You couldn’t actually see a looming fiscal cliff in the State House meeting room Wednesday, but it was there in the pages of New Jersey Transit’s proposed budget. With ridership still 25% off pre-COVID-19 levels and federal pandemic aid running out fast, this is an agency on the brink of a billion-dollar shortfall. “This is largely due to year-over-year escalating contractual obligations, reduced general fund subsidy, and lagging fare revenues due to lower ridership,” said Kevin Corbett, CEO of NJ Transit.
Transit officials told the Assembly Budget Committee that its dire finances need some serious action. Agency executives are considering several fixes, including corporate consolidation, adjusting fares and realigning services. Fares haven’t increased in almost a decade. “Maintaining a full, frequent reliable service is key to getting people back and to avoiding a death spiral — reducing service to match ridership at that time, which results in a continuous cycle of diminishing riders and service levels,” Corbett said.
Given the financial issues the agency faces, Republicans criticized its decision to move its headquarters to a more expensive lease in Newark and questioned whether politics had influenced the choice. NJ Transit’s board chairwoman denied that, saying they made the decision that was best for the agency.
