Gov. Chris Christie took one possibility, a fare hike, off the table for fiscal year 2017 when he announced the settlement of rail union contracts last month. Fares increased 9 percent in October and some service cuts were made to close a $56 million budget hole.
"I am deeply concerned there will be severe service cuts, especially to off-peak riders," said David Peter Alan, Lackawanna Commuter Coalition president. "No fare increase means service cuts. (Christie) didn't pledge no service cuts."
Future NJ Transit cuts to get public discussion
Future NJ Transit cuts to get public discussion
Future NJ Transit train cuts that don't require a formal public hearing will be discussed at a public committee meeting which will give riders a chance to comment on them.
NJ Transit officials would not say directly whether service cuts could be in the offing.
"NJ Transit anticipates additional receipts and reimbursements through the remainder of the fiscal year to mitigate the budget gap and to further identify cost efficiencies within the organization," said Nancy Snyder, a spokeswoman.
She declined to say what those efficiencies could be. Interim Executive Director Dennis Martin said last week that he is confident, working in coordination with the Department of Treasury, that NJ Transit will have sufficient funding approaching the July 1 start of the fiscal year.
Martin said that the current deficit is estimated to be $45 million but that number could change depending on how the agency funds the recent labor agreement and how much cash is on hand to offset checks the agency will have to cut to employees owed back pay as part of the contract.
Part of the labor agreement allows the agency to make those payments over two years, he said. The total money put aside for those payments in 2014 and 2015 is $62 million, said Jennifer Nelson, an NJ Transit spokeswoman.
Martin did not say how much the labor settlement will cost the agency, but estimates given to federal negotiators were $186 million.
Commuter advocates said reducing service would be the likely place for the agency to make cuts, which they fear will start a vicious cycle of declining ridership and more cuts.
"It's a shame, but I think they may have to lay off people, reduce service and defer maintenance," said Len Resto, New Jersey Association of Railroad Passengers president. "They'll probably have to lay off non-union workers, freeze salaries, look at bus lines and rail trips that have the lowest ridership and look to truncate and eliminate some."
Is NJ Transit softening surveillance stance?
Is NJ Transit softening surveillance stance?
NJ Transit officials said they're taking a second look at what information they can release about policies governing how they handle surveillance
Matt Walters, co-founder of the New Jersey Commuters Action Network, said he's concerned about the effect of cuts on riders who depend on buses and don't have other options to get to work.
"For our neighbors who don't own cars, safe and affordable public transit is a lifeline that can't afford to be cut any deeper," he said.
The advocates were critical of chronic underfunding of NJ Transit operations and not having a dedicated revenue source. They blamed governors and legislators of both parties.
"These are decisions made at a political, not an operating level," Alan said. "It's support and recognition by politicians that NJ Transit riders deserve mobility."
URL : http://www.nj.com/traffic/index.ssf/2016/04/could_service_cuts_layoffs_be_next_for_cash-strapped_nj_transit.html
