NJ Transit's Deficit Shrinks, Even as Transportation Funding Uncertainty Grows

At a hearing in Trenton Wednesday, NJ Transit's interim executive director downplayed its latest deficit numbers.

"NJ Transit has historically finished plus or minus over the years," said Dennis Martin. "That's just the natural course of business."

He told the Assembly Budget Committee that the agency was currently projecting a $45 million deficit this current fiscal year. That's down from a previous forecast, which put that number at $57 million.

But that number doesn't factor in the costs of its recent labor deal with rail workers.

The deal gives workers 21 percent raises over eight-and-a-half years, retroactive to 2011. In return, they'll pay more toward health care costs. (Unions are in the process of ratifying that contract, and as of Wednesday, four of the 11 unions had done so.)

But the terms call for the agency to pay those retroactive wages in two lump sums, in 2017 and 2018. At the budget hearing, Martin said because that sum was still being calculated, he couldn't ballpark the amount. Nor could he say where that money would come from.

"Since the settlement has happened recently," he said, "we're actually in negotiations with [the state treasury] right now to work out how we do that."

Legislators weren't placated by the lack of specifics — either over NJ Transit's budget or the state's larger transportation funding issues.

Democrats are locked in a battle with Gov. Chris Christie over how to solve the state's Transportation Trust Fund's upcoming insolvency. (In addition to funding roads and bridge maintenance, the TTF also provides NJ Transit with capital funding.) Depending on who you ask, the state's transportation funding is either in crisis — or much ado about nothing.

Democrats are firmly in the crisis column. When Martin restated the governor's commitment that NJ Transit fares would not be raised through fiscal year 2017, Assembly Budget Chair Gary Schaer turned icy.

"Commitment is wonderful," said Schaer, "but you’ll forgive me: this is the Budget Committee. We deal with more than best of intentions."

But funding specifics were not to be found, either from Martin or from Acting State Transportation Commissioner Richard Hammer, who said the TTF would have enough cash to survive until the end of the fiscal year — but not by much.

"We have some carryover that would go into the new fiscal year," Hammer said, "but probably not too deep into the summer."

How deep? "Early August."

That's because the TTF doesn't have additional bonding capacity. And the various mechanisms to replenish it — usually legislation involving raising the state's gas tax — are going nowhere.

"It's just a little bit difficult for me," said Schaer, "in the second week of April, knowing that we have this date hanging over our heads which at best is catastrophic."

"There is plenty of time for the collaborative efforts to take place between the legislature and the governor to come up with a solution," said Hammer. "So I'm not sitting here today saying there is a crisis. I do not believe there is one."