This report by the Alan M. Voorhees Transportation Center is intended to better inform public consideration of transportation funding in New Jersey by illuminating various costs and benefits that typically have not been taken into account outside of the transportation community. For instance, highway proponents historically have argued that road improvements “pay for themselves” through user fees. Yet, this argument fails to account for numerous public costs, such as enforcement, road and roadside maintenance, and street lighting, which require ongoing subsidy. The purpose is not to argue against highway funding, but rather to encourage better understanding of the true user and taxpayer costs of different modes of transportation, as well as the benefits transit service brings directly to its riders and indirectly to its service community. These indirect costs and benefits involve congestion, air, noise and water quality, energy consumption, land use, urban redevelopment, transportation options for the disadvantaged, traffic accidents, and public health and safety.

The report opens with a section that examines the obstacles the transit industry has confronted with policymakers and the public in establishing its viability, both nationally and in New Jersey. The following section will examine characteristics of New Jersey that have enabled it to overcome many of those obstacles and become a national leader in transit development. The paper will address issues of congestion, energy, conservation, economic development, safety, and security.