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Great Seal of the State of New Jersey

FY 2010 - 2019 Statewide
Transportation Improvement Program


a. Overview Back to top

This document is the Statewide Transportation Improvement Program for the State of New Jersey for federal fiscal years 2010 (beginning October 1, 2009) through 2019.

The Statewide Transportation Improvement Program (STIP) serves two purposes. First, it presents a comprehensive, one-volume guide to major transportation improvements planned in the State of New Jersey. The STIP is a valuable reference for implementing agencies (such as the New Jersey Department of Transportation and the New Jersey Transit Corporation) and all those interested in transportation issues in this state. Second, it serves as the reference document required under federal regulations (23 CFR 450.216) for use by the Federal Highway Administration and the Federal Transit Administration in approving the expenditure of federal funds for transportation projects in New Jersey.

Federal legislation requires that each state develop one multimodal STIP for all areas of the state. In New Jersey, the STIP consists of a listing of statewide line items and programs, as well as the regional Transportation Improvement Program (TIP) projects, all of which were developed by the three Metropolitan Planning Organizations (MPOs). The TIPs contain local and state highway projects, statewide line items and programs, as well as public transit and authority sponsored projects.

This STIP conforms to—and in many cases exceeds—the specific requirements of the federal regulations:
  1. It lists the priority projects programmed for the first four years of the planning period. It also includes a priority list of projects to be funded over an additional six years.
  2. It is fiscally constrained for the entire ten years. A detailed discussion of fiscal constraint issues is found in subsection “l” below.
  3. It contains all regionally significant projects regardless of funding source.
  4. It contains all projects programmed for federal funds.
  5. It contains, for information, state-funded projects.
  6. It contains expanded descriptive information—considerably more than required by the federal regulations—as described in subsection “n” below.
Finally, the STIP has been expanded into a 10 year plan that is fiscally constrained based on holding federal resources flat for NJDOT with NJ Transit using a 4% rate of growth. State resources were held to a 3% rate of growth starting in FY 2012.

b. Asset Management Policy Back to top

Since January of 2008, the N. J. Department of Transportation (NJDOT) has had in effect an Asset Management policy. This policy is the official, institutional approach to managing infrastructure assets and making capital investment decisions.

This approach serves to support and complement the 10 year Capital Investment Strategy, the 10 year Statewide Transportation Improvement Program, the annual Transportation Capital Program, and the biennial Study and Development Program.

NJDOT recognizes that there are ever-increasing challenges to funding transportation improvements. Asset Management offers an alternative to focusing solely on problem spots or worst conditions. The Department will adhere to the definition of Asset Management as the systematic process of maintaining, upgrading, and operating physical assets cost-effectively.

NJDOT will utilize an Asset Management approach to operate, preserve and improve New Jersey’s infrastructure assets, focusing on roads, bridges and culverts, facilities, and equipment. An Asset Management approach will also be utilized for investments in safety and congestion-reduction.

NJDOT has established an Asset Management Steering Committee made up of senior leadership that will guide implementation of NJDOT’s Asset Management Program.

The Steering Committee has identified six initial goals for NJDOT:
  • Institute a Departmental Asset Management Plan that articulates existing asset condition levels or system performance and establishes our plan to maintain or improve them.
  • Establish an easily accessible, on-line, one-stop location to access data on asset conditions.
  • Have a project delivery pipeline that contains the right quantity and mix of projects.
  • Make project decisions that are data driven, but decided in close collaboration and coordination with Department staff and external stakeholders.
  • Ensure that the Department’s management systems support the Department’s decision-making needs.
  • Foster greater knowledge and understanding of Asset Management best practices at NJDOT through educational opportunities and internal communications.

c. Public participation process Back to top

New Jersey is completely covered by three Metropolitan Planning Organizations (MPOs): the Delaware Valley Regional Planning Commission (DVRPC), the South Jersey Transportation Planning Organization (SJTPO), and the North Jersey Transportation Planning Authority Inc. (NJTPA). The STIP includes the three MPO Transportation Improvement Programs (TIPs) without modification.

Each MPO has a public participation process for their Transportation Plan, TIP and conformity determination. The state makes copies of the STIP available for each MPO public meeting and representatives from the NJDOT and NJ TRANSIT are present to answer questions and concerns raised by the public on the programs. The public comment period for each MPO TIP and the STIP runs for a period of 30 days.

d. Statewide Transportation Plan Back to top

The Federal Statewide Planning Rule requires that the STIP contain projects consistent with the statewide long-range transportation plan. New Jersey’s statewide plan was prepared and submitted to the State Legislature on March 1, 2001. Following a public review and addressing of comments, the final plan was submitted to FHWA and FTA in January 2002.

Unlike the previous plan, Transportation Choices 2025 is more than a “policy plan.” It identifies future transportation needs and offers strategic direction on a systems level that is based on technical analysis, the use of alternative scenarios evaluation, and extensive public involvement. The Plan contains 5-, 10-, and 25-year elements to help guide the investment agenda for the state’s future transportation expenditures.

The process to develop Transportation Choices 2025 went far beyond typical planning efforts, incorporating website technology in concert with traditional methods in plan preparation, public involvement, and overall project management. Transportation Choices 2025 (pdf) offers valuable transportation information that is designed to encourage the exchange of information between users of the state’s transportation system and NJDOT.

The NJDOT and NJ TRANSIT have prepared a new draft of the Long Range Transportation Plan, Transportation Choices 2030 which will become the successor to Transportation Choices 2025. The agencies enlisted consultant assistance to conduct extensive public outreach and inter-agency coordination along with technical assessments to examine the state’s transportation system; describe a vision for the future; identify goals, objectives, strategies and actions; identify needs and resources; and develop a set of performance indicators and a reporting system to identify success at achieving the goals and objectives of the plan. Results of the work have been posted on the website so it can be an easily accessible source of information on the development of the Long Range Plan, as well as a way for the public to offer their input on the draft Long Range Transportation Plan to the NJDOT and NJ TRANSIT.

The developmental work for Transportation Choices 2030 provided the foundation for development of the FY 2010-2019 Statewide Capital Investment Strategy that shaped the investment priorities for this STIP. The projects and programs in the STIP are consistent with the Long Range Transportation Plan.

e. Conformity for MPO plans and programs Back to top

Each MPO Regional Transportation Plan has gone through a conformity analysis to demonstrate that each MPO Plan conforms to the State Implementation Plan (SIP). Each MPO TIP must be consistent with their conforming plan such that the regional emission analysis performed on the plan applies to their TIP. This determination means that the implementation of projects and programs in the MPO TIPs will have a positive impact in the aggregate on air quality. Since the STIP contains the three MPO TIPs without modification, the implementation of the STIP, in aggregate, will also have a positive impact on air quality.

f. Advance construction projects Back to top

Advance Construction (AC) is a procedure to advance a federally funded project(s) into the current fiscal year and implement it with other than federal funds. Use of AC is subject to the availability of other than federal funds (e.g., state funds) in the year in which the project is to be implemented, and the availability of federal funds in the year in which the AC project is to be converted to a regular federal-aid project. AC projects are to be listed individually in the TIP and STIP in both the year that the project is to be implemented and the year in which the conversion is to take place. Appropriate notification will be provided in the TIPs and STIP so it is clearly understood that these “other funds” are available and that future federal funds may be committed to these AC projects. Fiscal constraint must be maintained throughout this process for both the implementing and conversion years.

When AC is used in the development of the TIP/STIP, or to amend or modify the TIP/STIP, the MPO and the state will explain the procedure following the public participation procedures adopted by the MPO. The MPO and the state agree that in the development and processing of the TIP/STIP, the inclusion of an AC project in the TIP/STIP in the year the project is to be implemented signifies that the project can be converted to federal funding when federal funds become available and the decision is made to convert.

g. Multi-Year Funding Back to top

Multi-year funding is a process whereby the costs of a phase of work of a project are spread out over several STIP years. Each fiscal year of the STIP will show the available federal funding needed that year to complete a portion of a particular phase of work. In the first fiscal year of funding for a multi-year funded phase of work, the Department will only seek federal authorization for that portion of the federal funds shown in that fiscal year in the STIP. The remaining balance of funds for that particular phase of work will appear in the STIP in the fiscal year the Department intends to request Federal authorization for the remaining funds needed for continuation/completion of the phase/project. Each multi-year federal funded project will be submitted to FHWA with the condition that authorization to proceed is not a commitment or obligation to provide federal funds for that portion of the undertaking not fully funded herein. Fiscal constraint will be maintained at all times throughout this process.

In the event that federal funding is not available in any fiscal year, for a multi-year funded phase of work, the Department will take full responsibility to fund that portion of the phase of work, as stated under the provisions of Section 13 of P.L. 1995, c.108. It will also be the Department’s responsibility to fund any portion of a multi-year funded phase of work that goes beyond the life of the current federal highway act.

Table 11 shows current fiscal year and future fiscal year funding needed to complete multi-year federally funded highway projects. Table 12 shows current fiscal year and future fiscal year funding needed to complete multi-year state funded highway projects. The individual project STIP pages contain specific information for these projects such as a detailed project description, project funding source and a total estimated project cost.

Table 13 shows current fiscal year and future year funding and the estimated total funding needed to complete federal full funding grant agreements and equipment lease payments for transit projects.

h. Development of the STIP Back to top

This Statewide Transportation Improvement Program is the product of months of staff work and deliberations involving the New Jersey Department of Transportation (NJDOT), the New Jersey Transit Corporation (NJ TRANSIT), county and municipal transportation planners and engineers, other transportation implementing agencies, the public and elected officials at the state, county, and municipal levels. The main decision-making forums for selecting projects for this program were the state’s three metropolitan planning organizations:
  • The North Jersey Transportation Planning Authority (NJTPA), covering Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren counties.
  • The Delaware Valley Regional Planning Commission (DVRPC), covering Burlington, Camden, Gloucester, and Mercer counties.
  • The South Jersey Transportation Planning Organization (SJTPO), covering Atlantic, Cape May, Cumberland, and Salem counties.
The process of building the current STIP began in the summer of 2008, with intensive staff work by NJDOT, NJ TRANSIT, and the MPOs.

All projects that were identified as potential candidates for inclusion in the regional transportation improvement programs of each of the three MPOs were subjected to intensive screening to verify project scope, status, schedule, and cost. The resulting “pool” of projects was analyzed independently by NJDOT, NJ TRANSIT, and the MPOs to assign each project a priority based on the extent to which it would advance identified regional and statewide objectives, such as objectives set forth in the state and regional long-range transportation plans, the New Jersey Capital Investment Strategy, air quality objectives, and the broad social and economic goals of the State Development and Redevelopment Plan. NJDOT developed and circulated revenue projections for planning purposes to each of the MPOs, based on the best current assessment of available state, federal, and other funds. NJDOT, NJ TRANSIT and each of the three MPOs entered into intensive discussions to negotiate a list of deliverable transportation projects that best fit the composite statewide and regional priorities within a financially constrained program. These negotiated project lists were used as the basis for publishing the Fiscal Year 2010 Proposed Transportation Capital Program by NJDOT and NJ TRANSIT on April 13, 2009, and for preparing TIPs for further analysis by each of the MPOs.

i. Congestion Management System Back to top

All projects in this STIP that will result in a significant increase in carrying capacity for single occupant vehicles result from a fully operational Congestion Management System (CMS) in place at each MPO.

j. STIP Modifications and Amendments Back to top

The STIP may be modified or amended at anytime according to the procedures set forth in the Memorandum of Understanding (MOU) for TIP/STIP changes between the three MPOs, NJ TRANSIT, and the NJDOT. These MOUs were fully executed between August of 2006 and June of 2007. STIP changes, once approved by the MPOs in concert with either NJ TRANSIT or the NJDOT, are forwarded to the FHWA and/or FTA for their approval, when necessary.

k. Non-Federal Match Back to top

Toll Credit Toll Credits were created in the Transportation Equity Act for the 21st Century (TEA-21) and are to be used as a credit toward the non-Federal matching share of programs authorized by Title 23 (except for the emergency relief program) and for transit programs authorized by Chapter 53 of Title 49.

The amount of credit earned is based on revenues generated by the toll authority (i.e., toll receipts, concession sales, right-of-way leases or interest), including borrowed funds (i.e., bonds, loans) supported by this revenue stream, that are used by the toll authority to build, improve or maintain highways, bridges or tunnels that serve interstate commerce.

The federal government has allowed the state and local governments to use toll credits to be part of the 20% local matching funds in regard to transit grants.

This results from the recognition that different modes of transportation are interconnected. Capital expenditures to reduce congestion in a particular corridor benefit all modes in that corridor, be they automobiles, transit buses, or a rail system.

Urban Core The Urban Core includes several critically important mass transit projects that integrate transit services in northern New Jersey. The Urban Core includes the Newark-Elizabeth Rail Link and Hudson-Bergen Light Rail, among several other projects. The Urban Core was first authorized in the Intermodal Surface Transportation Efficiency Act (ISTEA) in 1991, reauthorized in The Transportation Equity Act for the 21st Century (TEA-21) in 1998, and reauthorized in the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) in 2005. As provided in Section 3031(b) of ISTEA, NJ TRANSIT may use locally funded projects, such as the Kearny and Waterfront Connections and New Jersey Turnpike projects, as local match for the Hudson Bergen LRT and other Urban Core projects.

l. Financial plan Back to top

Federal law and regulations require that the STIP be fiscally constrained for the first four years. Specifically, “planned federal aid expenditures” cannot exceed “projected revenues.” The major sources of funding identified in this document are the Federal Highway Administration (FHWA), the Federal Transit Administration (FTA), and the New Jersey Transportation Trust Fund (TTF). NJDOT and its transportation planning partners (NJ TRANSIT, North Jersey Transportation Planning Authority, Delaware Valley Regional Planning Commission, South Jersey Transportation Planning Organization, Federal Highway Administration, and Federal Transit Administration) have developed an estimate of $13.2 billion in available state, other and federal revenues to support the state’s transportation budget during the four fiscal years from FY 2010 through FY 2013. (For planning purposes, state revenues are estimated on the basis of state fiscal years, which begin on July 1, and federal revenues are estimated on the basis of federal fiscal years, which begin on October 1.) In addition, NJDOT and NJ Transit have incorporated an additional six years of constrained resources into the ten-year STIP. The ten-year total is estimated to be $34.1 billion. This amount constitutes the funding expected to be available to support the whole FY 2010-FY 2019 STIP. These revenue estimates were developed cooperatively by NJDOT, NJ TRANSIT, and New Jersey’s three MPOs, with full consultation with FHWA and FTA, in a series of meetings in September 2008.

Tables 1 through 5 set out these amounts by year and by funding category and compare them to the actual amounts programmed in the TIPs and STIP. Following are the revenue assumptions used in developing this table:
  1. Dollar amounts shown in federal funding categories are based, except as otherwise noted below, on SAFETEA-LU federal-aid apportionment tables or equivalent data obtained from the Federal Highway Administration (FHWA), Federal Transit Administration (FTA), and Federal Aviation Administration (FAA), as appropriate. It should be noted that the apportionment tables are greater than the obligation authority that will ultimately be provided.
  2. The Transportation Trust Fund has sufficient funds to fully fund projects in FY 2010 -FY 2011. The Legislature has replenished the Transportation Trust Fund (TTF) at the annual level of $1.6 billion in FY 2010-FY 2011. The Legislature must renew the TTF in FY 2012.
  3. Construction cost estimates are escalated to the mid-point of construction to address “year of expenditure dollars.”
  4. Funds in the Surface Transportation Program (STP) category are broken down into the allocations and minimums required by federal law.
  5. “High Priority” funds (and some remaining “demo” funds) are shown only as authorized by federal legislation.
  6. The New Jersey Transportation Trust Fund annually provides $1.6 billion in FY 2010-FY 2011 to support the Capital Program. For programming purposes, it is assumed that NJDOT’s share of the Transportation Trust Fund is $908 million in FY 2010 and $1 billion in FY 2011, and NJ TRANSIT’s share of the Transportation Trust Fund is $692 million in FY 2010, and $600 million in FY 2011. For planning purposes, we have assumed a 3% increase in the TTF in FY 2012 and FY 2013. Therefore, the project TTF share for NJDOT is $1.056 billion in FY 2012 and $1.087 billion in FY 2013 and $592.2 million in FY 2012 and $610 million in FY 2013 for NJ TRANSIT.
  7. In FY 2010-FY 2013, $75 million of FHWA CMAQ funding is to be “flexed” annually to NJ TRANSIT. An additional $75 million of highway funds will be flexed in FY 2010 and FY 2011 increasing to $100 million in FY 2012 and FY 2013 for the ARC project.
  8. In FY 2006, NJDOT began using a federal innovative financing program (Grant Anticipation Revenue Vehicles, or “GARVEEs”) to finance portions of its high-cost bridge program. NJDOT is facing a critical need to fund a series of these bridges – each costing more than $100 million to build – over the next several years. The projects are all eligible for federal aid, but due to their size would consume a major portion of the capital program in the year they are ready for contract award. GARVEE bonds are a mechanism offered by FHWA to address this type of problem. GARVEEs are in use in 22 states. Under this mechanism, FHWA authorizes a project agreement that reimburses the state for project debt service over a number of years rather than construction outlays. The state agency in turn issues GARVEE bonds which provide the funds to cover construction outlays. Future federal appropriations are pledged to pay debt service on the GARVEE bonds. GARVEE bond maturities are flexible, but a typical payback period is 12 years, which corresponds to two standard six-year federal authorization programs. The STIP assumes that GARVEE financing will be used on one project within the four-year funding window. Route 52 Contract A has been selected as the first project for GARVEE funding because of the poor condition of the four bridges on the causeway, the delay in construction that would be caused by waiting for conventional financing, the cost and annoyance of continual emergency repairs (including large pieces of concrete falling from the structures), and the importance of the causeway as an emergency evacuation route. Use of the GARVEE mechanism will enable this important project to go forward without a major impact on the use of federal funding in any one year and without a massive dislocation in the normal share of federal funding available in each of three MPO areas in the state. Although GARVEE funding requires the assumption of some debt over time, well under 10 percent of New Jersey’s expected annual federal funding will be encumbered under the proposed plan. The financing plan will also require debt service payments. However, the cost of debt service should be more than offset by avoidance of the costs of delay: recurring expenditures for maintenance and the possible increase in construction contract costs. GARVEE bonds are a proven financing mechanism and NJDOT expects no difficulty in the marketing of these instruments. However, in order to provide additional reassurance, NJDOT has identified resources from statewide Transportation Trust Fund programs (Unanticipated Design, Right of Way, and Construction Expenses, State and the Resurfacing Program) as emergency backing in the range of $87 to $93 million a year.
Because New Jersey is classified as a “non-attainment” area with regard to air quality, certain project funding must meet a federal standard of “available or committed” revenue in FY 2010 and FY 2011 to be considered fiscally constrained. These projects are those which are funded with federal resources and all other “projects of regional significance,” regardless of funding source. All federal funds in FY 2010 and FY 2011 are based on the current federal-aid apportionment tables, allocations or equivalent data obtained from FHWA, FTA and FAA, as appropriate and are therefore considered available. All Transportation Trust Fund funding for FY 2010 has been appropriated, and is therefore available. Sufficient funds are available and committed to cover funding of projects and programs in the FY 2010-FY 2011 period. Various projects of New Jersey’s transportation authorities are also classified as projects of regional significance. They are funded by authority revenues.

It should also be noted that the State of New Jersey annually appropriates approximately $75 million to NJDOT for operation and maintenance purposes. These funds are adequate for maintenance and operation of the system. In addition, both federal and state funds are allocated to NJDOT’s operations and maintenance forces for betterments to the system.

The State of New Jersey has shown a significant commitment to public transportation through operating support from the state’s general fund. Since the inception of NJ TRANSIT, the state has contributed over $6.5 billion of operating assistance, almost $3.0billion in the last ten years alone. During this last ten-year period, the state also has chosen to supplement that operating assistance with over $1 billion of funding allocated to transportation operations from the state’s general fund contribution to the Transportation Trust Fund. This TTF contribution to operations is approximately $103.2 million annually, and represents a continued strong commitment from the state to fund public transportation. The following below details those projects for FY 2010.

NJ TRANSIT FY 2010 TTF Operations
  Program FY 2009
Amount ($millions)
T32 Building Capital Leases
T09 Bus Capital Maintenance
T34 Rail Capital Maintenance

With two notable exceptions, federal and state funds are not “allocated” to—that is, required to be spent within the boundaries of—the state’s three MPOs. The first exception is STP funds, some of which are required under a formula in federal regulations to be allocated to MPOs. These allocated funds are shown in the following tables as “STP-NJTPA,” “STP-DVRPC,” and “STP-SJTPO.” The second exception is Trust Fund state aid funds, which are allocated on a county-by-county basis under a statutory and regulatory formula.

The actual budgeting of federal and state funds for projects within the MPO areas is a product of the development of the three regional transportation improvement programs, the statewide transportation improvement program, and legislative approval of the annual capital program. On a statewide basis, the cost of projects programmed for a particular fiscal year must equal the planned resources for that year. Each project must also be assigned to a funding category that is appropriate for the project and within which adequate funding is available. From year to year there may be significant variations in the amount of funds actually programmed within an MPO area, as needs and specific project implementation schedules dictate. These programming decisions are made on a cooperative basis with the participation of NJDOT, NJ TRANSIT, local government representatives, and other agencies (all of whom are members of the MPOs), the State Legislature, citizens’ groups, and the general public.

For the purpose of defining a project line item estimate in the STIP, each item includes an estimate of independent contractor costs to produce the project, an estimate of implementing agency costs anticipated in support of the development and delivery of the project, and any other payments to third parties in matters of right-of-way and utility relocations. The implementing agency costs include activities such as inspection, testing and equipment along with salary costs.

The current STIP and NJDOT capital program will provide funding for Departmental employee salaries, leave and fringe benefits, overhead, and other administrative costs which benefit the development and delivery of the transportation highway program. This funding is provided from both Federal-aid and NJ Transportation Trust Fund sources and these funds are allocated for multi-year and previously authorized project costs. Federal-aid in support of Departmental employee and administrative costs is programmed on an individual project basis, while NJ Transportation Trust Funds are programmed as a single item under the STIP heading of "Program Implementation Costs, NJDOT". The NJTTF commitment to Departmental employee costs and administrative expenses for FY 2010 of the STIP is established at $109,978,000. The Federal-aid commitment to these Departmental costs and expenses is not disclosed within individual STIP line items, but the Department estimates the annual commitment of Federal funds to be $105,000,000 for fiscal year 2010.

Table 6 shows the overall distribution of funds within the STIP by MPO.

Tables 7 through 10 provide detailed breakdowns of expenditures by funding category for each of the three MPOs and for statewide programs.

m. Financing transition projects Back to top

“Transition” projects are projects which are programmed for implementation in the current (FY 2009-FY 2018) TIP/STIP but which, for either scheduling or obligation authority limitation reasons, are not actually available for implementation until after October 1, 2009, when the planned (FY 2010-FY 2019) TIP/STIP takes effect. To provide a smooth transition between one TIP/STIP period and the next, New Jersey’s MPOs and appropriate state and federal agencies have agreed that the first 60 days after approval of the FY 2010-FY 2019 STIP will be considered a transition period, in which projects included in the FY 2009-FY 2018 STIP will be considered eligible for federal funding actions, even though they are not included in the FY 2010-FY 2019 STIP. This list of “Transition” projects is found in Section V of document and is based on current schedule information.

n. How to use this document Back to top

“Transition” projects are projects which are programmed for implementation in the current (FY 2009-FY 2018) TIP/STIP but which, for either scheduling or obligation authority limitation reasons, are not actually available for implementation until after October 1, 2009, when the planned (FY 2010-FY 2019) TIP/STIP takes effect. To provide a smooth transition between one TIP/STIP period and the next, New Jersey’s MPOs and appropriate state and federal agencies have agreed that the first 60 days after approval of the FY 2010-FY 2019 STIP will be considered a transition period, in which projects included in the FY 2009-FY 2018 STIP will be considered eligible for federal funding actions, even though they are not included in the FY 2010-FY 2019 STIP. This list of “Transition” projects is found in Section V of document and is based on current schedule information.

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  Last Updated:  September 15, 2009