February 27, 2007

NJ-ARP OPPOSES NJT FARE HIKE AS CURRENTLY PROPOSED,
MAINTAINS 'A FARE INCREASE IS A TAX INCREASE'

The New Jersey Association of Railroad Passengers (NJ-ARP), a not-for-profit corporation established in 1980, believes the proposal to increase New Jersey Transit fares (which are already the second highest in the nation) by an average of nearly 10% is premature. We question why, once more, those who choose transit as a socially responsible option are being singularly punished by New Jersey Transit -- and the state legislature -- for their good deeds. NJ-ARP believes no adjustment in revenue collected from the transit rider should be considered until the following takes place:

1. Governor Corzine appoints an independent panel of transit experts to conduct a "best practices" review of NJ Transit. Such a review would entail all aspects of the transit agency. The objective would be to elicit recommendations, which when implemented, will make NJ Transit "best in class". The operational and management efficiencies achieved would enhance NJT's economies of scale, improve NJ Transit employee working conditions and provide the rider with a more reliable and pleasant service. NJ-ARP has a number of ideas for improvements, some of which could be easily and inexpensively implemented, and we would be pleased to assist with such a review. We believe the improvements would generate at least the $60 Million projected shortfall in revenue.

2. NJ Transit and other transit operators in the state must work closely with statewide advocacy groups to lobby the Legislature for a permanent fix to the annual transportation funding crisis. This proposed fare hike is the 5th increase without a corresponding increase in the state gasoline tax, a tax that is the 4th lowest in the nation. Since the bulk of the Transportation Trust Fund (TTF) monies go to servicing debt, the state is actually starving transit of funds. We have suggested a way to address this; however, we need the help of NJT and others to make the Legislature find the political will to finally act.

3. Any fare increase should be accompanied by a simplification of the fare structure and collection system. The rail zonal fare system is a holdover from the defunct private railroads which went into bankruptcy in the early 1970's. The bus zonal fare system is a holdover of the defunct bus companies which turned their routes over to what is now NJ Transit. To the discretionary or occasional user, the rail fare system is largely a mystery until the rider purchases their ticket. When purchasing tickets from ticket agents or from TVMs, a rider is left with a confusing jumble of multiple tickets. The fare system, for all modes of transit, should be easily understandable in order to attract riders. Further, NJ Transit should be seeking to increase ridership during the off-peak in order to better utilize its assets. Maintaining the current rail discount of 15% is not enough of an incentive for riders to abandon their cars for public transit. Discounts of 25% to 35%, as those given by the MTA in New York, make the rail system much more attractive. The current fare inefficiencies actually cost NJ Transit needed revenue.

NJ-ARP stands ready to assist NJ Transit in the points suggested above. We can meet with the Board in private session or in individual meetings. If we take the right steps, in time we can become the most cost-efficient transit system in the U.S.A.

Copyright ©2007 NJ-ARP