Governor Murphy’s SFY2025 detailed budget recommendations for the Department of Transportation (DOT) total $1.9 billion, an 8% decrease of $16.1 million from the SFY 2024 budget allocation of $2 billion. The reduction reflects cuts in local improvement projects and the elimination of a SFY 2024 supplement for winter operations, which does not extend into SF Y2025.
The Budget and Language recommendations remain unchanged from the previous year, highlighting direct state services for SFY 2025 for the management of financial resources to support transportation services pending the approval of the Director of the Division of Budget and Accounting. For more on the Governor’s overall budget proposal, please see our SFY2025 Budget writeup.
Below is a review of DOT’s budget and its impact on local governments.
Local Aid: The proposed SFY 2025 budget recommendations for State and Local Highway Facilities highlight shifts in funding and expenditure priorities across various programs including Direct State Services, Grants-in-Aid, State Aid, and Capital Construction.
Direct State Services: Direct State Services were budgeted at approximately $71.2 million, which remains level for SFY 2025, representing a 48% decrease from the SFY 2024 allocation of $138.2 million. Maintenance and Operations budget decreased by $66.9 million in SFY 2024 to a SFY 2025 allocation of $36.6 million. Physical Plant and Support Services and Capital Program Management remained flat at $4.6 million and $30 million.
Grants in Aid: Funding for the Local Aid and Economic Development Grants shows a recommended reduction from $20 million to $16 million, a 20% cut for SFY 2025. The reduction in funding comes from local improvement projects that ended in SFY 2024. The State Funding for Pedestrian Safety Grants is also expected to be cut by $400,000, leaving $1.4 million for SFY 2025 from the $1.8 million for 2024. Local Transportation Projects will also see a proposed decrease from $67.5 million to $54 million for SFY 2025, a 20% reduction from SFY2024 to 2025.
Transportation Trust Fund: The Transportation Trust Fund (TTF) was reauthorized by Governor Murphy on March 6, with the signing of A-4011. The TTF reauthorization provides approximately $10.37 billion in appropriations for the State’s Annual Transportation Capital Program from SFY2025 to SFY2029. Of that, an estimated $2.3 billion will be State aid for county and municipal transportation projects. The Transportation Trust Fund Authority will see a proposed increase of 5.37% from $1.57 billion for SFY 2024 to $1.65 billion for SFY2025.
NJ Motor Vehicle Commission: SFY 2025 proposed budget recommends an allocation of $84 million marking an increase of $50.8 million or, over a 150% increase of funding from SFY 2024’s funding of $33.2 million. The increase of $50.8 million in funding is attributed to an allocation for NJMVC motor vehicle operations.
Department Objective: The Department of Transportation (DOT) provides transportation systems that enhance the quality of life for residents and travelers by maintaining infrastructure, stimulating economic growth, and using advanced technology. The DOT prioritizes environmental respect and excels in customer service, serving a broad spectrum of constituencies including local governments, regulatory agencies, and advocacy groups. Central to its mission is the core values encapsulated in its "Commitment to Communities": inform, innovate, collaborate, empower, and evolve.
The DOT focuses on community-centered projects that cater to the needs of asset-limited, Income Constrained, employed (ALICE) individuals, aiming to create a safe, equitable, and sustainable system. Managing one of the nation's busiest and most complex transportation systems, The DOT balances capital investments and maintenance to stimulate the economy and ensure public safety. It supports local infrastructure through state and federal grants for road improvements and safety enhancements.
These figures are based on the Governor’s proposal and may change based on public testimony, changes by the Legislature, and discussions with the Administration before its enactment by the end of June. The League will provide further updates as the budget process continues.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.