TRANSPORTATION AFFORDABILITY A NJ TRANSIT PERSPECTIVE

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TRANSPORTATION AFFORDABILITY A NJ TRANSIT
PERSPECTIVE

• DC Agrawal
• Assistant Executive Director
• Corporate Strategy, Policy and Contracts
• New Jersey Transit
• August 12, 2008
• The Council of State Governments
• Eastern Regional Conference

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How Transit is Viewed in New Jersey

• Vital to State of New Jerseys
• Mobility
• Economic growth
• Congestion reduction
• Air Quality and Environmental goals
• Energy Conservation and Sustainability

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How The Nation Funds Transit
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How New Jersey Funds Transit
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Transit Growth The New Jersey Experience
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Why Does Transit Work In New Jersey?
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Why does Transit Work in New Jersey?
Transportation Affordability

• Low and affordable fares
• Operate rail and bus services as efficiently as
  possible in order to keep fares low and subsidies
  at minimum levels
• Policies that encourage economic growth housing
  and jobs - near transit stations to minimize
  transit access costs
• More balanced federal commuter tax incentives

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Fares cover less than half of NJ Transits costs
- and even less for the less affordable
citizens/regions
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NJ Transits Bus Fares are Amongthe Lowest In US

• Single Ride Monthly
• NYC Bus 2.00 81
• Philadelphia-Chicago 2.75 70-79
• Pittsburg-Minneapolis
• Seattle, Denver, 1.75 60-69
• San Jose
• Atlanta 1.75 50-59
• NJ Transit 1.35 49
• Adjusted for inflation, NJ Transit bus fare is
  less expensive today than in 1979, when NJ
  Transit was established.

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NJ Transits Cost-efficient Operations Helps Keep
Fares Low and Affordable
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Ridership Growth Increase Revenues and helps
Stabilize Fares
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Transit Oriented Development (TOD)Makes Transit
Even More Affordable

• Brings sustainable economic growth to the
  community
• Helps build a community place around transit
• Minimize need for automobile ownership and usage
• NJ Transit analysis of residential TODs indicate
  a 10-25 trip reduction in peak periods and
  10-15 daily trips
• National study indicates a 44 reduction in daily
  vehicle trips- a significant daily savings given
  high gasoline prices

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New Jersey is a Leader among the Stateson TOD

• Legislature passed and Governor signed law to
  provide an Urban Transit Hub Tax Credit
• 9 eligible municipalities major New Jersey
  cities
• 75 million of qualified capital investment
  receive tax credits for 100 of investment over
  10 years

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TOD - Case Study (Success)

• Morristown Station
• 300 space lot
• 218 residential units
• 8000 sf of retail
• 750 space parking deck
• 415 commuter spaces
• Supportive community
• Determined developer
• Strong apartment market
• Construction underway

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TOD Case Study (Under Review)

• Somerville Station
• Great Location
• Local Champion
• Comprehensive Visioning Process
• Consistent leadership and professional admin
• State, County and local cooperation

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Transit Benefits Economic Development
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Transit Benefits Measuring the Value

• Generates economic development
• Reduces vehicle miles traveled by 2.3
  billion/year
• Saves 118 million gallons of gasoline annually
• Reduces 589,000 tons of CO2e annually
• -- With minimum out of pocket costs