The Associated Press July 14, 2010, 2:15PM ET

NJ Transit approves capital, operating budgets

New Jersey Transit has approved a capital budget that includes the purchase of another 100 multilevel commuter rail cars and 10 dual-powered locomotives.

The agency's Board of Directors on Wednesday approved a $1.79 billion operating budget and a $1.35 billion capital program for the 2011 fiscal year, which started July 1.

NJ Transit had faced a roughly $300 million budget gap caused by ridership declines, rising fuel and operating costs, and an 11 percent reduction in its state subsidy.

To address the deficit, it raised fares by up to 25 percent for rail and intercity bus service and by 10 percent for local bus and light rail. The agency also imposed an emergency spending freeze and plans to reduce its work force by about 2 percent.

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