NJ TRANSIT Responses to Senate Budget and Appropriations Committee Follow Up Questions
Governance/Budget Drafting:
1. Was this budget request developed with the Board’s Administration Committee?
Response: Yes. The Board’s Administration Committee members were briefed in advance of any vote that had to be taken. NJ TRANSIT’s executive team held working sessions with the Board in mid-January to allow for consideration and input by the Board prior to submission of the agency Budget to the NJ Treasurer’s Office of Management and Budget. After receipt of the Governor’s Budget, the Board was briefed prior to its consideration and approval of the Budget Proposal Transmittal Board Item.
2. Did the Board review and approve this request? How much time elapsed between the presentation of the request to members and their vote?
Response: The Board is not required to approve NJ TRANSIT’s FY22 budget until July. The Board reviewed the budget in January 2021 prior to the presentation of the budget request to any parties external to NJ TRANSIT. As described above, the board participated in working sessions on the Budget in January and was later briefed on the Governor’s Budget in early March, prior to approving the Budget Proposal Transmittal Board Item on March 10, 2021.
3. Does the line item for Salaries and Wages (page D-386 of the Governor’s Budget Proposal) include a salary for a Customer Advocate? Has there been a Customer Advocate since the departure of Stewart Mader?
Response: Yes, the salary for the Customer Advocate is funded in the FY22 Operating Budget. The position has been vacant since the departure of Stewart Mader. NJ TRANSIT is currently working with the NJ TRANSIT Board of Directors to finalize the Customer Advocate's revised job description and responsibilities. Once that is finalized, the recruiting process will begin in coordination with the Board.
Pandemic Response:
1. Has NJ Transit had success in getting its public-facing workers vaccinated?
Response: NJ Transit is aware of at least 6,100 NJ TRANSIT employees that have received at least one shot. However, this number is likely higher as employees who have received vaccinations at locations other than those coordinated by NJ TRANSIT and who did not present an insurance card at the time of vaccination are not included in the count.
2. Is DOT or NJ Transit actively involved in the statewide vaccination campaign? Transit agencies elsewhere have been connecting vaccine-eligible residents with free transportation; some states are putting their “megasites” along transit routes. Is NJ Transit or DOT involved in anything like this?
Response: NJ TRANSIT has been actively involved in supporting the State’s vaccination efforts on many fronts. In early March, to support the State’s rapidly expanding vaccine distribution efforts, NJ TRANSIT introduced the first phase of a new initiative called VAXRIDE. Through VAXRIDE, we created a new webpage – available at njtransit.com/vaxride – that includes State vaccine registration information and a map linking all of our services to vaccine sites across the state. This information is searchable by address as well as by clicking on one of the vaccination
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NJ TRANSIT Responses to Senate Budget and Appropriations Committee Follow Up Questions
icons on the map of New Jersey. Search results will yield the bus routes, rail lines and light rail lines within a half-mile of the vaccination site.
In April, in addition to opening two on-site vaccination clinics at our Maplewood and Camden work locations for NJ TRANSIT employees, we partnered with Walgreen’s to offer vaccinations at our Ferry Street facility in Newark for employees of NJ TRANSIT, NJ DOT and Turnpike and Port Authority of New York & New Jersey to expand access in support of the State’s vaccination efforts.
On May 4th, NJ TRANSIT launched the second phase of the VAXRIDE initiative to help ensure that all New Jerseyans have access to vaccines, and to support Governor Murphy’s statewide vaccination goals. We leveraged a public-private partnership to fund complimentary travel for New Jerseyans on NJ TRANSIT services to vaccination sites across the State.
Through the generous contributions of Novartis and Catalent, two global healthcare companies, NJ TRANSIT is now offering up to two complimentary round-trip tickets for travel to and from vaccination sites within New Jersey for approximately 11,000 New Jerseyans receiving their COVID-19 vaccine.
In addition to the two mega-sites that are co-located with NJ TRANSIT Facilities – the mega-site at the Atlantic City Convention Center is adjacent to the Atlantic City Rail Terminal and the Community COVID-19 Vaccination Center at Newark’s NJIT, which is served by NJ TRANSIT’s NJIT Newark Light Rail Station (which is conveniently accessible from Newark Penn Station via the Newark Light Rail and frequent NJ TRANSIT bus service), we recently partnered with the NJDOH to offer space at three of our major terminals to be used for walk-in vaccination clinics. The clinics were available from 7am – 11am on Tuesday, May 25 at Newark Penn Station; Wednesday, May 26 at Secaucus Junction; and, Thursday, May 27 at Walter Rand Transportation Center in Camden.
3. How much of the federal funding in this budget request is meant specifically for pandemic- related costs, as opposed to plugging revenue losses?
Response: NJ TRANSIT expects that the majority of our Federal Funding in this budget request will be to support labor and fringe as a result of pandemic-related revenue losses. Estimated farebox revenue loss in FY21 is $731m and FY22 is $403m. Increased expenses due to the pandemic are included in the budgets of the specific relevant departments.
4. Has the pandemic altered any of the assumptions made in the capital plan and strategic plan released pre-pandemic? Are there capital projects you intend to alter or redesign based on the experience of the past year?
Response: NJ TRANSIT continues to evaluate lessons learned from managing through the pandemic to inform future decision-making. At this time, NJ TRANSIT does not intend to modify or redesign projects as a result of the pandemic.
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NJ TRANSIT Responses to Senate Budget and Appropriations Committee Follow Up Questions
Operational Budget:
1. It is understandable that Transit would use federal relief funds to cover revenue losses. However, Transit’s budget request reduces the state subsidy while maintaining capital to operating transfers and the ongoing raid of the Clean Energy Fund. Are capital to operating transfers a permanent fixture of Transit budgeting? Is there a plan to eliminate these transfers?
Response: We have reduced the capital funding used for preventative maintenance expenses by ~$100m this year. Any further reductions will be dependent on the fiscal outlook in advance of subsequent fiscal years. Note that the preventative maintenance expenses total approximately $500m annually and are essential in ensuring the safety and service quality of our transit system.
2. The Turnpike Authority is in the process of entering into an agreement with the State to divert up to $525 million per year to NJ Transit. What is the intended use for these funds?
Response: Under the new agreement, Turnpike Authority funding will support NJ Transit’s operating budget and an annual $25m capital contribution in connection to the Portal North Bridge replacement project.
3. We are all seeking a stable funding source for NJ Transit. Do you have any thoughts on what an appropriate source would be, or perhaps what an appropriate revenue target would be?
Response: Pre-pandemic, our farebox revenue supported approximately 40% of our operating budget. A stable funding source would cover the remaining 60% and allow for future growth in line with inflation. In the FY22 Governor’s Budget, 60% of the operating budget totals approximately $1.6B. Ideas include but are not limited to value capture and dedicated tax schema.
Capital Budget:
1. Which projects outlined in your capital plan are funded, and which are not? How does NJ Transit propose to bridge the gap between their capital plan’s aspirations and the funding made available in their funding request?
Response: Please refer to NJ TRANSIT’s “A 5-Year Capital Plan,” published in June 2020, that provides an unconstrained vision of capital projects. A critical component to reaching the aspirational goals presented in this plan is sustained and dependable funding. NJ TRANSIT will continue to position itself to maximize the use of competitive federal funding opportunities for high priority projects. NJ TRANSIT is optimistic that President Biden’s proposed American Jobs Plan will provide funding for a significant investment in transit infrastructure.
2. As many have noted, Transit’s bus electrification plan falls short of the goals set by the Legislature and the Governor. What are the barriers to bus electrification? Why is Transit failing to keep up with peer agencies, such as the MTA?
Response: As you may be aware, NJ TRANSIT had not initiated any planning or studies with regard to bus electrification prior to 2018. Governor Murphy’s signing of S2252/A4829 established requirements for NJ TRANSIT to move toward zero emission bus purchases by 2032. The earliest goal set by the Legislature and Governor Murphy is 10% of new bus
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NJ TRANSIT Responses to Senate Budget and Appropriations Committee Follow Up Questions
procurements must be zero emissions by 2024. NJ TRANSIT is committed to meeting the statutory deadline and we share the same goal as the MTA of a 100% zero-emissions bus fleet by 2040. NJ TRANSIT expects to have 8 electric buses deployed in revenue service on routes serving the Camden area to begin testing electric buses in live operating conditions. While that is ongoing, NJ TRANSIT’s focus is on the infrastructure required to support electric vehicles, specifically the design and construction of charging infrastructure, which is a critical component of a successful electric bus deployment. On May 25, 2021, NJ TRANSIT staff presented to the NJ TRANSIT Board of Director’s Energy and Sustainability Policy Committee meeting a detailed roadmap of its bus electrification strategy and the steps to modernize our garages and infrastructure to support the future procurements of zero emission busses. As stated at this meeting, NJ TRANSIT is confident that our work is on target to meet the mandatory goals set by the Legislature and Governor Murphy. While there is much work to accomplish, based on feedback NJ TRANSIT received from board members and the general public that participated at the committee meeting, we believe NJ TRANSIT is on the correct path to achieving our shared goal for a 100% zero-emission bus fleet. Further information regarding the plan and NJ TRANSIT’s efforts can be found at: https://www.njtransit.com/zero-emission-buses.
3. Is NJ Transit prepared to meet the opportunity presented by President Biden’s infrastructure proposal? How many capital projects are “shovel ready?” Specifically, does Transit have the capacity in planning and design to respond to new federal programs, which might have new or different eligibility guidelines than current programs?
Response: As discussed in NJ TRANSIT’s 10-year strategic plan, entitled “NJT 2030 – A 10- Year Strategic Plan” published in June 2020, and the 5-year capital plan, entitled “A 5-Year Capital Plan,” published in June 2020, capital projects are positioned to maximize federal competitive grant opportunities. NJ TRANSIT works closely with New Jersey’s Congressional delegation to ensure we are prepared to meet opportunities presented by President Biden’s infrastructure proposal. Given NJ TRANSIT’s experience across various federal grant programs, NJ TRANSIT has the capacity to be responsive to new federal programs.
4. On the same topic, it is widely expected that the Gateway Project and its constituent pieces would be addressed in a federal infrastructure bill. Are there any other new capacity projects that are “shovel ready” or close to it? I am particularly interested in our state’s light rail projects, especially the northern extension of the Hudson Bergen Light Rail.
Response: NJ TRANSIT continues to advance several light rail projects and is working in partnership with the Federal Transit Administration (FTA) and, as it relates to the Glassboro- Camden line, the Delaware River Port Authority and South Jersey Transportation Authority. As you may recall, NJ TRANSIT provided an update to your attention in a letter dated February 18, 2021 on the Hudson Bergen Light Rail project. Since that time, NJ TRANSIT continues to work with the FTA to execute a Record of Decision which will allow NJ TRANSIT to advance the project through the Capital Investment Grant (CIG) Program and secure the Full Funding Grant Agreement (FFGA). Until the FFGA is issued, NJ TRANSIT cannot provide an estimated start date for construction.
5. President Biden’s infrastructure plan outlined support for rail electrification. Some parts of the NJ Transit rail network are already electrified, but Transit still uses and purchases dual-mode locomotives, as no line is fully electric. Does NJ Transit have any plans to electrify more of its
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NJ TRANSIT Responses to Senate Budget and Appropriations Committee Follow Up Questions
rail network? If federal funding provided for an expedited transition, would a change to full- electric locomotives be desirable?
Response: NJ TRANSIT is committed to initiatives that “promote a more sustainable future for our planet,” in alignment with “NJT 2030 – A 10-Year Strategic Plan.” There are a variety of sustainability and other initiatives included in A 5-Year Capital Plan. With regard to rail electrification, NJ TRANSIT continues to evaluate cost and efficacy of electrification or, alternatively, other available technologies. Any rail electrification effort would likely require the construction of new catenary poles, substations, and other infrastructure adjacent to residential and other areas and may also require additional right of way that is not currently owned by NJ TRANSIT. NJ TRANSIT is also studying the potential to use battery operated locomotives which charge while they are operated along electrified portions of track.
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