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Great Seal of the State of New Jersey

FY 2016 - 2025 Statewide
Transportation Improvement Program


a. Overview Back to Top

This document is the Statewide Transportation Improvement Program (STIP) for the State of New Jersey for federal fiscal years 2016 (beginning October 1, 2015) through 2025 (ending September 30, 2025).

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

Federal legislation requires that each state develop one multimodal STIP for all areas of their state. In New Jersey, the STIP consists of a listing of statewide line items and programs, as well as three regional Transportation Improvement Programs (TIPs), which were developed by three Metropolitan Planning Organizations (MPOs) covering the state. Those three TIPs contain local and state highway projects, statewide line items and programs, and 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 (4) years of the planning period. It also includes a priority list of projects to be funded over an additional six (6) years.
  2. It is fiscally constrained for the entire 10 years (A detailed discussion of fiscal constraint issues is found in subsection “i”).
  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 expansive descriptive information.
Finally, the STIP is a 10-year plan that is fiscally constrained based on federal resources remaining flat for the NJDOT and NJ TRANSIT. State resources were assumed to remain flat in FYs 2016 through 2025. State funding consists of the Transportation Trust Fund (TTF), and Port Authority of New York and New Jersey (PANYNJ) funding resources.

b. Performance-based Planning and Asset Management Back to Top

In January 2008, the NJDOT implemented an Asset Management policy. This policy is the official institutional approach to managing infrastructure assets, and making capital investment decisions related to these assets. This approach serves to support and complement the 10-year Capital Investment Strategy (CIS), the 10-year STIP, the annual Transportation Capital Program, and the biennial Study and Development Program.

The NJDOT recognizes that there are ever-increasing challenges to funding transportation improvements. Asset management offers an alternative to focusing solely on problem spots and/or the worst conditions. The NJDOT defines asset management as, “the systematic process of maintaining, upgrading, and operating physical assets cost-effectively”.

Recently, Performance-based Planning and Performance Management are terms used in relation to the broader use of performance to manage and improve the transportation system. Asset Management focuses on the subset of Performance-based Planning and Performance Management related to physical assets. However, the NJDOT has used, and is continuing to use, a Performance-based Planning approach to make capital investment choices. The NJDOT continues to seek out, and utilize, the best data and predictive models, to make the most effective, efficient and informed investment choices.

c. Public Participation Process Back to Top

New Jersey is completely covered by its three MPOs: the Delaware Valley Regional Planning Commission (DVRPC); the South Jersey Transportation Planning Organization (SJTPO); and the North Jersey Transportation Planning Authority Inc. (NJTPA). This STIP incorporates their three separate TIPs without modification.

Each MPO has a public participation process for their regional transportation plan, TIP and conformity determination. The state makes copies of the STIP available at each MPO public meeting, and representatives from the NJDOT and NJ TRANSIT are present to answer questions and concerns raised by the public about the programs. The public comment period for each MPO TIP, and the STIP, runs for 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 (LRTP). New Jersey’s LRTP, Transportation Choices 2030, was prepared and made available to the public in October 2008, and was submitted to the FHWA and the FTA in January 2010, following a period of public review and for addressing comments.

The NJDOT and NJ TRANSIT collaborated to prepare the LRTP, Transportation Choices 2030. The agencies conducted 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, and; identify needs and resources. The results of that work have been posted on the Transportation Choices 2030 website, so they are an easily accessible source of information on the development of the LRTP. The website also provides an opportunity for the public to offer comments on the LRTP to the NJDOT and NJ TRANSIT.

Transportation Choices 2030 provided the foundation for development of the Statewide Capital Investment Strategy (SCIS), which shaped the investment priorities for this STIP. The SCIS functions as an instrument that links the LRTP to the 10-year capital plan (STIP), by connecting broad goals to specific investment choices. Within the context of an asset management approach, the SCIS guides the selection of projects and programs to reduce the backlog of deficiencies, to improve the condition of the transportation system and to achieve the best possible performance. Thus, both the SCIS and the STIP serve as mechanisms to achieve the vision of the LRTP and, therefore, the projects and programs in the STIP are consistent with the LRTP, Transportation Choices 2030.

e. Conformity for MPO Plans and Programs Back to Top

The MPO Regional Transportation Plans are subjected to conformity analysis in order to demonstrate that each 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 conforms to the regional transportation plans and will also have a positive impact on air quality.

f. Congestion Management Process Back to Top

All projects in this STIP that will result in a significant increase in carrying capacity for single occupant vehicles are supported by a fully operational congestion management process, in place at each MPO.

g. Development of the STIP Back to Top

This STIP is the product of months of staff work, and deliberations, involving the NJDOT, NJ TRANSIT, county and municipal transportation planners and engineers, other transportation providing 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 MPOs:
  • NJTPA, covering Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren counties;
  • DVRPC, covering Burlington, Camden, Gloucester, and Mercer counties;
  • SJTPO, covering Atlantic, Cape May, Cumberland, and Salem counties.
The process of building the current STIP began in the fall of 2014, with intensive staff work by the NJDOT, NJ TRANSIT, and the MPOs.

All projects that were identified as potential candidates for inclusion in the regional TIPs 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 the NJDOT, NJ TRANSIT, and the MPOs. Each project was then assigned a priority-ranking, based on the extent to which it would advance identified regional and statewide objectives. Such objectives are set forth in; the STIP, the LRTP (Transportation Choices 2030), the three MPO Regional Transportation Plans, the SCIS, air quality objectives, and the broad social and economic goals of the state Development and Redevelopment Plan. The NJDOT and NJ TRANSIT 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. The 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 Draft Transportation Capital Program Fiscal Year 2016 by the NJDOT and NJ TRANSIT in March 2015, and for preparing TIPs for further analysis by each of the MPOs. Projects in the STIP and three MPO’s TIPs are consistent with the three MPO Regional Transportation Plans.

h. STIP Modifications and Amendments Back to Top

The STIP may be modified or amended 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. The MOU was fully executed in October 2012. STIP changes, once approved by the MPOs in concert with either NJ TRANSIT or the NJDOT, are forwarded to the FHWA and/or the FTA for their approval, when necessary. The modified and amended STIP is available for viewing through the eSTIP system, which is available on the NJDOT website.

i. 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 FHWA, the FTA, the TTF and the PANYNJ. The NJDOT and its transportation planning partners (NJ TRANSIT, NJTPA, DVRPC, SJTPO, FHWA, and FTA) have developed an estimate of $14,154.2 million in available state, federal and other revenues to support the state’s transportation budget during the four fiscal years from 2016 through 2019. (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, the NJDOT and NJ TRANSIT have incorporated an additional six (6) years of constrained resources into the 10-year STIP. The 10-year total is estimated to be $32,618.3 million. This amount constitutes the funding expected to be available to support the whole FY 2016 - FY 2025 STIP. These revenue estimates were developed cooperatively by the NJDOT, NJ TRANSIT, and New Jersey’s three MPOs, in full consultation with the FHWA and the FTA, at a meeting held on October 28, 2014.

Tables 1 through 5 list these amounts by year and by funding category, and compares them to the actual amounts programmed in the TIPs and STIP. Following are the revenue assumptions used in developing these tables.
  1. Dollar amounts shown in federal funding categories are based, except as otherwise noted below, on the Moving Ahead for Progress in the 21st Century Act (MAP-21) federal-aid apportionment tables, or equivalent data, obtained from the FHWA, the FTA, and the 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. Obligation authority applies only to FHWA formula funds, and has been approximately 8 to 10 percent below appropriated levels.
  2. Construction cost estimates are escalated to the mid-point of construction to address “year of expenditure dollars.” The NJDOT uses several methods and tools to develop construction cost estimates including; historical bid-based estimating, historical percentages estimating, and the American Association of State Highway and Transportation Officials (AASHTO) project cost estimation software, to prepare detailed and long range cost estimates. The AASHTOWare project cost estimation software includes the ability to use historical pricing information in estimating new project costs. This historical pricing includes a programmed general default inflation factor that automatically calculates based on past pricing history. The NJDOT employs this feature where possible.
  3. Funds in the Surface Transportation Program (STP) and Transportation Alternatives Program (TAP) categories are broken down into the allocations and minimums required by federal law.
  4. “High Priority” funds and “demo” funds are shown only as authorized by federal legislation. These Congressional earmark projects are shown with the fund type “DEMO” in the STIP.
  5. The state will provide $1.6 billion in FY 2016 and FY 2017 to support the capital program. For programming purposes, it is assumed that the NJDOT’s share of state funds is $743.5 million of TTF and $353 million of PANYNJ in FY 2016, and $1,017.5 million of TTF in FY 2017. NJ TRANSIT’s share of the TTF is $503.5 million in FY 2016 and $582.5 million FY 2017.
  6. The following transfers are programmed between the NJDOT and NJ TRANSIT:

    1. For FYs 2016-2019, $50 million of FHWA Congestion Management Air Quality (CMAQ) funds, $50 million of STP funds, and $1 million of TAP funds are to be transferred annually for use by NJ TRANSIT;
    2. For FYs 2016-2018, $86 million of FHWA STP sub-allocated funds are to be flexed annually to NJ TRANSIT in return for $86 million of TTF funds for local project support by the NJDOT;
    3. In FY 2016, $32.5 million of FHWA STP funds are to be flexed to NJ TRANSIT in return for $32.5 million of TTF funds for use by the NJDOT.

  7. In FY 2006, the NJDOT used a federal financing program (Grant Anticipation Revenue Vehicles, or “GARVEEs”) to finance Route 52, Causeway Replacement Contract A in Ocean City. This project was selected for GARVEE funding because of; the poor condition of the four bridges, the delay in construction that would be caused by waiting for conventional financing, the cost and annoyance of continual emergency repairs, and the importance of the causeway as an emergency evacuation route. This proposed STIP funds the final two years of bond payments related to that project.
  8. The Route 278 Goethals bridge replacement is a Public-Private Partnership (P3), awarded by the PANYNJ to the NYNJ Link Partnership, which provides for a 40-year design-build-finance-maintain contract to replace the 80 plus year old bridge with a new state-of-the-art cable-stayed bridge.
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 2016 and FY 2017 to be considered fiscally constrained. Such 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 2016 and FY 2017 are based on the current federal-aid apportionment tables allocations or equivalent data obtained from the FHWA, the FTA and the FAA, as appropriate, and are therefore considered available. All TTF funding for FY 2016 will be appropriated July 1, 2015. Sufficient funds are available or committed to cover funding of projects and programs in the FY 2016 - FY 2017 period. New Jersey’s transportation authorities also use their own revenues to fund various projects classified as “projects of regional significance.” These projects are listed in Section VIII.

The state of New Jersey has made a significant commitment to public transportation through continued operating support from the state’s general fund. Since the inception of NJ TRANSIT, the state has contributed nearly $7.3 billion of operating assistance, over $3.0 billion in the last 10 years alone. During the same 10-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 TTF.

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 for 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,” “STP-SJTPO,” and “TAP.” The second exception for 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 TIPs, the STIP, and legislative approval of the annual transportation 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 for 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 the NJDOT, NJ TRANSIT, local government representatives, 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 payments to third parties regarding matters of right-of-way and utility relocations. The implementing agency costs include activities such as; inspection, testing, equipment and salary costs.

The current STIP and Capital Program provides funding for the NJDOT and NJ TRANSIT employee salaries, leave and fringe benefits, overhead, and other administrative costs which benefit the development and delivery of their transportation programs. This funding is provided from both federal-aid and state TTF sources, and these funds are allocated for multi-year and previously authorized project costs. Federal-aid in support of employee and administrative costs is programmed on an individual project basis. TTF funding is programmed as a single item under the heading of “Program Implementation Costs, NJDOT”. For NJ TRANSIT, TTF funding is allocated to specific programs.

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.

j. Advance Construction Projects Back to Top

Advance Construction (AC) is a procedure to advance a federally funded project phase into the current fiscal year and implement that phase with other than federal funds. The 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 TIPs 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. The MPOs and the state agree that 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.

k. Multi-Year Funding Back to Top

Multi-year funding is an innovative financing technique to program and authorize only that portion of a given project phase necessary to support reimbursement of planned cash outlays for a given year. Remaining portions of the project phase are programmed in subsequent years. In the first fiscal year of funding for a m