The Governor’s FY2020 Budget Includes an Increase of $100 Million in the State General Fund Subsidy for the Agency and a Commitment to No Fare Hikes Based on its Passage
WOOD-RIDGE— Governor Phil Murphy today joined with legislators and state transportation leaders to highlight critical investments that his FY2020 budget proposal will make in NJ TRANSIT. After nearly a decade of fiscal mismanagement and disinvestment in the agency, Governor Murphy’s budget will bring renewed focus to providing safe and reliable bus and rail travel to give New Jersey residents and commuters the transportation network they deserve.
“New Jersey is a densely populated state situated between two major population and industry centers—New York City and Philadelphia. We need to get NJ TRANSIT right to make sure that people can get around our state and get to work without the constant fear of delay or cancellation,” said Governor Murphy. “This budget continues this administration’s commitment to getting NJ TRANSIT on the right track and to making New Jersey a national leader in transportation.”
“Getting NJ TRANSIT back on track is a long-term effort,” said Transportation Commissioner and NJ TRANSIT Board Chair Diane Gutierrez Scaccetti. “Since the start of his administration, Gov. Murphy has made it a priority to provide the resources and make the changes necessary to provide our customers a transit system they can rely on to take them where they want to go, when they need to get there.”
“Governor Murphy’s continued commitment to NJ TRANSIT has been crucial to our efforts to begin restoring the transit system into the world-class organization our customers deserve,” said NJ TRANSIT Executive Director Kevin Corbett. “With the resources the Governor has proposed, we will expand upon the successes we achieved last year with a continued focus on our core mission of providing safe and reliable transportation throughout New Jersey.”
Governor Murphy’s FY2020 budget seeks to build on progress made at NJ TRANSIT over the past 14 months through a commitment to adequate funding and oversight. Under the proposed budget the agency stands to receive a $100 million increase over FY2019, bringing the total to $407 million in General Fund support. Of this, $75 million will replace diversions from other sources and $25 million represents new direct funding. This historic investment will further rectify the chronic underfunding of the past decade to make public transit reliable for commuters. The Governor has also committed to sparing NJ TRANSIT customers from fare hikes in FY2020 if his budget is passed.
Specifically, the Administration is seeking to eliminate diversions that were included in the final FY2019 budget. The Administration will reduce the transfer of Turnpike funds by $25 million, from $154 million to $129 million, which matches the Governor’s original FY2019 budget proposal. The Administration also proposes to eliminate a $50 million diversion from the Transportation Trust Fund’s capital reserve account. As part of a focus on responsible budgeting and fiscal prudence, the Governor’s commitment to ending these funding diversions represents a significant shift from past practices.
“As his FY2020 budget proposal makes clear, Governor Murphy is deeply committed to rebuilding NJ TRANSIT and putting the needs of New Jersey’s commuters first,” said ATU State Chairman Ray Greaves. “I applaud the Governor for the investments he has pledged, and for his support for the men and women who operate both trains and buses safely and efficiently.”