FOR RELEASE: December 19, 2001

NJ-ARP: PROPOSED NJT FARE INCREASE RISKS LOSING DISCRETIONARY RIDERS; STATE LEGISLATURE MUST SET STABLE FINANCING FOR NJT

NEWARK, NJ, December 19, 2001 -- The New Jersey Association of Railroad Passengers (NJ-ARP, http://www.nj-arp.org) today announces its opposition to the fare hikes proposed by New Jersey Transit (NJT) to take effect April 1, 2002. NJ-ARP instead asks the New Jersey State Legislature to finally bite the bullet and set a firm fiscal footing for NJT.

While the average fare increase would be 10%; some rail riders would have their fares hiked by as much as 187%. One of the highest increases goes to those passengers traveling from Newark to New York. The reverse commute excursion round trip fare of $3.50 becomes a round trip fare of $6.60! NJ-ARP does not dispute the inequity of the fare between Newark-Broad Street/New York Penn and Newark Penn/New York Penn; but it does question the timing. Post September 11th, riders have very little choice in getting to New York with the loss of the PATH World Trade Center station.

NJT fares are among the highest in the nation. The chart below compares NJT fares with other transit agencies in the U.S. The NJT Press Release dated December 11, 2001 indicates that in addition to the 10% average fare hike; all fares would be indexed for the next 5 years to account for inflation.

NJ-ARP notes several objectionable provisions contained in the Press Release's fine print:

• Discounted Round-Trip Excursion tickets would not be accepted on weekdays, resulting in much larger increases for riders who currently use these tickets. This measure alone will turn away discretionary riders who are the future of the transit system. It also slams users of modest means who wait until later in the day to travel to avoid standing room only congested trains and buses.
• Refunds for unused one-way tickets would no longer be issued, despite refunds being a requirement of New Jersey law (N.J.S.A. 48:3-37)
• NJT proposes that its standard fare will be the one-way fare, and that all other ticket types would be considered "promotional, subject to change". It appears that this would allow NJT to raise the fares for other tickets, including monthly tickets, at any time without public hearings. This would significantly reduce the amount of influence riders have regarding future fare increases and would allow NJT to unilaterally raise fares beyond the inflation rate at any time without public hearings. The same would apply to fares for new services, a policy that NJ-ARP is actively seeking to overturn after the Newark Airport Rail Station fare travesty.

The proposed hike addresses less than 10% of the projected shortfall. It is the most regressive tax there is. It hits lower income and inner city residents the hardest, especially in Fare Zone One. Make no mistake; A FARE INCREASE IS A TAX INCREASE. All the while, New Jersey's gasoline tax remains the 4th lowest in the nation, right behind Alaska, Georgia and Wyoming! With gasoline prices already below $1 (Europeans routinely pay $4.00 to $5.00) NJT's ill-timed announcement will send people back to their cars which hurts us both in terms of the environment and the quality of our lives.

The timing of the hearings puzzles NJ-ARP. Instead of holding hearings over multiple days, as is usually the case, all hearings will take place on January 2, 2002. Holding hearings on the day after New Year's, when many people are on vacation or still recovering from holiday over-indulgence will reduce the number of affected riders who can attend. Approval by the NJT Board of Directors is widely expected on Monday, January 7, 2002, just in time for outgoing Acting Governor DiFrancesco to sign off on the increase and allowing incoming Governor-Elect McGreevey, who has taken the pledge "no new taxes" to disclaim any responsibility for raising taxes.

The root cause of NJT's financial problems needs to be addressed. The culprit is the New Jersey State Legislature that has not enacted any source of permanent operating funding for NJT. Being subject to the annual whims of the Legislature, which have included significant funding cuts in some years has forced NJT to use short-term funding mechanisms. It forces NJT to routinely raid the Capital Budget to balance the Operating Budget. The Legislature must make it possible for that practice to stop. The fact is that the motorist in New Jersey enjoys free highway access, free parking at their point of destination, E-Z Pass discounts, and cheap gasoline. This demonstrates how paltry NJT's operating subsidy really is.

It is well past time for the Legislature to think out of the box and begin to encourage transit use by recognizing the energy security risk of burning oil. Over the past 11 years of steady fares, European countries have recognized their own energy security risk and have begun to shift the burden of taxation from income to carbon emissions of fuels. During the same time period, New Jersey has reduced the state income tax and refunded money to homeowners and renters; yet, the gasoline tax remains untouched so that we are one of the lowest gasoline tax states in the nation.

NJ-ARP believes it is unfair to place the budget shortfall on the backs of the transit rider. With regular gasoline prices falling to below $1.00 per gallon, unemployment at its highest level in years, and the economy still faltering; it is the worst possible time to implement a fare increase. Transit ridership is at an all-time high precisely because of stable fares. To snub the transit rider now, for sins not of their own making, would be to undo much of the progress made over the past decade.

NJ-ARP urges the Legislature to act NOW. We recommend a continued gradual reduction in either the property and/or income tax, offset by a gradual increase in the gasoline tax. The monies raised from the gasoline tax would be dedicated to transit needs and would help level the playing field as respects the highly coddled motorist. In addition, the Legislature should mandate a 10% rebate in car insurance premium costs to those residents who can provide proof of daily use of transit for at least 6 months out of the calendar year.

Our suggestion will benefit low and middle-income residents who will get a break in their taxes because they cannot afford, and therefore do not drive, 5,000 pound SUV behemoths. Those who do drive SUV's and increase our dependence on foreign oil and pollute the environment will see a proportionate tax increase. Our suggestion also benefits industry, which would be given a price incentive to heighten energy conservation. With these bold steps, our transit system would be finally placed on firm footing, our environment will be improved, our quality of life will be enhanced and our dependence on Middle East oil will be lessened. It will allow for NJT's vision as outlined in their "Call To Action" to become a reality.

Let's make this a win-win situation for everyone. We urge the Legislature to act without delay and we respectfully request that consideration of any fare increase be postponed until the Legislature has adequately addressed the issue.

* Receive 10% off your collision and property damage auto insurance (up to $75) when you buy and turn in to your insurance company 11 out of 12 passes per policy year.

NJ-ARP Position supported by:

• Tri-State Transportation Campaign
• Sierra Club-New Jersey Chapter
• Committee for Better Transit (CBT)
• Jersey City Landmarks Conservancy
• Penn-Jersey Rail Coalition