NJ TRANSIT proposed its first-ever five-year, needs-based Capital Plan in 2020, identifying the investments required to meet organizational goals and deliver high-quality transit service across New Jersey. Through the Center for Advanced Infrastructure and Transportation (CAIT) at Rutgers University, NJ TRANSIT engaged ESI to quantify the direct and spillover economic impacts of this multi-billion dollar program on the New Jersey economy.
ESI and CAIT assessed the potential direct, indirect, and induced economic impacts of more than 100 potential capital projects included in the program. Project types spanned new station construction and station upgrades, fleet procurement, rail improvements, power distribution and substation upgrades, Bus Rapid Transit systems, and other infrastructure improvements including bridge upgrades. Economic impact and employment estimates were generated using input-output modeling, producing estimates of total economic output and employment within the New Jersey economy and state tax revenues. Results were presented by project type and by year to enable investment sequencing analysis.
The analysis demonstrated that NJ TRANSIT’s Capital Plan would generate significant direct and spillover economic activity throughout New Jersey, creating jobs and stimulating economic output across multiple sectors and geographies. The findings gave NJ TRANSIT a rigorous, project-level economic analysis of the Capital Plan, supporting internal prioritization as well as external communications with state legislators, federal funding partners, and the public.
For more information, please visit https://www.njtransit.com/njt-plans-downloads#capital-plan