As legislative leaders in New Jersey advance the Corporate Transit Fee proposed by Governor Phil Murphy in his FY25 budget, a coalition of over 40 organizations and more than 10 legislators are advocating for the allocation of $70 million from the Clean Energy Fund to NJ Transit bus electrification projects. This move is backed by Sen. Andrew Zwicker’s Budget Resolution S4468, which aims to ensure these funds are used as intended for clean energy initiatives.
Drew Tompkins, Director of the Jersey Renews Coalition, emphasized the benefits of electric buses: "Electric buses offer a tangible solution to reduce air pollution from diesel emissions, improve air quality, and overall quality of life, particularly in urban and environmental justice communities."
The Corporate Transit Fee maintains the Corporate Business Tax surcharge for businesses with profits exceeding $10 million, generating an estimated $800 million to support NJ Transit. The fee is retroactive to January 2024 and will provide an additional $200 million in operating funds.
Alex Ambrose, policy analyst at New Jersey Policy Perspective (NJPP), stated: "Taxing corporations to fund NJ Transit would be a historic first for New Jersey, but lawmakers will still have to find ways to support the agency’s transition to clean energy."
Governor Murphy's FY25 budget has faced criticism for allocating $70 million from the Clean Energy Fund towards NJ Transit's operating budget rather than climate change initiatives. Richard Lawton, Executive Director of the New Jersey Sustainable Business Council, remarked on this issue: "Using a portion of the Clean Energy Fund to invest in the electrification of public transit will yield ‘triple bottom line’ benefits in cleaner air, improved public health, and a more vibrant green economy using superior 21st-century technology."
Supporters of this resolution include Sen. Vin Gopal, Sen. Linda Greenstein, Sen. Patrick Diegnan, Sen. Raj Mukherji, Sen. Britnee Timberlake, Asw. Shama Haider, Asw. Jessica Ramirez, Asw. Alixon Collazos-Gill and Asw. Garnet Hall.
Anjuli Ramos-Busot from Sierra Club noted: “NJ Transit’s lack of proper funding has hit hard on the agency’s effective operability and meaningful capital investments needed for transportation services.”
Debra Coyle from NJ Work Environment Council highlighted past diversions from the Clean Energy Fund: “In recent decades, over $2 billion was diverted from the Clean Energy Fund that should have supported New Jersey’s transition to clean renewable energy.”
Ed Potosnak from New Jersey LCV stressed: “The transportation sector is the single largest emitter of dirty air in our state.”
Amy Goldsmith with Clean Water Action New Jersey called for equitable funding practices: “We cannot ask vulnerable and marginalized communities to shoulder the most harmful impacts of air pollution – we need to fully fund NJ Transit.”
Doug O’Malley from Environment New Jersey linked recent infrastructure failures due to heat waves with underfunding issues: “The transit disaster that the heat wave unleashed on NJ Transit commuters is a symbol of a lack of investment in urgent NJ Transit capital expenses.”
As budget negotiations continue ahead of a possible vote tomorrow in Senate Budget and Assembly Appropriations committees before July 1 deadline approaches.
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