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The first NJ Transit rate hike in nearly a decade – a 15% increase – took effect July 1 for rail and bus riders of the beleaguered agency.

Citing a looming fiscal cliff, NJ Transit’s board passed the controversial fare hike earlier this year. It marks the first uptick in nine years and includes 3% annual increases each July 1, beginning in 2025.

NJBIZ has reported extensively on the financial woes at NJ Transit, which has been at the center of New Jersey political news this year. According to officials, this fare hike, combined with funding due via the recently enacted corporate transit fee (CTF), as well as a continued effort to reduce costs and improve operational efficiencies will lead to a firmer financial footing for the agency.

“While a fare increase is always an option of last resort, we recognize the impact an increase of any size has on all our customers – and remain strongly committed to ensure that the overall service levels are not reduced through FY25,” NJ Transit President and CEO Kevin Corbett said in April when the increase was approved.

Of course, the timing could not be worse. Over the past few weeks, rail riders faced service meltdowns leading to a myriad of service delays, cancellations and interruptions. Some of it amid a heat wave. That’s led politicians from both sides of the aisle and advocacy groups to call for a pause in the action.

Breakdowns, delays and cancellations

“During the past few weeks, NJ Transit commuters have experienced unacceptable delays due to breakdowns on Amtrak’s Northeast Corridor,” said U.S. Rep. Mikie Sherrill, D-NJ 11th District, in a June 27 statement. “Now, New Jerseyans are staring down a 15% rate hike – all while disruptions continue. I understand the difficult budget circumstances for NJ Transit, but this is a textbook example of inconsistent planning and short-term thinking that has been far too typical in Trenton and Washington.

“Families deserve a break – not a fare hike, which is why I am calling on NJ Transit to pause and reevaluate these plans until New Jersey commuters have the reliable service they expect and deserve,” Sherrill said.

“It’s unacceptable that thousands of New Jersey commuters were struck in trains or between tracks for hours this week, during a heat wave,” said Curtis Bashaw in a June 21 statement. The Republican is a candidate for New Jersey’s U.S. Senate seat this fall. “New Jersey commuters should not continue to bear the cost of these continued infrastructure failures and incompetence from Amtrak and NJ Transit. Until services consistently improve, I’m calling on Gov. Murphy to cancel the July 1st 15% fare hike on New Jersey Transit commuters.”

“I’m not sure anyone who has bought a ticket to Manhattan has thought it was the right decision; it was just a decision,” said Assemblyman Chris DePhillips, R-40th District, in a June 24 statement. “That’s where NJ Transit fails and disconnects with its customers the most.”

‘The Lord helps those that help themselves’

But those calls fell on deaf ears as the rate hike did indeed take effect Monday.

In an effort to address the recent rail woes, Murphy convened NJ Transit and Amtrak leadership last week. The session sought to get stakeholders on the same page and come up with a plan to mitigate further disruptions.

Following that meeting, Murphy spoke about the situation during his News 12 New Jersey call-in show June 27.

“That’s a decision for their [NJ Transit] board,” Murphy told News 12 New Jersey’s Eric Landskroner. “But I would say this – I want to remind folks that we did go six years with no fare increase. The last administration was up 38%. We’re not going to balance the books only on the back of commuters – I promise folks that. There’s a corporate transit fee. There’s still money that the state transfers. The Lord helps those that help themselves.

“We’re asking NJ Transit to do a significant restructuring,” Murphy continued. “But the books will not be balanced over time on the back of the commuters.”

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Gov. Phil Murphy signed a record $56.6 billion state budget into law June 28. Click here to read what state leaders are saying about the spending plan.