NJ TRANSIT Needs Its Own Tax Revenue Source, Report Says
TRENTON, N.J. (CBSNewYork) -- A new report says NJ TRANSIT must stop borrowing from Peter to pay Paul.
As WCBS 880's Kelly Waldron reported Sunday, NJ TRANSIT received $350 million from the State of New Jersey to handle operating costs.
But that money has dwindled to just over $30 million. As a result, the agency has used a combination of fare increases, federal funding for capital projects, and New Jersey Turnpike revenues to make up for it.
According to a report by the Fund of New Jersey obtained by The Record newspaper, the fiscal constraints have resulted in an understaffed agency that struggled with safety compliance.
It suggests NJ TRANSIT should receive tax revenues from motor vehicle licenses and registrations along with real estate transactions or business payrolls, which is similar to how the Metropolitan Transportation Authority is funded.