NJ Transit fare hike and dumping the property tax rebate

There were two significant fiscal austerity changes proposed by the current administration that are sure to get NJ residents blood boiling (including mine). The first was the announcement of NJ Transit's fare hike proposal(from this link at NJTransit.com):

March 5, 2010
NJT-10-020

NEWARK, NJ — Citing a looming $300 million budget deficit for the coming fiscal year, NJ TRANSIT today released a proposal to increase fares by 25 percent systemwide and trim service proportionate to recent ridership declines.

Under the proposal, a one-zone local bus trip or one-way ticket on Newark or River Line light rail lines would increase from $1.35 to $1.70 per ride, remaining lower than base fares on transit systems in New York ($2.25) and Philadelphia ($2.00). One-way commuter rail tickets would increase about 25 percent, subject to rounding. Rail ticket prices vary based on distance, but one-way fares would rise from a range of $1.25-$13.25 to a range $1.50-$16.50. (For example, a trip from Metropark in Iselin, NJ to New York Penn Station today is $8 and under the plan would rise to $10.) Hudson-Bergen Light Rail tickets would increase from $1.90 to $2.40 per trip.

“We recognize that any increase is a burden for our customers, particularly during a recession,” said Executive Director Jim Weinstein. “However, we have worked to keep local bus fares below the regional average and preserved some important discounts for seniors and people with disabilities, as well as for students and others who are among the most transit dependent.”

As a daily rider on NJ Transit you cannot feel good about this. But one also has to consider that our transit prices are actually pretty low by global standards and when there isn't money, there isn't money. Like it or not however, this is an additional 'tax' on the working class of New Jersey at a very difficult time.

Then this from Philly.com:

In a switch, Christie may end property-tax rebates
By Jonathan Tamari

Inquirer Trenton Bureau

TRENTON - Gov. Christie is considering scaling back or eliminating property-tax rebates in his budget proposal, a move that could yield significant savings but would mean going back on a campaign pledge.

As Christie tries to close a projected $11 billion deficit next fiscal year, scenarios under discussion include slashing the popular but expensive rebates, according to two administration officials with knowledge of budget talks.

They stressed that no final decisions had been made. Christie is scheduled to unveil his budget March 16.

At a cost last year of $1.1 billion, rebates form one of the largest pools of money in the budget. Lawmakers in both parties have said privately for weeks they expect cuts to the program.

Rebates are one of the most tangible ways state government tries to offset New Jersey's high local property taxes, which average nearly $7,300. The program is so large and costly, though, that it is a prime target for governors seeking spending cuts.

We have never supported the NJ Property Tax Rebate program here at NJTaxRevolution and have commented on it many times. When productive citizens who pay most of the property taxes are not eligible for the rebates while apartment renters get checks, something is seriously wrong. The rebate program has always been a political gimmick and resembles welfare far more than an actual refund for taxes paid. The state should scrap it and actually work on the problem of skyrocketing property taxes.

And if politicians want to give out checks to apartment dwellers or others they deem politically important to them, let them pass the legislation in the sunlight. And let the citizen determine whether or not they were responsible uses of the taxpayers money. But don't hide behind a 'fake' rebate to play Santa Claus with our tax money to buy votes.

Let's hope that this is just the beginning for the governor. The Democrats are going to scream bloody murder. And I am glad. Because if they didn't, I would know the governor wasn't really cutting anything.

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