NJ Transit to Keep Fares Steady Even as Deficit Looms, Murphy Says

New Jersey Transit will keep fares the same for the fiscal year that starts on July 1, Governor Phil Murphy said.

(Bloomberg) — New Jersey Transit will keep fares the same for the fiscal year that starts on July 1, Governor Phil Murphy said.

Murphy, in a video tweet on Feb. 24, announced no increases “for at least another year” but didn’t say how the agency will bridge a projected $550 million budget hole in 2026 as federal pandemic aid runs out. 

Murphy on Tuesday will introduce a successor to the state’s current fiscal year budget of $50.6 billion. He has promised no new taxes and a third straight full pension payment. 

Read more: NJ Transit’s creaky, empty trains tee up risk of fare increases

NJ Transit, the largest US statewide commuter bus and rail provider, is a crucial link to New York City jobs and high suburban real estate values. It is trying to attract thousands of riders lost to permanent hybrid work arrangements. At the same time, the agency has a higher number and rate of breakdowns than its New York City-area peers, Metro-North and the Long Island Rail Road.

Murphy, a Democrat and retired Goldman Sachs Group Inc. senior director, promised in 2018 to turn around failures at NJ Transit rail, whose budget was starved by two-term Republican Governor Chris Christie. He has made progress on areas including the Manhattan rail tunnel, locomotive engineer hiring and a federal emergency-braking project that had stalled for years.

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