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NJ Transit

Updated: Could breaking ground on the Nation's Largest Transit Project end up breaking the bank?

by: Jason Springer

Wed Jun 17, 2009 at 03:15:00 PM EDT

Updated by Jason: Unless things changed in the last week, the Star Ledger Article is off base and the project is funded.  From a separate article in the Asbury Park Press following the press conference announcing:
The director of the Federal Transit Administration said the federal government will fully fund the remaining $3 billion of the new Hudson River rail tunnel.

Peter Rogoff, director of the FTA, made the announcement at the ceremonial groundbreaking here for the $8.7 billion tunnel today. He said it is the largest federal transportation funding commitment in history.

And then in the Hudson Reporter:
The announcement of more federal funding last week now means that the project is currently fully funded.

"I've been familiar with this project and worked on it years ago when Frank Lautenberg was my sub-committee chairman, but back then we never really felt that we would get here because we never really thought that the states and localities would be able to put up a sizable enough match to make a project like this a reality," said Rogoff.

Rogoff continued, "Governor Corzine has proved us wrong, and we couldn't be more thrilled that he did. When you've got a tunnel that's already at capacity and transit ridership alone expected to grow perhaps double in the next 20 years, we don't have the choice in not doing this project. So that fact that the leadership came together and that the money came together to make it a reality is a thrill for me, especially on the 10th day of the job."

So I'm not sure what the Star Ledger article author is talking about, because that would be a drastic change in the span of a week.

On June 8th the Governor, along with state and federal officials, broke ground on a new Mass Transit Tunnel under the Hudson River. From the Governor's weekly statehouse email:

Currently, 10 NJ Transit rail lines use one tunnel to enter Manhattan. The groundbreaking ceremony in North Bergen kicks off the construction of a second way in and out of New York City. Once completed, the new tunnel will double commuter rail capacity on New Jersey Transit from 23 trains to 48 during peak rush hours, increase the number of direct rail lines into New York City from North Jersey and create 44,000 permanent jobs as a result of increased economic mobility in the region.

hudsonrailproject

"It will create thousands of jobs for hardworking families across the region, promote better mobility and provide enormous environmental benefits,'' said the Governor, after handing the shovel he used to break ground to one of the tunnel construction workers standing nearby.

The project has long been championed by the Governor and Senators Frank Lautenberg and Robert Menendez. Financed with funds from the New Jersey Turnpike Authority, the Port Authority of New York and New Jersey and federal stimulus dollars made available under the American Recovery and Reinvestment Act signed by President Barack Obama, the $8.7 billion project is expected to be finished in 2017.

It all sounds great so far. But follow me below the fold to see video of what went right from the groundbreaking, a story of what went wrong and how this project could put us on the hook for a large bill.
There's More... :: (10 Comments, 323 words in story)

How NJ Transit became the latest casualty of AIG

by: Jason Springer

Fri Nov 21, 2008 at 10:04:05 AM EST

We have all followed the saga of the bailout for the banks and now the bailout for the auto industry. NJ Transit isn't seeking a bailout, but they are seeking backing from the government so that they don't go into default:
NJ Transit's executive director, Richard Sarles, also joined the leaders of nearly a dozen national transportation agencies educating Congress about an outgrowth of the failure of mega-insurer AIG.

About $150 million to $200 million worth of NJ Transit's trains, buses, light rail cars and maintenance garages were financed through a "lease-buyback" program that involved banks putting up the cash and NJT paying it back through a Triple-A rated insurer, which was AIG

According to the Tax Foundation in their explanation, New Jersey Transit actually has $1.856 billion in assets underlying lease back transactions.  The Star Ledger also had a good summary of how this situation began:
The root of the problem is deals made before 2003 in which agencies like NJ Transit turned buses, rail cars or stations over to for-profit banks, then leased them back in re turn for up-front payments.

Banks liked the deals because they profited from the lease payments and from the ability to reduce their tax bills by taking credit for the depreciation of the equip ment and buildings. For public agencies, the deals meant extra funds and less expensive equipment.

But the Internal Revenue Service ruled in 2005 that the deals violated tax rules. It gave the banks and other investors until the end of this year to pay back most of the tax breaks or face penalties.

That made the long-term leases a bad bargain for the investors. But now the collapse of the financial markets has given them a way to get their cash back quickly.

When AIG was downgraded, NJ Transit suddenly needed a new AAA insurer. However given the current economic climate, they have been unable to find one willing to cover them.  Follow me below the fold for the rest of the story.
There's More... :: (2 Comments, 454 words in story)

Public hearing and vote on toll hikes Friday

by: Jason Springer

Thu Oct 09, 2008 at 11:30:44 AM EDT

It's one thing to be told you're going to pay more money.  It's another thing to be insulted at every step of the process.  We all went through Gov. Corzine's painful pitch to privatize the toll roads. Months of public hearings and lots of input all for a result that many could have predicted at the start of the process.

Now, we're on round 2 and apparently everyone should be happy about this increase:

New Jersey Turnpike Authority commissioners are scheduled to vote Friday just hours after a special public hearing on a revised plan to raise tolls on the Turnpike and the Garden State Parkway.

Under the revised plan, turnpike and parkway tolls would increase this year and in 2012, raising $8.25 billion. The authority originally proposed three toll increases during 15 years that would have raised $11 billion.

I know they're required to hold the hearing so that the public can feel like they have a say.  They couldn't even humor people by waiting a full day after hearing the public input to "make their decision".  Instead, they'll raise tolls on a late Friday afternoon hoping no one will notice.   I also understand that some will say by making it a long drawn out process, the Republicans will try to score political points.  Quite frankly, the Republicans will complain about anything that is done at this point, so I don't think that's a reason to rush this.  And how about where the money is going:
The money would widen the tolls roads and partially fund an added rail tunnel into New York City.
I am all for increased rail service, but why are the NJ Turnpike and Parkway tolls going to do the job of the NY/NJ Port Authority?  If you aren't going to put all of the money back into the roads and want to invest in rail, why don't you put rail where it will take traffic off of the toll roads.  As it is now, anyone south of Trenton would have to drive on a toll road or pay the tolls to go over to Philly so they could even get a train going north for using the new tunnel to NY.

Looking at the NJ Transit page, they aren't even studying plans to have extended rail service south of Ocean County.  I'm not saying put a train station in each town, but a regional approach could be beneficial in the long term to cut down on cars on the roads.  You already have a Cherry Hill train station that goes east to Atlantic City or west to Philadelphia, but no chance to leave the car at home and go North. Part of the reason you have to keep widening the toll roads is because you don't give people another option besides using them.  I don't think anyone is surprised by the toll increases, but the process we have all been subject to has been absolutely pathetic.

Discuss :: (0 Comments)

Google Transit Comes to NJ

by: Juan Melli

Wed Mar 12, 2008 at 10:39:04 AM EDT

This is pretty cool green-friendly news. Google maps now lets you get directions using NJ Transit trains (no buses). For now it looks like you need to use http://www.google.com/transit, type in the start and end address, and the time you either want to depart or arrive, and if there's a route available by train it will display the various available options.

Here's the result for a trip from Newark to Jersey City:

This particular route gives two options - one connecting through Secaucus and another straight to Hoboken. Since it only includes NJ Transit trains, it doesn't tell you about the Path train.

I played around with a few other routes, but I couldn't get anything from Atlantic City to work, so the system might not be complete yet. Oh, and if you try to find a train into New York, it tells you to walk across the Hudson.

Discuss :: (2 Comments)

News Round-up and Open Thread for Tuesday, May 15, 2007

by: Sharon GR

Tue May 15, 2007 at 09:00:28 AM EDT


Open Thread: What's on your minds today, Blue Jersey?
Discuss :: (3 Comments)

News Round-up and Open Thread for Thursday, April 19

by: Sharon GR

Thu Apr 19, 2007 at 09:52:41 AM EDT


There's a lot going on in the news of Our Fair State today. What do you want to talk about?
Discuss :: (7 Comments)

News Round-up and Open Thread for Tuesday, April 3, 2007

by: Sharon GR

Tue Apr 03, 2007 at 08:23:34 AM EDT

Open Thread: What's on your minds today, Blue Jersey?

Discuss :: (3 Comments)

Do the Loco-Motion

by: Steven Hart

Sun Feb 11, 2007 at 12:14:59 PM EST

Back in the mid-1990s, when I lived in Montclair, an unlikely coalition of downtown black residents and uptown white residents formed to block NJ Transit's planned "Montclair Connection," a 1,500-foot strip of railway destined to improve passenger rail service throughout the region. These opponents did not have tremendouly strong arguments on their side. The families living in the downtown homes were being offered good money to relocate from a ratty neighborhood where many of the residents were renters. The uptown residents had bought their houses with the full knowledge that a railway line ran behind their properties. At the time it was a disused railway line, sure, but as they say, things change. They didn't want passenger trains using those picturesque rail lines behind their houses.

The coalition had managed to stall the planned link for a few years. Then a Montclair councilwoman had the genius idea of inviting a Nation of Islam minister to come speak on the issue.

There's More... :: (21 Comments, 447 words in story)

News Round-up and Open Thread for Tuesday, January 23, 2007

by: Sharon GR

Tue Jan 23, 2007 at 09:33:40 AM EST

  • The Senate passed a bill to create a commission to study town mergers and a bill to eliminate (at least partially) pensions for elected officials convicted of corruption charges. Action on the proposed 20% propTax cut and the 4% cap on propTax increases stalled. Voting on the comptroller bill also stalled when, according to Senate Pres. Codey, the Republicans refused to vote for it. Sen. Barbara Buono also refused support because it had been too watered down.
  • The pot calling the kettle: also in the Star-Ledger article, Sen. Sharpe James, who held the office of mayor of Newark for six of his seven years serving in the Senate, will re-introduce a bill to ban the holding of two elected offices at once.
  • A compromise is being proposed so that Atlantic City could ban smoking in casinos but allow up to 25% of the gambling floor to be designated a smoking section, enclosed and with separate ventilation. Councilman Bruce Ward pointed out that there will still have to be people who have to work in the smoking sections.
  • The mayor and two councilmen of Logan Twp. left the Republican party and became Democrats due to dissatisfaction with their local party leaders. Apparently the move was a surprise to Gloucester County Dem officials.
  • In an effort to improve science education in high schools, tests on specific sciences will be added to the high school graduation requirement, starting with biology in 2008.
  • The Corporation for Enterprise Development, an economic development research group, has given Our Fair State a grade of B for quality of life and work for 2006. We ranked high in education, personal income and job quality, but lower in pay growth, income distribution, and the number of people moving away.
  • But starting this year, you can get divorced quickly! Irreconcilable differences divorces can be completed in six months, according to a new law signed by Gov. Corzine yesterday. The AP reports that "It was supported by the New Jersey Bar Association and opposed by the New Jersey Catholic Conference." No kidding!
  • You're on candid camera: new buses which NJ Transit plans to purchase will come equipped with security cameras. Big Brother is always watching.

Open Thread: What's on your mind today, Blue Jersey?

Discuss :: (5 Comments)

News Round-up and Open Thread for Tuesday, December 12

by: Sharon GR

Tue Dec 12, 2006 at 07:38:54 AM EST

Open Thread: What's on your mind, Blue Jersey?

Discuss :: (3 Comments)

News Round-up and Open Thread for Tuesday, July 17

by: Sharon GR

Tue Jul 18, 2006 at 09:24:40 AM EDT


Open Thread- What's on your mind, BlueJersey?
Discuss :: (3 Comments)

News Round-up for Thursday, May 11

by: Sharon GR

Thu May 11, 2006 at 08:56:52 AM EDT

  • At the Governor's Transportation Conference in Trenton, Gov. Corzine announced yesterday that the groundbreaking for a railroad tunnel to lead from North Jersey to Manhattan should begin in 2009. NJ Transit and The Port Authority of New York and New Jersey, and the state DOT presented funding plans and schedules for the project.

  • The proposed hospital "bed tax" was completely shot down by Sen. Wayne Bryant, chairman of the state budget committee. Corzine spokesman Anthony Coley then reminded the senator that right now we should be looking for more ways to close the revenue gap, not fewer, and requested the lawmakers come up with some alternitives.

There's More... :: (1 Comments, 358 words in story)

News Round-up for Thursday, May 4

by: Sharon GR

Thu May 04, 2006 at 08:38:51 AM EDT

News Round-up for Thursday, May 4

  • In an effort to rely less on one-shot budget tricks, the Corzine administration has dropped its appeal of an August Superior Court decision which blocked the state from adding $150 million from debt refinancing to the general fund. Chalk one up for fiscal responsibility!
  • Ridership may be up on NJ Transit, but rates look to be headed for an increase. Under proposed funding levels, rates may rise about 7% next spring. Gov. Corzine has said he would work to avoid the fare increases. The last fare increase was in July 2005, and the possible increase would match the rate of inflation for the last two years.
  • Avian flu worries: the Governor and his cabinet went through a drill yesterday to test their readiness to deal with an avian flu pandemic in Our Fair State. The test showed weaknesses in responses, even in the departments with the most prior preparation. This test was done on the day the White House reported that due to the nature of the disease, local governments would do most of the work in the event of an outbreak, and two days after a mild form of the disease was found in a Camden bird market.
  • The Senate Judiciary Committee will hold a hearing today on six bills regarding corruption. Attorney General Zulima Farber and the Director of Criminal Justice Gregory Paw will also discuss plans for reorganizing the Department of Criminal Justice. The agenda for this meeting is here. Don't forget to contact your senators with your opinions on these bills (and, well, on anything else they can or should do.)
  • The New Jersey State Interscholastic Athletic Association yesterday voted to set up a plan to begin testing high school athletes for steroids at the state tournament level. If found with the banned substances, students would be suspended from school for one year and lose all athletic awards they've recieved. If approved, the plan could go into effect as early as next fall.
  • New Jersey Leads the Nation Yet Again: Last year, Gov. Codey spearheaded an initiative that school students across the state wouldn't have access to soda, junk food and candy on school grounds by Sept. '07. The nation has followed with a watered-down version of our policy: the largest beverage distributors will stop selling sugary sodas to high schools, and only sell juice, milk and water to elementary and middle schools.
  • Remember that missing Anthrax? Well, they found it, mislabeled, among other samples. Still waiting for news on the terrorist who planted it in the first place.
Discuss :: (1 Comments)

News Roundup

by: Juan Melli

Wed May 03, 2006 at 09:46:59 AM EDT

Lots of energy and environment-related news today.

  • A panel commissioned to study the effects of offshore wind farms recommended the creation of an up to 80 turbine, 350 megawatt wind farm. Call in the Waaaaaambulance! A councilman from Ship Bottom complained: "I think it would detract from the property values of the oceanfront people." Ironic that the most vocal complaints about property values come from those whose homes would be lost first if ocean levels rose even a few feet.

  • Menendez and Kean Jr argued yesterday over who took more money from the oil industry. If either campaign would like to divest itself of this dirty, dirty money, please note that we accept paypal.

  • The two also sparred over who drives the most earth-friendly cars. Kean accused Menendez of "criss-crossing the state in a three-ton gas-guzzling SUV that gets 15 miles per gallon," while a spokesman for Menendez responded that the Senator uses a Chrysler sedan or Nissan Altima. Kean's people say that he will use a hybrid Ford Escape SUV starting next week. Starting next week? You know, campaign stunts work better when you don't make it so obvious that you're reacting to the political winds.

  • Rising gas prices have led to an 11 percent increase in NJ Transit ridership since the start of the year.

  • After receiving 1400 emails from upset residents, Corzine decided to abandon his suggestion to allow self-service gas pumps and lowering the speed limit from 65 to 55. Smart move. By comparison, only 200 residents have emailed the governor about the proposed penny sales tax increase.

  • A new state initiative calling for energy-efficient housing and expanded renewable energy use in housing construction will be announced today. Commissioner Susan Bass Levin noted: "New Jersey is the most crowded, congested state, very dependent on foreign oil - long-term it brings down the cost of utilities."

  • Applebees will be opening up shop in Newark and will become "its first national family-style restaurant." Baby steps.

  • Paul Aronsohn's campaign had it's Sussex County kickoff event in Scott Garrett's home town late last week where about 75 people showed up.
  • Discuss :: (2 Comments)

    News Round-up

    by: Sharon GR

    Wed Feb 22, 2006 at 10:51:55 AM EST

    News Round-up for Wednesday, February 22, 2006:
    • The State Senate Budget and Appropriations Committee started picking through the Medicaid budget yesterday in search of savings. The Committee proposed a new office of oversight for Medicaid spending, which is currently split between the Department of Health and Senior Services and the Department of Human Services.

      • Governor Corzine stated yesterday that he wouldn't consider privatizing the Turnpike to assist the failing Transportation Trust Fund. He stated his current choice will be to (sigh) borrow more money and refinance the existing debtload instead. The Governor said that this would not be the only facet of his plan but nothing else has been stated yet.
      • Controversey is swirling around Governor Corzine's pick for state treasurer. Bradley Abelow has been accused by businessmen who say they were victims of a short-selling scheme by the Depository Trust & Clearing Corp., where Abelow was a board trustee. Abelow has stated that "lawsuits against DTCC "have been largely dismissed or withdrawn and have nothing to do with me personally or my service on the corporation board.""
      • Lawyers are arguing that Our Fair State's new rules for pay-to-play restrictions are confusing. At a hearing yesterday for the Election Law Enforcement Commission, Dover Twp. (Ocean) attorney Garry Mundy testified about ill-defined terms, questionable timeframes for permissable donations, and whether local ordanances supersede or enhance the state's ban, among other issues.
      • Acting Environmental Commissioner Lisa Jackson is requesting public hearings on safety of the Oyster Creek Nuclear Plant from the federal Nuclear Regulatory Commission. There are concerns with corrosion of liners at the site, vulnerablity to aircraft attacks, and monotoring and management of aging equipment. Excelon submitted an application for renewal of the power plant's licence last summer; if renewed in 2009, the plant will remain licenced until 2029.
      • U.S. Education Secretary Margaret Spellings makes her first visit to Our Fair State today. She will be speaking at Fairleigh Dickinson University then visiting the acclaimed Robert Treat Academy Charter School in Newark. She is not expected to visit any public schools where Children have been Left Behind.
      • NJ Transit is reviewing just how many people will use a proposed Monmouth-Ocean-Middlesex rail line. Let's hope they have better luck predicting ridership there than they did on the RiverLine.
      • The Star-Ledger editorial weighs in on the port deal with UAE-owned Dubai Ports World. Bush's defense of his position on this deal? "Trust us."
      • Have you heard the Sen. Menendez podcast interview? You can subscribe to BlueJersey's podcast so you never miss one!

        Discuss :: (3 Comments)

        NJ Transit at a crossroads

        by: DrewTheRat

        Mon Jan 30, 2006 at 09:22:00 PM EST

        ( - promoted by jmelli)

          If God had intended us to fly, he would never have given us the railroads
            Michael Flanders

        The business section of this Sunday's Times of Trenton had an article by Michael Lavitt about the NJ Transit's current crossroads. Unfortunately, it's not on NJ.com - don't know why.

        It builds on some of the issues Lavitt raised in this article questioning whether Amtrak should remain in control of the Northeast Corrider, framing the debate with a story about a 60-year-old power line that shut down the Northeast Corridor, North Jersey Coast and Raritan Valley Lines and inconvenienced 10,000 morning commuters. He notes that:

        The stretch of railroad between Washington and Boston is the only significant right-of-way that Amtrak owns and operates. And there are some who question whether the current Amtrak, headed by a board of Bush cronies who Congress refused to confirm, starved for capital funds and struggling with huge operating losses, should continue to own or control the busiest stretch of railroad in the country.
        There's More... :: (0 Comments, 421 words in story)
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