The New Jersey Chapter of the Sierra Club is pleased to see the proposed creation of the Corporate Transit Fee (CTF), a tax applicable to mega-corporations in the state with a $10 million income or more specifically dedicated to fund NJ Transit. This is a good foundation and starting point to address NJ Transit’s significant fiscal problems, and it targets deep-pocketed companies.
However, the job of strengthening NJ Transit is far from finished. NJ Transit’s capital budget and the Clean Energy Fund are still being raided to cover NJ Transit’s operational costs.
It is imperative to keep the Clean Energy Fund whole so that these funds are utilized effectively for clean energy initiatives that are essential for our clean energy transition and fight against climate change. However, if lawmakers continue to divert money from the Clean Energy Fund to NJ Transit, the budget should include specific language to ensure these dollars are used to transition the agency’s buses, trains, and buildings to green energy and zero emissions.
NJ Transit requires investment on a scale large enough that NJ riders and clean energy initiatives are not the ones paying the price. We certainly do not want to see a reduction in NJ Transit’s budget, but rather believe that funds should come from a newly created dedicated source like the CTF or from the reinstatement of the Corporate Business Tax (CBT). The proposed CTF would generate only a portion of what the full CBT would generate. With the proposed fare hikes and the ongoing raids of the Clean Energy Fund and the capital budget, we believe this makes the case that the full CBT should be reinstated to help end the proposed raids. The state can fund NJ Transit while simultaneously stopping diversions from the Clean Energy Fund.
It’s also critical that the NJ Legislature increase funding for the state Department of Environmental Protection (DEP) for its staff and programs. The proposed 25% cut across the board to the Department is unacceptable, as many of the programs this government body would like to achieve for our state heavily depend on the DEP. Unfortunately, the DEP lacks the staff and resources to do these things effectively. This is why we experience backlogs in program implementation, permit approvals, rulemaking, and enforcement actions. The DEP is in need of more experts who can take us to a safer future with cleaner air and water and access to well-taken-care-of open space and natural resources. We urge the Legislature to provide a reasonable funding source so that the DEP can achieve what we ask of them.