FISCAL NOTE TO

ASSEMBLY, No. 2343

STATE OF NEW JERSEY

DATED: DECEMBER 30, 1996

      Assembly Bill No. 2343 of 1996 amends the New Jersey Transit Corporation's Elderly and Handicapped Reduced Fare Program, which currently permits senior citizens (age 62 and over) and handicapped citizens to ride at reduced fares during off-peak hours. Under this bill, senior citizens and handicapped citizens would be permitted to ride at reduced fares at all times.

      NJ Transit (NJT) updated ridership survey information it developed to provide a fiscal estimate for a previous, similar proposal, Assembly Bill No. 177 of 1994, and, as a result, NJT now estimates that it would incur a $5.0 million cost under this bill. Of the total cost, about $3.0 million would be revenue that is forgone and $2.0 million would be for additional, reduced fare reimbursement payments to private carriers. For comparison, NJT estimates that the current offpeak, reduced fare program costs about $10 million, $6.0 million in forgone revenue and $4.0 million in reimbursement payments to private carriers.

      Based on the ridership surveys completed by NJT and utilized by the corporation to update its cost estimate, the Office of Legislative Services concurs.

This fiscal note has been prepared pursuant to P.L.1980, c.67.