TRENTON, N.J. – Assembly Republican Conference Leader Christopher DePhillips is urging legislative leaders to avoid tax increases as Democrats discuss raising the sales tax to support NJ Transit in the final weeks of state budget negotiations. DePhillips is advocating for a comprehensive review of NJ Transit to uncover potential waste and cost-saving opportunities.
Governor Phil Murphy has proposed a 2.5% corporate surcharge on businesses earning over $10 million to tackle NJ Transit’s budget shortfall, while the Senate and Assembly budget chairs are contemplating a state sales tax increase to 7% instead.
This comes as NJ Transit prepares for a 15% fare increase set to take effect in July.
DePhillips criticized the potential tax hikes, emphasizing that bailing out NJ Transit should not burden residents and businesses further. Rather than targeting taxpayers, DePhillips stressed the importance of internal examination within the agency to address inefficiencies and reduce costs.
Lawmakers are exploring options to establish a sustainable funding source for NJ Transit, which is projected to face a $119 million deficit in the upcoming fiscal year, NJ Transit has resorted to diverting funds from its capital budget and the state’s clean energy resources to maintain operations, highlighting the pressing need for financial reform within the agency.