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January 26, 2005
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Commuters say proposed fare hikes are off the rails
NJ Transit: rising fuel, security costs left $60M budget gap
BY LAYLI WHYTE
Staff Writer

A proposed fare hike by NJ Transit has commuters grumbling and contemplating other forms of transportation — including driving to work.

Travis Sutphin, who drives from Freehold to the Red Bank train station for a daily commute to Newark, said that if proposed rate increases go into effect, it would cost him about the same to drive to work as to ride the train.

“It would cost me $250 a month to drive to work [if the fares are increased],” said Sutphin this week. “I am seriously considering doing that.”

Plus, it would be more convenient, he added, since he wouldn’t be bound by the NJ Transit schedule.

David Zeevie, Deal, who rides the train out of Long Branch every day, agreed.

“I take the train every day and pay $280 monthly for fare,” he said. “It’s like having a car payment.

“To raise the cost would be ridiculous.”

Another Long Branch commuter, Chris Hashtani, of Middletown, also said he’s opposed to a fare hike.

“It’s a lot of money already,” he said.

The proposed increase, according to the NJ Transit Web site, is needed to cover the cost of new and expanded services, as well as keep pace with inflation, and what it calls “spiraling fuel and security expenses.”

NJ Transit spokesman Dan Stessel said in an interview earlier this week that since Sept. 11, 2001, the number of NJ Transit Police has nearly doubled, as has the cost of providing security, from $15 million to $28 million.

Stessel said added security measures include K-9 units, as well as electronic surveillance and other new security technologies.

He also said that the cost of diesel fuel is 46 percent above what was budgeted for 2006, and health benefits for employees have increased by 18 percent each year over the last three years.

According to a press release posted on the NJ Transit web site, “About 90 percent of the FY06 expenses will go directly to service delivery, with only 10 percent for administrative support for the operations.”

Stessel said that the 90 percent of the budget allocated toward service delivery includes the cost of security, fuel, on-board personnel and everything else that is directly involved with the services NJ Transit offers. Anything of an administrative or managerial nature would not be included.

“We are very proud of that ninety percent,” said Stessel.

Stessel said that the increase is necessary to close a projected budget gap of about $60 million.

“The $1.42 billion budget includes $40 million for new service expenses and above- inflation cost increases, of which $13 million is diesel fuel,” according to NJ Transit. “It also includes core expense growth of 2.9 percent over FY05 - largely as a result of labor costs (including fringes). The budget assumes $278.7 million in state assistance, the same level of support the corporation received in FY05.”

According to the release, interstate bus and rail fares would increase an average of 13 percent, but feeder fares would be eliminated for monthly pass riders who make bus or light rail connections. There would also be no fare increases for commuters who buy monthly passes for local bus, subway and light rail services.

The discount for off-peak, round trip tickets will be cut in half, from 25 percent to 12.5 percent, according to the press release.

Stessel stressed that there are some positives that would come out of the increases, including the cross-honoring components.

“People would be able to take a train to work in the morning, and take a bus home at night,” he said.

He also said that because of the elimination of feeder fees, people who transfer from one form of transportation to another might, in fact, have a lower net commuter cost.

“These increases have been designed to generate just enough revenue to close the budget gap with the least amount of pain,” said Stessel.

NJ Transit will be holding several meetings with the public over two weeks in February before the final plan is brought before the board of directors in April.

“Those meetings with the public are only a formality,” said Sutphin. “They are legally obligated to do it by state law.”

Stessel said he is not aware of any state law mandating these public hearings, but they are a part of the NJ Transit by-laws.

“Last time there was a proposed rate increase in 2002,” he said, “we held six public hearings, which were all held on the same day.”

There will be 13 public hearings and information sessions beginning in mid-February, more than are required by statute.

On Tuesday, Feb. 22, there will be a public meeting at the Monmouth County Library in Manalapan.

NJ Transit will accept public comments on the fare proposal in writing on its web site, at customer service offices at major stations, and through the mail.

Christine Varno contributed to this story