NJ Transit adopts FY 2012 budgets, advances transit center

NJ Transit Board of Directors approved the Fiscal Year 2012 $1.895 billion operating budget, as well as a $1.16 billion capital program which began July 1. More than half of the revenue in the FY12 operating budget comes from $881 million in fares with the balance from a combination of $104.3 million in commercial revenues, $309.4 million in state operating assistance and $600.2 million in state and federal reimbursements. The operating budget reflects an increase in state operating assistance of $33.2 million, which will enable NJ Transit to hold fares stable this fiscal year. NJ Transit also faced a budget gap of approximately $170 million for FY12, caused primarily by increased operating costs for fuel, maintenance and contractual obligations. To address this gap the company maintained its policy of proposed fiscal austerity and operating efficiency and was able to reduce the original growth estimate to $85 million, an increase in expenses of less than 0.5 percent compared to FY11 when adjusted for mandatory cost drivers. The FY12 capital program includes $64 million for investment in systemwide improvements. Rail state-of-good-repair projects will be supported by $217 million in the capital program, including $37 million to replace track and ties and inspect and replace bridges. A total of $41 million will advance electric traction and signal improvements, and $5 million will fund ongoing locomotive reliability programs. In other news, a project that will create a direct link between NJ Transit's River Line light rail and Atlantic City Rail Line service advanced as the NJ Transit Board of Directors approved construction of the second and final phase of the $32 million Pennsauken Transit Center. The board authorized a $13.8 million contract with Terminal Construction Corporation of Wood-Ridge, NJ, for construction of Phase 2 including platforms, a parking lot, drainage improvements and customer amenities. As part of Phase two, two 300-foot-long, high-level platforms will be built on either side of the elevated ACRL tracks, with a 100-foot canopy on each platform. Construction of the overall project is expected to be completed in late 2012 and open for service in early 2013.