NJ TRANSIT FY 2019-2020 Discussion Points New Jersey Transit A. Recently Enacted Legislation 19. P.L.2019, c.32 established several multiyear schedules for gradually raising the State minimum wage from currently $8.85 per hour to not less than $15.00 per hour. The increase may affect department staff, third parties that provide services to or on behalf of the department, and programs with means-tested eligibility criteria. In FY 2020, the general State minimum wage will rise as follows: 1) on July 1, 2019 to $10.00 per hour; and 2) on January 1, 2020, to not less than $11.00 per hour. The general minimum wage schedule will increase to at least $12 per hour on January 1, 2021; $13 per hour on January 1, 2022; $14 per hour on January 1, 2023; and $15 per hour on January 1, 2024. • Question: Please quantify the fiscal impact to the department in FY 2020 of the increases in the minimum wage of department employees from $8.85 to $10 per hour on July 1, 2019 and from $10 to $11 per hour on January 1, 2020, and the number of employees who will be impacted by each increase. Relative to current compensation levels, please provide the same information assuming an hourly minimum wage of $12, $13, $14, and $15. There will be no significant impact on NJ TRANSIT employees as a result of the phased-in minimum wage increase. • Question: Please quantify the fiscal impact to the department in FY 2020 of the increases in the minimum wage of employees of third parties that provide services either to the department, including temporary employment services, or on behalf of the department according to contractual agreements. Relative to current compensation levels, please provide the same information assuming an hourly minimum wage of $12, $13, $14, and $15. There are currently no temporary employment services firms doing business with NJ TRANSIT that charge NJ TRANSIT at or below the minimum wage. The lowest bill rate for one temporary employee is currently $23.40 per hour. 20. P.L.2018, c.90, permits certain government entities to enter into public-private partnership (P3) agreements for certain building and highway infrastructure projects. The law permits NJ Transit to enter into P3 agreements, including but not limited to, design-build, lease, and leaseback agreements. Highway projects are limited to projects with an expenditure of $100 million or more, with no more than eight projects active at one time. The law also provides that projects with a transportation component or impact on transportation infrastructure be submitted to the State Treasurer in consultation with the Commissioner of Transportation for review and approval. All completed applications for State P3 agreements are also subject to review and approval of the State Treasurer in consultation with the Economic Development Authority. 1 NJ TRANSIT FY 2019-2020 Discussion Points (Cont’d) • Question: How does P.L.2018, c.90 impact the P3 powers of NJ Transit and any immediate plans to utilize private partnerships? Does this law facilitate or impede certain types of projects or contracts NJ Transit may pursue in the future? NJ TRANSIT has multiple statutory means to enter into a P3. For future procurements where a public-private partnership is considered, NJ TRANSIT will evaluate the costs and benefits of the different permissible procurement methods prior to making a decision on how to proceed. • Question: Was NJ Transit previously subject to review and approval for completed P3 applications by the Treasurer in consultation with the EDA and for overall project review and approval by the State Treasurer in consultation with the Commissioner of Transportation with respect to its P3 agreements? What costs and benefits will result from this requirement? NJ TRANSIT has previously used its Design Build Operate and Maintain authority under N.J.S.A.27:25-11(c) coupled with its authority under N.J.S.A.27:25-5(h) to enter into agreements with private entities, which were not subject to State Treasurer approval. NJ TRANSIT does not have any immediate plans to utilize P.L.2018, c. 90 to enter into a public-private partnership. For future procurements where a public-private partnership is considered, NJ TRANSIT will evaluate the costs and benefits of the different permissible procurement methods prior to making a decision on how to proceed. 21. P.L.2018, c.113, designated as “Tommy’s Law” was approved on August 24, 2018, and requires NJ Transit to designate an employee as a liaison to improve communication between NJ Transit and those injured in incidents involving NJ Transit equipment, and ensure that personal belongings are returned to those injured or their immediate family. The law also requires a study into methods and policies to improve interactions with those injured and to expedite the return of their belongings, and make the process of seeking the return of personal belongings easier. • Question: Please provide an update on the implementation of “Tommy’s Law”. Have liaisons been designated as required? Has NJ Transit hired new people to fill these positions or utilized existing staff? If existing staff has been utilized for this purpose, have they received any specialized training for this role? The New Jersey Transit Police Department (NJTPD) has written and implemented a policy that fulfills the requirements of Tommy’s Law. Pursuant to NJTPD policy, the investigator assigned (in most circumstances a detective) to investigate an incident where a person is injured or killed will serve as the “designated employee” to act as a liaison between NJ TRANSIT, the NJTPD, and the injured person or person’s immediate family member if the person was killed. NJTPD is utilizing existing staff to act as the designated employee. NJTPD detectives receive specialized training through their progression into their roles as detectives. For example, detectives receive Crisis Intervention Training, Cultural Diversity Training and De-escalation Training, among other courses and trainings, to prepare them to speak with the public and family members during emotional circumstances. 2 NJ TRANSIT FY 2019-2020 Discussion Points (Cont’d) • Question: Please provide an update on the completion of the study required under this law. Will the study be completed by the August 24, 2019 statutory deadline? Please estimate the anticipated costs in FY 2019 and FY 2020 related to the implementation of this law for both the liaisons as well as the study. NJTPD is in the data collection phase of the study to improve NJ TRANSIT’s interactions with, and the return of personal belongings to, a person injured or a member of the person’s immediate family if the person was killed. Once data is collected, NJTPD will be able to conduct an analysis to improve the agency’s interactions with, and expedite the process of returning personal items to, injured persons or the immediate family of the deceased. NJTPD anticipates the study to be completed by the August 2019 deadline. NJTPD estimates the costs of implementing Tommy’s Law to be minimal for FY19 and FY20. NJTPD is utilizing existing staff to both serve as liaisons and complete the study. The requirements of Tommy’s Law were added to the duties of current staff. While some overtime may be incurred, at this time the additional duties of implementing Tommy’s Law will not have a substantial fiscal impact on NJ TRANSIT. 22. P.L.2019, c.38 was approved on March 1, 2019 and requires all employers of 20 or more people to offer the opportunity to utilize a pre-tax transportation fringe benefit, usually under the “Transit Check” or “Ride Eco” programs in New Jersey. This law also requires NJ Transit to conduct a public awareness campaign to promote pre-tax transportation fringe benefits, consisting at a minimum of signs in stations and terminals. • Question: Did NJ Transit have marketing efforts to promote the use of pre-tax transportation fringe benefits in place prior to the enactment of P.L. 2019, c.38? If so, is it expected that those efforts will be sufficient to satisfy the requirements of this law? If not, what steps has NJ Transit taken to commence the required public awareness campaign? Is funding included in NJ Transit’s budget or in the capital program to cover the cost of the public awareness campaign, and if so, what amount? The legislation, P.L.2019, c.38, approved on March 1, 2019 provides a 365-day implementation window. The NJ TRANSIT Commuter Tax Benefits web page and all service messaging have been updated and a media campaign is scheduled to begin around Labor Day. NJ TRANSIT will continue to evaluate the costs and logistics of the public awareness campaign to place signs in NJ TRANSIT’s stations and terminals, and other media assets to increase public awareness. NJ TRANSIT will leverage existing resources to execute a comprehensive public awareness campaign for this legislation. 23. P.L.2018, c.135, approved on November 1, 2018, requires NJ Transit to establish an office of real estate economic development and transit-oriented development. NJ Transit is also required to report annually by October 1 of each year concerning various aspects of its real estate assets and real estate development activities. 3 NJ TRANSIT FY 2019-2020 Discussion Points (Cont’d) • Question: Please provide an update on the implementation of this bill. Has the department established the office of real estate economic development and transit-oriented development? How many new and existing employees are expected to be assigned to this office? What are the titles and salary levels of the new employees? Does the FY 2020 budget contain funding for this office? How much additional FY 2020 costs are attributed to the establishment of this office? NJ TRANSIT has an existing Real Estate & Economic Development group, which started FY19 with 13 staff and has since been reallocated an additional 3 positions from other areas of NJ TRANSIT in response to the legislation.