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Three men in a room decide too much for Garden State

Posted on by angelo
Three men in a room decide too much for Garden State

4 minute read

New Jersey’s FY 2025 budget will be passed at the start of another hellish summer for New Jersey commuters.

Yes, the Murphy administration and Democratic-controlled Legislature — collaborators in weakening the Garden State’s democracy by dangerously limiting access to public records — finally succeeded in providing a needed revenue pipeline to NJ Transit. The new corporate tax will be devoted exclusively to the transport agency.

Years of complaints and warnings from beleaguered train and bus riders couldn’t shake the three Democratic men in a room who have a say in every tax dollar doled out from Trenton. It took stranded commuters grilling in the Heat Dome — and lashing out on every social media platform and television station in the New York metropolitan area — to finally spur them into action.

As Gov. Phil Murphy recently stood in the sparkling Cape May sun earlier this month with the borough’s mayor to promote new mat access for people with disabilities and seniors at community beaches – a noble and necessary element, I must add – the summer of seething Secaucus Junction or crumbling Newark Penn Station was only just beginning. And then there’s the World Cup in 2026. Who in their right mind would want to travel to MetLife Stadium on such an unreliable operation?

NJ Transit and Amtrak Problems Need to Be Addressed

Of course, much of the blame falls on Amtrak, the federal rail service that President Joe Biden has long championed. But in recent weeks, faulty federal rail infrastructure has been colliding almost daily with NJ Transit’s equally faulty equipment. Last week, eight incidents involving Amtrak cables intertwining with NJ Transit pantograph equipment led to an avalanche of delays and cancellations, leading a top Amtrak official to admit that his agency has no idea how this happens — or the ability to prevent it from happening again. It’s like the beginning of one of those 1950s science fiction movies, where military leaders are left defenseless after a devastating attack by powerful aliens.

“There is a lot of work going on to try to understand what caused this problem and what we can do to prevent this situation from happening again,” said Gery Williams, executive vice president of the Amtrak’s service delivery and operations. “Unfortunately, at this time, we do not yet have an answer. »

The 2.5% surtax on big businesses is just the hood ornament of the $56.6 billion budget Murphy signed over the weekend, a long-awaited and necessary step to restore his damaged reputation and improve the service. At least that’s what the plan calls for. The tax, which would apply to about 600 companies that make more than $10 million in profits per year, is expected to generate about $1 billion per year, helping to avoid the worst-case scenario of cuts in services and of staff. It should also, in theory, relieve the agency of the need to draw money from its capital budget to pay for day-to-day expenses.

“These transit fees, the dedicated funding policy are historic, but they keep our system exactly as it is, and that’s a good thing so we can avoid service cuts,” said Alex Ambrose , political analyst for the New York Times. Jersey Policy Perspective, a liberal think tank that lobbies for more funding for public transportation.

Yet the orderly and uncontroversial passage of the budget (the rejection of a proposal to restore the 7 percent sales tax has a way of calming nerves) is something of a metaphor for state government, and it didn’t happen only on Murphy’s watch. The Democrats in power in Trenton only acted when the crisis became a widespread media problem, even though mechanical failures (aging, unreliable equipment) have been the leading cause of cancellations for some time now. The governor has vowed to fix the problem if it kills him, but he is alive and well and probably planning another summer visit, no doubt to his villa in Italy.

Trenton manufactures: Where does the StayNJ Tax Credit fit in the 2025 New Jersey State Budget?

NJ Transit improvements – to some extent – ​​are happening

That’s not to say there haven’t been significant improvements in public transit. Long-awaited electronic braking systems were finally installed to prevent trains from spinning out like the one that crashed into the Hoboken station a few years ago, and the agency, under Murphy’s leadership, grew the number of engineers needed to keep the trains running.

The Gateway Tunnel project has produced some initial results. But this new corporate tax is a last-minute measure: It will last for five years, during which time lawmakers, under pressure from the business community, will demand its expiration. And then? And it’s worth noting that the initial revenue from the new surcharge will be deposited into the general fund in fiscal year 2025, making it a target for other needs.

The new transit tax – in the sixth year of Murphy’s reign – is a reminder of a wasted opportunity. All the COVID-19 relief money that has flowed into New Jersey, including millions that went to questionable pork projects, will soon be gone, and in its wake, we have no real plan and global approach to modernize and expand a system that is absolutely crucial. to the state and regional economy. Is an extension possible? The promised North Brunswick train station remains an unfinished mountain of dirt just off U.S. Route 1 – an eyesore. How about simply replacing aging rail infrastructure? Some advocates also call for lower fares for bus riders, particularly in high-traffic, low-income areas. This would help alleviate some of the 15% rate increase for those who would feel it the most.

“If we ever want to improve service, expand it or replace our aging infrastructure, we will also have to consider other sources of revenue,” Ambrose said.

The new corporate tax hike, she said, “simply maintains the status quo.”

The crisis on the rails in recent weeks has prompted leaders in both parties to address the 15% fare increases. Rep. Mikie Sherrill, a Montclair Democrat who is considering a run for governor next year, called on NJ Transit to “pause” the fare hikes until “riders get the reliable service they expect and want.”serve.”

Republican Rep. Nancy Munoz, R-Summit, tried unsuccessfully to reverse fare hikes while the five-year transportation tax is in effect. She raised the issue just before the Assembly voted for the increase Friday. It was adopted by 41 votes, the bare minimum.

“This bill ignores the fact that you are still imposing a 15% increase in transit fares on New Jersey riders,” she argued. “So not only are we hurting businesses in the state of New Jersey, but you’re doing nothing to help commuters in the state of New Jersey. Shame on everyone who doesn’t see this. »

But the harsh reality is that price increases are also necessary to “maintain the status quo”. The new tax is therefore not a financing mechanism for a visionary project for the future, but a band-aid.

Riders and advocates for struggling NJ Transit may have reason to worry about another big-ticket budget item: a difficult and expensive push to fund StayNJ, a program that promises to give senior homeowners a 50 percent break on their property taxes, with total savings of no more than $6,500 a year. It’s largely Assembly Speaker Craig Coughlin’s dream project, and its planned launch date is calendar year 2026. It will ultimately cost $1.3 billion a year, and the new budget allows the state to make a $220 million down payment.

That money is included even though it does not meet a criterion in the law that created the program, which was supposed to stop funding if the state surplus is less than 12 percent of the state budget.

The budget surplus stands at $6.2 billion, or 10.9 percent of the budget. Yet lawmakers aren’t going to let a little thing like a legal safeguard get in the way of their goal of showering a crucial voting bloc, seniors, with a generous campaign giveaway. That’s a priority for Coughlin and apparently the rest of the Democratic majority that wants to hold on to power for another election cycle.

Public transportation may have to wait at the station again.

Charlie Stile is a veteran New Jersey political columnist. For unlimited access to his unique insights into New Jersey’s political power structure and his powerful watchdog work, please subscribe or activate your digital account today.

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