In a move that has sparked outrage among commuters and advocacy groups, NJ Transit has given the green light to a 15% fare hike on buses and trains, disproportionately impacting the working poor who heavily rely on public transportation for their daily commute.
Citing post-pandemic ridership drops and a looming $106.6 million budget gap, NJ Transit plans to hold 10 public hearings on the proposal from March 4 to 8 and also will accept online written comments.
The agency’s board is expected to vote on the fare increase at its April 10 meeting and, if approved, a 15% fare hike would take effect July 1, 2024, and additional 3% annual fare hikes will hit riders on July 1 of each subsequent year and continue indefinitely.
This decision comes at a time when Governor Phil Murphy faces criticism for extending substantial tax breaks to corporate giants such as Amazon and Starbucks, exacerbating concerns about wealth inequality in the state.
“The fare increase approved by NJ Transit is going to place an additional burden on already struggling commuters who depend on affordable public transportation options,” said Lisa McCormick, a frequent critic of the political establishment who ran against US Senator Bob Menendez in 2018. “People should express their frustration by holding elected officials accountable because NJ Transit fare hikes disproportionately affect the working class and make it even more challenging for them to make ends meet.”
Murphy, who has positioned himself as an advocate for progressive policies and reducing income disparity, faces criticism for his administration’s seemingly contradictory actions.
“Murphy recently signed off on a billion-dollar tax break for Amazon and Starbucks, two corporate giants that have faced scrutiny for their roles in perpetuating income inequality,” said Lisa McCormick, who argues that providing lucrative tax breaks to corporations while increasing the financial burden on the working class through fare hikes sends a clear but disconcerting message.
Murphy’s decision to let New Jersey’s Corporate Business Tax Surcharge (CBT) lapse at the end of last year meant a $5 million windfall for some of the world’s largest corporations, which according to an analysis from the New Jersey Policy Perspectives, are posting $100 million in annual profits.
Murphy, who began his tenure with an investigation into the tax break scheme started under his predecessor, former GOP Gov. Chris Christie, previously approved a $14 billion corporate welfare program in January 2021.
Only a week into his administration in 2018, Murphy told Amazon he would support up to $5 billion in incentives if the company built a second headquarters in the state, after having attacked government handouts to corporations during his campaign for governor. The Amazon project drew criticism as an example of corporate welfare.
Social media has been buzzing with criticism, with hashtags such as #FairFaresNJ gaining traction as commuters and activists voice their displeasure.
Advocacy groups are calling for transparency in the decision-making process and a more equitable approach to addressing budget shortfalls, urging the government to prioritize the needs of the working poor.
In response to the public outcry, the Governor’s office released a statement emphasizing the need to balance the budget and address the financial challenges faced by NJ Transit.
The statement highlights the complexities of managing the state’s finances but fails to directly address the apparent contradiction between tax breaks for corporations and fare hikes for commuters.
As New Jersey continues to grapple with issues of wealth inequality and economic disparities, the NJ Transit fare hike has become a focal point for those demanding more accountability and a fair distribution of resources.
The controversy is evidence that social justice is not a serious consideration among the political insiders who cater to wealthy oligarchs.