In a move to address its severe financial crisis, the cash-strapped New Jersey Transit (NJT) board has approved a 15% fare increase set to take effect in July. Commuters using the railroads, bus routes, and light rail lines will bear the brunt of this fare hike, adding to their already mounting transportation expenses.

The unanimous decision by the NJ Transit Board comes after years of warnings from transit activists and government watchdogs, highlighting the failure of Governor Phil Murphy and Garden State lawmakers to secure the agency's finances in the face of declining post-pandemic ridership. These activists have long argued that funds meant for system repairs and upgrades have been diverted to cover operational costs, echoing the financial mismanagement that plagued New York in the 1970s.

Under the new fare structure, a monthly pass for the Morris-Essex Line will increase to $342 from $298. Local bus fares will rise from $1.60 to $1.80, while interstate bus fares from Jersey City to the Port Authority Bus Terminal will jump from $3.50 to $4. One-way train tickets from Princeton Junction to New York Penn will soar from $16 to $18.40.

The fare hike is projected to fill NJT's budget shortfall of $100 million in 2025. However, the agency's troubles are far from over, with deficits predicted to rise to nearly $780 million by 2026. Governor Murphy has proposed a new tax on large Garden State businesses to bridge part of this gap, but legislative approval is still required.

Meanwhile, New Jersey officials have mounted a legal and public challenge against New York's proposed congestion fee, which could impose a daily toll of $15 on drivers crossing into Manhattan beginning as early as June. Garden State politicians argue that this fee unfairly burdens New Jersey commuters and accuses New York of financing its transit expansion projects at their expense.

Amidst this congested financial landscape, a federal judge in Newark is currently reviewing New Jersey's legal case challenging the congestion fee. Arguments have been made that the proposed program did not undergo a thorough enough environmental review and that the Metropolitan Transportation Authority (MTA) should reconsider its approach. Labor unions and local politicians from the outer boroughs of New York have also joined the challenge.

The congestion fee program aims to reduce the number of cars entering Manhattan by an estimated 17%, with the objective of alleviating gridlock and improving air quality. MTA officials have retorted against Governor Murphy's criticism, attributing the transit system's issues to his own mismanagement of New Jersey Transit. Recent investigations revealed a 7% increase in train cancellations compared to 2017, the final year of former Governor Chris Christie's tenure.

With approximately 234,000 individuals crossing the George Washington Bridge, Lincoln Tunnel, and Holland Tunnel daily, New York state lawmakers implemented the tolling program in 2019. The revenue generated would support a $40 billion subway system modernization effort initiated by then-New York City transit boss, Andy Byford. Despite Byford's subsequent resignation in 2020, his modernization plans, including a shift toward computerized train control systems, remain intact.

MTA has already seen success with the new control system on the L and 7 trains, improving their reliability. Ongoing work is being completed on the Queens Boulevard line, while preparations are being made for the installation of computer control on the 8th Avenue subway (A/C/E) in Manhattan. The upcoming summer will witness the start of computer control implementation on the Brooklyn-Queens Crosstown subway (G).

As New Jersey Transit faces its financial setbacks and commuters brace themselves for higher fares, the battle between New York and New Jersey over tolling and funding for transportation infrastructure continues. Both state governments must navigate these issues to provide commuters with a reliable and affordable transit system.