NEW YORK (1010 WINS/ WCBS 880) – New Jersey Transit announced on Wednesday that it is planning to increase fares on buses and trains by 15 percent this summer.
The plan is part of an effort to close a remaining budget gap of $106.6 million, the transit agency said in an announcement on public hearings for the proposal.
The fare hike, planned to take effect on July 1, 2024, would be the first since 2015.
During the pandemic, New Jersey Transit used COVID relief funds to maintain services, but these funds have run out in the Fiscal Year 2025. While the ridership is around 80% of pre-pandemic levels, the agency it is now facing a fifth year of reduced ridership and a nearly $2 billion loss in fare revenue.
The pandemic worsened the agency's funding issues. Factors contributing to the budget gap included a 30% increase in inflation since 2015, affecting fuel and material costs, as well as rising operational and healthcare costs, according to a press release.
The agency identified $44 million in cost reductions and $52 million in revenue enhancements, which includes ending the FLEXPASS pilot and implementing 30-day expiration dates on one-way tickets.
However, the agency does not think that these measures alone will close the budget gap, so they have proposed a fare increase.
"This proposed fare adjustment, along with NJ TRANSIT's internal efficiencies, savings and revenue enhancements would allow for a fully funded FY25 operating budget that avoids reducing service levels," a statement said.
The increase could raise commuters' costs by more than $3, increases laid out in a chart sent out with the announcement.
NJ Transit released a chart showing examples of the proposed fares.NJ Transit
There will be a public hearing period. Schedules can be found on the NJ Transit website.
Ten scheduled public hearings in 10 New Jersey counties will take place, including both morning and evening sessions, Monday, March 4, through Friday, March 8.
