NJ TRANSIT adopts fiscal year 2023 operating budget and capital plan
NJ TRANSIT’s new budget will allow the agency to purchase new vehicles, upgrade infrastructure and hire the required personnel to enhance the customer experience.
NJ TRANSIT has announced that its Board of Directors have adopted the fiscal year 2023 (FY 2023) operating budget and updated capital plan that supports continued investments in personnel, infrastructure and equipment to maintain the system in a state-of-good-repair and enhance the overall customer experience.
“Governor Murphy’s steadfast commitment to improving NJ TRANSIT is demonstrated through the resources provided in the FY 2023 budget. This operating budget will support continued system improvements while keeping fares stable,” said New Jersey Department of Transportation Commissioner and NJ TRANSIT Board Chair Diane Gutierrez-Scaccetti.
“The operating and capital funding allows us to continue to build on the progress we’ve made through new vehicle purchases, new and upgraded infrastructure, and hiring the personnel necessary to further improve the customer experience,” said NJ TRANSIT President and CEO Kevin Corbett. “This budget is a roadmap for how we will maximise our resources and spend every dollar wisely to deliver the world-class transit service New Jersey residents expect and deserve.’’
The Board adopted a $2.75 billion operating budget and $2.64 billion in capital investments for FY 2023. This budget does not include a fare increase for FY 2023.
While 26 per cent of the revenue in the FY 2023 operating budget comes from passenger fares, the remaining amount comes from dedicated funding from the New Jersey Turnpike Authority, which is $721 million in FY 2023, in addition to federal COVID-19 relief money, and a combination of commercial revenue and state and federal resources.
Approximately 61 per cent of the operating budget is dedicated to costs associated with labour and fringe benefits. Other significant expenses include purchased transportation which represents 10 per cent of total operating expenses. Expenses including materials, fuel and power, utilities, and outside services represent the remaining 29 per cent of the total operating expenses. The budget also allows for the expansion of personnel in key areas within bus, rail, light rail, police operations and strategic administrative support services.
Furthermore, the FY 2023 budget will include enhanced recruitment for the HR Department, employee engagement and candidate experience along with additional Procurement positions.
NJ TRANSIT’s capital funding allocation is $2.64 billion which is an increase of $1.045 billion above 2021’s approved amount of $1.59 billion.
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