Top lawmaker unveils plan to set aside $500M for transit

TRENTON, N.J. (AP) — New Jersey would set aside $500 million a year for New Jersey Transit's operating budget under a plan a top lawmaker unveiled Friday.

Democratic Senate President Steve Sweeney said he will seek a constitutional amendment to make sure the money is not diverted from transit by the Legislature and governor.

The figure Sweeney is seeking amounts to just over 20% of the transit agency's 2019 budget.

The money would come from different sources, Sweeney said: $300 million would come from revenue the state brings in from corporate business taxes; $125 million would come from the New Jersey Turnpike Authority; and $75 million from the state's clean energy fund, which gets funding from fees paid by utility customers.

Sweeney said he is proposing that businesses pay the lion's share of the $500 million because they benefit by their workers being able to get to and from their jobs.

It's unclear whether the money from the turnpike and the clean energy fund would result in higher tolls or fees. But business taxes could be affected by the plan.

The business tax was temporarily increased in 2018 over four years by an average of 2 percentage points, to 11.5%. It was to revert to 9% in 2022 but would remain at 11.5% under Sweeney's plan until 2022.

Democratic Assembly Speaker Craig Coughlin agrees more has to be done to address “multiple areas of concern” with transit, spokesman Kevin McArdle said. He stopped short of explicitly backing Sweeney's plan.

Democratic Gov. Phil Murphy looks forward to assessing lawmakers' proposals, spokeswoman Alyana Alfaro said.