New Jersey Transit’s board of directors has approved the Fiscal Year 2020 operating budget and capital programs, along with local projects extending or complimenting existing services.
The operating budget will support investments in personnel, infrastructure and equipment to keep the system up do date and enhance overall customer experience.
“Governor Murphy’s steadfast commitment to improving NJ Transit is demonstrated through the additional resources provided in the FY 2020 budget. These funds will support continued system improvements while keeping fares stable,” said Diane Gutierrez-Scaccetti, New Jersey Department of Transportation commissioner and NJ Transit Board of Directors chair.
The board agreed to a $2.39 billion operating budget and a $1.42 billion capital program for fiscal year 2020. About $45 million from federal and state funding will support programs that provide transportation services for senior citizens, people with disabilities, economically-disadvantaged residents and rural residents. The budget doesn’t include a fare increase.
“The services offered by these programs are critical to getting seniors, people with disabilities and working families to doctor’s appointments, jobs or basic necessities such as the grocery store,” said NJ Transit President and CEO Kevin Corbett. “Local governments and non-profits understand the needs of their communities and can meet those transportation needs with access to this funding.”
More than 40 percent of the revenue in the FY 2020 operating budget comes from passenger revenue. The remaining amount comes from a combination of commercial revenue and state and federal resources. The budget includes an additional $150 million in general fund support for a total subsidy of $457.5 million, the largest general fund subsidy to NJ Transit in the state’s history. Of this, $75 million will replace diversions and $75 million represents new direct funding, reflecting Gov. Phil Murphy’s commitment to providing additional funding to help meet the operating needs of the agency.
The capital program funds continue state-of-good-repair investments in transit stations and infrastructure, investments in the Northeast Corridor, fare modernization, safety initiatives, bus and rail car purchases, Positive Train Control installation, system expansion and support for local mobility programs.
Local Transportation Programs
For the local mobility programs, NJ Transit works with 21 other counties to fund community transportation programs. The board of directors approved the funding for the following programs:
• $18.5 million from the Casino Revenue Tax Fund to operate the Senior Citizen and Disabled Resident Transportation Assistance Program (SCDRTAP);
• $9.4 million for Federal Transit Administration (FTA) Section 5310 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 $1.7 million in state funding to support local matching fund requirements;
• $5.4 million for FTA Section 5311 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;
• $130,339 in federal funding for the Rural Transit Assistance Program, which provides training and technical assistance for small transit operators receiving funding through NJ Transit’s local programs; and
• $5.3 million for the New Jersey Jobs Access and Reverse Commute (NJ-JARC) Program under which counties provide public transportation services to help residents obtain community transportation to employment opportunities. $6 million in other funds passed through to recipients.
Operating Budget
The operating budget will dedicate 61 percent of its funds to labor costs and fringe benefits. Eleven percent of the budget will account for contracted transportation services, and 28 percent will go towards materials, fuel and power, utilities and outside services. The budget also includes expansion of personnel.
When it comes to improving the customer experience, the budget allocated $2.7 million for 22 additional bus operators and support staff to accommodate nearly 30,000 new service hours, which will be targeted mainly in the northern and southern markets. The light rail system will also see an added boost with $482,000 for five additional operators on the Newark Light Rail to address staff shortages.
To further improve the customer experience, $1.2 million will go towards a more dedicated support team at the call center. In addition, additional staff will be hired to support the recently created Customer Experience Unit, committed to proactively assessing all of the customer touchpoints throughout the customer journey to ensure deficiencies are promptly addressed and customer needs are met.
The budget also includes 14 million in funding to hire additional trainees for the Locomotive Engineer Training Program (LETP) and Assistant Conductor Training Program (ACTP). Between LETP and ACTP, NJ Transit anticipates four engineer training classes and two assistant conductor training classes to address staff shortages.
The New Jersey Transit Police Department will use $1.8 million to expand its ranks with 19 additional officers dedicated to patrolling our system. The Office of System Safety will also hire five new staff to conduct more frequent random rides, in order to better assess system safety and operating procedures.
Capital Program
The FY 2020 capital program 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 capital budget includes approximately $326 million to be invested in rail infrastructure improvement needs, including $58 million for bridges, which includes $41 million for Raritan River Bridge replacement; $24 million to fund electric traction and signal improvements, $95 million for the County Yard Expansion, $18 million to fund the Track Program, $36 million for Mason Building 9 Substation Replacement and $51 million for Portal North Bridge. The budget also directs $65 million to be invested in the capital lease for the Passenger Rail Investment & Improvement Act (PRIIA) payments to Amtrak.
The capital program continues to invest in system expansion including $33 million for Hudson-Bergen Light Rail Northern Branch extension; $8.8 million for the Lackawanna Cutoff project; and $2 million for Transit Rail initiatives such as engineering work to support the Glassboro to Camden light rail line.
The program also supports continued investment in rolling stock renewal, with $94 million invested in rail rolling stock improvements which include $17 million to continue funding for locomotive overhauls to maintain reliability and $75 million for the purchase of 113 Multilevel III vehicles. On the bus fleet, $100 million will go towards Cruiser Bus Replacements and $7 million for Access Link Bus Replacement. Additionally, there will be $19 million invested in bus infrastructure improvements which includes $13 million for parking deck replacement and $4 million for passenger facilities improvements.
Approximately 53 percent of the capital budget comes from the Transportation Trust Fund (TTF), with 42 percent from federal funds and 5 percent from other sources.
