On Wednesday, NJ TRANSIT announced it would begin public hearings on a proposed systemwide 15 percent fare adjustment needed to close a $106.6 million budget gap.
The agency said the increase was needed to fully fund its 2025 operating budget without reducing service levels. In July of last year, the agency said its preliminary estimates for the FY25 budget would have a deficit of $119 million. Through a combination of $44 million in cost reductions, along with $52 million in revenue enhancements, the agency said it was reducing the original deficit and offsetting some mandatory, non-discretionary cost escalations.
Still, the agency said, the end of federal COVID-relief funding, increased costs due to inflation and other factors, and low ridership since COVID have meant even cost-saving measures were not enough to eliminate the deficit.
The proposed rate hikes would go into effect on July 1, 2024, and include an increase in one way bus fares from $1.60 to $1.80, an increase on a one-way rail fare from Philadelphia to Pennsauken from $4.25 to $4.85.
The agency will hold 10 scheduled public hearings across New Jersey including both morning and evening sessions, starting on Monday, March 4, 2024, through Friday, March 8, 2024, when the public will be given the opportunity to learn more about the fare adjustments and make comments before the plan is sent to the NJ Transit Board of Directors. Additional comments may be submitted online, or via postal mail, the agency said. The public comment period will end at 11:59 p.m. on March 8.