NJ Transit 3% fare hike takes effect. Here's where the agency's CEO says the money is going.
If you use NJ Transit, you probably noticed you are paying a bit more on your train and bus tickets.
That's because fares went up by 3% on Tuesday, an increase that follows last year's 15% hike, which was the first of any kind in a decade.
NJ Transit CEO addresses the state of the agency
On Tuesday, CBS News New York's Christine Sloan asked NJ Transit CEO Kris Kolluri about delays and cancellations that have plagued the system.
"What is happening now is that these massive weather systems, these massive thunderstorms that are going through, happen in such a burst," Kolluri said.
Kolluri added the system is antiquated and Amtrak's responsibility because that agency owns the lines. He said the cost to upgrade is in the billions of dollars.
Kolluri said the 3% fare increase will go toward NJ Transit's budget.
"Pays for Access Link, which has gone up by $40 million this year, and new bus service and replacing private carriers that no longer provide bus service ... that has gone up by $20 million," Kolluri said.
Here's what state and federal funding is paying for
As for the more than $760 million earmarked for NJ Transit in the state budget just signed by Gov. Phil Murphy, Kolluri said that money will go toward COVID-era loss.
"The corporate transit fee the Legislature and the governor are now giving us is merely replacing the money we used to get from the federal government until this year," he said.
However, Kolluri says federal money will pay for other upgrades.
"That's why the governor and I said before the end of this year we will order all the trains and buses necessary to modernize the system," Kolluri said.
Kolluri said the fear was the agency would get less funding under the Trump administration, but added NJ Transit is getting exactly what it wants.
"Everything is going up except our salaries"
Despite what the CEO says, NJ Transit riders are forking out more on train and bus tickets and some are not happy about it.
"No, it's too much! They just went up on the fare," Newark resident Gail Goodson said.
"How often do they go up? Everything is going up except our salaries," Newark resident Geraldine Cooley said.
"I think it's fine as long as they put the money to upgrading the trains and some Wi-Fi," commuter Aaron Schlam said.
