In response to the financial strain caused by the ongoing impact of the COVID-19 pandemic, NJ TRANSIT has put forth a proposal for a systemwide fare adjustment. The plan aims to address the agency's budget deficit, ensuring the continuation of service without compromising its quality.

Since 2015, NJ TRANSIT has prioritized improving service performance and enhancing the customer experience while keeping fare prices stable. The agency has introduced additional services on over 100 bus routes, absorbed the costs of operating services previously handled by private carriers, and implemented various improvements, such as a redesigned mobile app and new fare payment technologies. Furthermore, NJ TRANSIT has focused on safety and security, including implementing Positive Train Control in 2020 and expanding the presence of transit police officers throughout the system.

Despite NJ TRANSIT's efforts to maintain service levels, the pandemic's impact resulted in reduced ridership and a staggering loss of nearly $2 billion in farebox revenue. The agency had responsibly utilized federal COVID relief funding to sustain full service levels, but those funds are expected to be exhausted by Fiscal Year 2025 (FY25), which runs from July 1, 2024, through June 30, 2025.

During the preparations for the FY25 budget, NJ TRANSIT conducted an internal assessment to identify potential cost reductions and revenue enhancements. As a result, the agency has identified $44 million in cost reductions and an additional $52 million in revenue enhancements, which will significantly reduce the projected FY25 deficit and help offset non-discretionary cost escalations.

However, the internal savings and revenue enhancements alone cannot fully eliminate the remaining budget gap of $106.6 million. In order to bridge this gap and prevent service level reductions, NJ TRANSIT is proposing a systemwide fare adjustment of 15 percent, which would take effect on July 1, 2024. This proposal also includes annual systemwide fare increases of 3% starting from July 1, 2025, and each subsequent year. The agency has assured passengers that no fare will increase by more than 3% annually.

To ensure public participation, NJ TRANSIT has scheduled 10 public hearings in 10 different New Jersey counties, with both morning and evening sessions available for attendees. These hearings, starting from Monday, March 4, 2024, through Friday, March 8, 2024, will provide an opportunity for the public to learn more about the proposed fare adjustment and offer their comments. Additionally, members of the public can submit their comments online, via postal mail, or email.

NJ TRANSIT emphasizes that all public hearing locations are accessible for individuals with disabilities. Those requiring accommodations should contact the Public Hearing Office by Friday, February 16, 2024, to make the necessary arrangements.

The public comment period will remain open until 11:59 p.m. on Friday, March 8, 2024. Following the public hearings and the consideration of public feedback, the NJ TRANSIT Board of Directors will evaluate the fare adjustment plan.

NJ TRANSIT recognizes the necessity of addressing the budget deficit to ensure the continuity of high-quality and reliable transportation services for the people of New Jersey. The proposed fare adjustment, alongside cost reductions and revenue enhancements, aims to create a fully funded operating budget for FY25 without compromising service levels.