NJ Transit is nearly $1 billion short. Taxing corporations like Amazon, Tesla could fix that.

3-minute read

Public transit is not just a way to get around — it’s the backbone of New Jersey’s economy. Across the state, millions of residents rely on NJ Transit buses and trains for their daily commutes, medical appointments, shopping trips, and cherished family moments.

During my 30 years serving in the state Legislature, I heard from countless constituents who shared their stories about the pivotal role that reliable bus and train service plays in their lives. 

From parents who rely on the morning bus to get their kids to school on time to workers whose job prospects hinge on catching the right train, the reliability of bus and train service can be the difference between a smooth, productive day and one filled with frustration and setbacks.

Yet, despite NJ Transit’s importance to families and the state, the future of the agency is in jeopardy with a nearly $1 billion budget deficit projected for next year, even after the agency voted to raise fares by 15%. This budget crisis is unprecedented in its size and scope, but it was also entirely predictable.

Fortunately, Gov. Phil Murphy’s proposed Corporate Transit Fee offers a ray of hope. This fee targets the biggest and wealthiest corporations, ensuring that those with annual profits exceeding $10 million contribute their fair share to NJ Transit. 

Taxing corporations is the fairest way to fix NJ Transit

Advertisement

NJ Transit price hike: What to know about rates going up on July 1

NJ Transit’s board unanimously approved a fare increase of 15% on July 1 and 3% every year after that.

The agency has never had a dedicated source of state funding, and it stands as the only major transit agency in the country without one. Instead, its operating budget is cobbled together year after year, relying on high fares, tax dollars diverted from other state programs, and the agency’s own capital fund meant for new and improved physical infrastructure. 

Creating a dedicated funding source from the Corporate Transit Fee presents a fair and common-sense solution that will benefit commuters and businesses alike. The fee is targeted and only applies to profits, not revenue, so the few corporations that pay it remain wildly profitable. 

And because the fee is collected on profits earned in New Jersey, not just on companies headquartered here, it is primarily paid by large multinational corporations and retailers that will continue to do business here. This will not stop companies like Tesla from selling cars in New Jersey, nor will it stop big retailers like Amazon from delivering packages here.

The corporations that pay this fee will also directly benefit from a reliable, state-wide transit system and the access it provides to New Jersey’s highly-educated workforce and customer base.

Opinion: Businesses will leave NJ if they face more corporate taxes — even to bail out NJ Transit

We cannot repeat the mistakes of the past

I fought for years to find permanent dedicated funding for NJ Transit but, each time, short-sighted thinking led the state’s leaders to adopt temporary solutions. Years of underfunding and expiring federal pandemic aid have now left the agency facing an existential fiscal crisis. Without new state funding, the agency will have to make catastrophic service cuts and even more fare hikes, leaving commuters stranded and doing untold damage to the state’s economy.

And this isn’t theoretical. My constituents experienced this first hand throughout the Christie administration when their fares were increased and service was cut, leading to riders paying more for worse service where delays, cancellations, and overcrowding became the new norm.

Now, lawmakers are doomed to repeat the mistakes of the past instead of learning from them. NJ Transit has already approved a 15% fare hike to take effect this summer, putting transit out of reach for low-income riders without fixing the agency’s budget shortfall. 

With New Jersey ranking second in the nation in the percentage of commuters using public transit, it behooves the most profitable corporations to pay their fair share for this critical infrastructure that they benefit from. 

Reliable mass transit is a necessary part of New Jersey’s economy. It means reliable access to job opportunities, customers, education, health care, and more. Reliable service even benefits those who drive by keeping hundreds of thousands of cars off the road, reducing both traffic and air pollution.

New Jersey and its commuters deserve a world-class transit system. Asking the world’s biggest corporations to help pay for it is a no-brainer.

Loretta Weinberg is the former state Senate Majority Leader and represented parts of Bergen County in the New Jersey Legislature from 1992 to 2022.