NJ Transit’s annual fare will increase until the end of time begins Monday.
Ticket prices at the public transport company will increase by 15% – and even more for passengers using expiring discount programs – from July 1, the first fare increase in nine years and the start of a 3% annual fare increase going forward.
These are among the controversial changes the NJ Transit board approved in April to address some of the agency’s chronic funding shortfalls. The rate increases would help close the $106 million budget gap projected for the fiscal year that begins July 1. The agency also identified $96 million in internal cuts and other “efficiencies” to balance the budget.
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This follows brutal, almost daily hour-long commutes of rail passengers to and from Manhattan due to equipment failures, while some bus drivers in the region face uncertainty due to Coach USA’s bankruptcy proceedings.
A consultant hired by the Murphy administration is also looking for ways to give the agency a 20% budget cut, the equivalent of $600 million, before the end of the year. The consultant’s work – and his main task of finding deep cuts – was hidden from the public while the decision on the rate increases was debated.
Agency officials have said riders prefer predictable increases to sporadic big hikes every few years. Other public transit agencies, such as Philadelphia’s SEPTA and New York City’s MTA, have begun implementing indexed or more scheduled increases, but NJ Transit’s plans would likely see its fares rise well ahead of its peers.
Business transit costs
Meanwhile, the agency is also expected to receive a new revenue stream from Gov. Phil Murphy’s proposed corporate transit fee, a 2.5% surcharge on businesses making more than $10 million in annual profits. The fate of the tax is in the hands of the Legislature, which is negotiating a budget deal this week.
Here’s what else passengers can expect amid Monday’s fare increase:
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Monday’s increase is 15%; all July 1s after that will be increases of 3%
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NJ Transit’s refund program for those who purchased one-way or 10-trip tickets can begin requesting refunds on August 1
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All paper and 10-ride tickets now expire after 30 days, starting from the day of purchase
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July 1 also marks the end of FlexPass, a popular post-pandemic discount program that offered a 20% monthly discount on the purchase of 20 tickets.
This article originally appeared on NorthJersey.com: NJ Transit fares will increase 15 percent starting July 1
