NJ Transit needs leadership cleanse not new business tax, lawmaker says

🚄 NJ Transit riders dealing with suspensions, massive delays

🚄 Vocal critic says NJ Transit needs completely new management

🚄 Federal lawmakers demand investigation

TRENTON — As Gov. Phil Murphy and top state lawmakers have reportedly agreed to a new tax on New Jersey's most profitable businesses to fund NJ Transit, one assemblyman says the only way to fix the agency is to clean house and start fresh.

It's been a rough start to summer for frustrated NJ Transit commuters, especially along the Northeast Corridor into New York Penn Station.

Problems with overhead wires, malfunctioning circuit breakers, and pop-up brush fires amid a scorching heat wave have brought on mass delays and suspensions that are giving riders flashbacks to 2017's "summer of hell" — as coined by former New York Gov. Andrew Cuomo.

"We are as frustrated as our customers, and the frequency and impact these issues are having on our customers’ quality of life is clearly unacceptable," said Kevin Corbett, CEO of NJ Transit. A voicemail left with NJ Transit's press office was not returned.

New corporate transit fee aims to fund NJ Transit

Last week, Murphy and state lawmakers tentatively reached a deal to include a proposed corporate transit fee in the upcoming state budget, NJ.com reported, citing anonymous sources.

It would impose a 2.5% tax on all earnings for around 600 New Jersey companies with profits exceeding $10 million a year. The tax would be retroactive to the start of 2024 and expire after five years, according to the report.

The new tax is forecasted to generate more than $800 million for NJ Transit. Corbett said at an April budget hearing that the tax would provide the agency with a much-needed dedicated funding source, which officials have repeatedly said is underfunded.

It's also not really a new tax — it was previously known as a corporate business tax surcharge. Murphy had promised to allow the tax to expire at the end of 2023.

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NJ Transit needs total reform, lawmaker says

The about-face was an act of "bad faith" from New Jersey's elected officials, Assemblyman Christopher DePhillips, R-Bergen, said.

He said that NJ Transit isn't underfunded, it's mismanaged — and the state's private businesses are paying the price.

DePhillips demanded a complete audit of the agency and new leadership, saying it's "amateur hour" at NJ Transit.

"Throwing more good money after bad is not the answer. We need to cut the waste, cut the excessive spending, stop the mismanagement. And the way to do that is with a new management team and a new board," said DePhillips.

The assemblyman also said a 15% fare hike starting July 1 should be rescinded. Corbett said the increase would avoid service cuts and prevent the agency from falling into a "death spiral," the New Jersey Monitor reported.

Federal lawmakers demand investigation into Amtrak

The state Transportation Committee has seen more finger-pointing from New Jersey Transit than answers, according to Assemblyman Christopher DePhillips, R-Bergen.

"They're blaming Mother Nature, they're blaming hot weather, they're blaming Amtrak. I think that's the last thing that commuters want to hear, is that it's someone else's fault," said DePhillips.

While NJ Transit uses the Northeast Corridor as a tenant, Amtrak owns the tracks and is responsible for repairs and maintenance.

The persistent problems have brought together the entire House delegation from New Jersey.

The state's 11 representatives, including eight Democrats and three Republicans, sent a letter to U.S. Secretary of Transportation Pete Buttigieg demanding a federal investigation into Amtrak.

"Amtrak’s troubles leave NJ TRANSIT in an impossible position – unable to direct repairs on Amtrak property and unable to provide proper, reliable service to paying customers who depend on them," the delegation wrote.

They also called for the U.S. Department of Transportation to prioritize additional capital projects and for Amtrak to better communicate with NJ Transit when breakdowns occur.

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