LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 1190
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JULY 10, 2024
SUMMARY
Synopsis: Establishes NJT Office of Customer Advocate and Rider Advocacy
Commission.
Type of Impact: Annual increase in State expenditures.
Agencies Affected: New Jersey Transit Corporation; Department of the Treasury.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase $2.2 million – $4.4 million
The Office of Legislative Services (OLS) finds that this bill will likely result in an increase in
State expenditures of $2.2 million to $4.4 million annually, primarily due to the establishment
of the New Jersey Transit Office of Customer Advocate and a Rider Advocacy Commission
in, but not of, the Department of Transportation. The magnitude of these costs will depend
upon how the required changes are implemented, most notably in the potential size and staffing
for the office, which size and staffing are not specifically prescribed in the provisions of the
bill.
For the purpose of this analysis, the OLS assumes that the average cost per position of the New
Jersey Transit Office of Customer Advocate and a Rider Advocacy Commission will be about
$219,000 per full time position including fringe benefits. To effectuate the purpose of the bill
the OLS anticipates that the office will require 10 to 20 office staff including the required Rider
Advocate for a total annual cost to the state of $2.2 million to $4.4 million.
BILL DESCRIPTION
This bill establishes a Rider Advocacy Commission in, but not of, the Department of
Transportation and requires the Rider Advocacy Commission to establish a New Jersey Transit
Office of Customer Advocate. The bill authorizes the office to investigate, monitor, promote, and
advise on all customer-experience matters pertaining to the operation of the New Jersey Transit
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
FE to S1190
2
Corporation. The commission is empowered to engage and dismiss staff as necessary, including
the appointment of a Rider Advocate.
As the head of the office, the Rider Advocate is required to report directly to the commission,
and has the authority to carry out the purposes of the office, including, with the approval of the
commission, temporarily retaining expert assistants as are necessary to protect the interests of
corporation customers when exceptional circumstances arise.
The responsibilities of the office include: (1) providing information and analysis to the
corporation board of directors, Governor, and Legislature concerning the actual or anticipated
impact of any corporation board or corporation actions on customers; (2) providing customer input
and feedback to the corporation board, Governor, and Legislature, including relaying the needs
and concerns of customers to the corporation board, Governor, and Legislature; and (3)
representing the interests of customers as determined by the Rider Advocate. The office is also
required to conduct meetings with corporation customers, which are to occur at least on a monthly
basis.
Funds for the expenses of the commission are to be independent of funds for the corporation.
On or before March 31 of each year, the commission in consultation with the Rider Advocate is
required to prepare and submit a report to the Governor and Legislature on the activities of the
commission and office for the previous calendar year, including any reports provided to the
corporation board of directors. Finally, the bill repeals a provision of law requiring the corporation
to employ a customer advocate.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that this bill will likely result in an increase in State expenditures of $2.2
million to $4.4 million annually associated with the establishment of the New Jersey Transit Office
of Customer Advocate and the Rider Advocacy Commission. Notably, this bill repeals a provision
of law requiring the corporation to employ a customer advocate.
The bill provides a broad scope of responsibility for the office, reflecting some roles and
responsibilities comparable to the Office of the Ratepayer Advocate, including a role in providing
independent analysis of proposed fare changes. The office is also required to engage in regular
outreach and communication with corporation customers, and to engage in research and conduct
investigations and studies of issues impacting customers. The office will also be responsible for
publishing an annual report of its activities and conducting at least one meeting per month with
customers.
To estimate the cost of establishing the office and commission, OLS reviewed the annual cost
to operate similar State funded agencies that protect the rights of citizens. Similar to the office
and commission established under this bill, these agencies are funded through State appropriation
and are in but not of The Treasury.
FE to S1190
3
Special Government Services - Protection of Citizens' Rights Agencies (Dollars in Thousands)
Funded Average Cost Per
Agency Name Total Budget Positions Position
Appellate Services to Indigents $ 10,122 71 $ 142.56
Trial Services to Indigents $ 80,183 674 $ 118.97
Division of Mental Health Advocacy $ 8,055 87 $ 92.59
Office of Law Guardian $ 27,395 251 $ 109.14
Office of Parental Representation $ 21,683 124 $ 174.86
Corrections Ombudsperson $ 2,806.00 26 $ 107.92
State Long-Term Care Ombudsman $ 4,402.00 53 $ 83.06
Rate Counsel $ 7,020 34 $ 206.47
For the purpose of this analysis, the OLS assumes that the cost per position of the New Jersey
Transit Office of Customer Advocate and a Rider Advocacy Commission will be about $219,000
per full time position including fringe benefits. To make the purpose of the bill the OLS anticipates
that the office will require between 10 and 20 office staff including the required Rider Advocate
for a total cost to the State of between $ 2.2 million to $4.4 million annually.
Cost Estimate for NJT Office of Customer Advocate and Rider Advocacy Commission
(Dollars in Thousands)
Cost per position $129.45
Fringe benefit rate 69.5%
Cost per position including fringe benefits $219.41
Total cost of 10 positions $2,194.12
Total cost of 20 positions $4,388.24
Section: Authorities, Utilities, Transportation and Communications
Analyst: Michael D. Walker
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).
Statutes affected: Introduced: 27:25-5.27