.7 million in state funding to support local matching fund requirements.
- $6.2 million for FTA Section 5311 “Formula Grants for Rural Areas” programs, which provide federal funds for capital, administrative, and operating assistance for public transportation services in and between small urban and rural areas of New Jersey. This includes $2 million in state funding to support local matching fund requirements.
- $155,540 in federal funding for the FTA Section 5311(b)(3) Rural Transit Assistance Program, which provides training and technical assistance for small transit operators receiving funding through NJ TRANSIT’s Local Programs.
- $843,962 for FTA Section 5311 Rural Intercity Bus Transportation Program
- $5.5 million for the New Jersey Jobs Access and Reverse Commute (NJ-JARC) Program under which counties and localities provide public transportation services to help residents obtain community transportation to employment opportunities.
- $6 million in other funds passed through to sub-recipients.