NEWARK, N.J. — The N.J. Transit Board of Directors today adopted a $1.5 billion operating budget and a $1.3 billion Capital Program for Fiscal Year 2007 (FY07) that funds the transit system through June 30, 2007.
Without raising fares, N.J. Transit will offer three million more miles of bus and rail service than last year to support anticipated record ridership of more than 860,000 passenger trips daily.
“Our transportation network is central to our mobility, our economy, and our quality of life,” said Gov. Jon S. Corzine. “We are working to keep transit affordable and encourage transit usage as a means to avoid high gas prices, reduce traffic congestion and cut back on vehicle emissions.”
The Board’s action also sets in motion a number of capital projects, including the replacement of 230 Arrow III rail cars and nearly 1,200 local transit-style buses, as well as continuing critical work to keep stations, terminals and railroad infrastructure in a state of good repair.
“Governor Corzine’s leadership to replenish the state’s Transportation Trust Fund, combined with increased state support for operations, have enabled us to adopt a budget that will maintain and expand a safe and reliable public transportation system,” said N.J. DOT Commissioner and N.J. Transit Board Chairman Kris Kolluri.
N.J. Transit’s operating budget includes $30 million in business efficiencies and revenue enhancements for FY07, in addition to nearly $60 million in efficiencies achieved since FY03. The cost-cutting actions include the elimination of vacancies and reduced headcount through attrition, vehicle repairs and parts inventory efficiencies, new technology implementation and reduced advertising, consultant and general administration costs.
“The Governor’s increase in state support, combined with our belt tightening and managing down costs, enabled us to address new service and spiraling fuel, electric power, and other extraordinary expense pressures without having to increase fares,” said N.J. Transit Executive Director George D. Warrington.