LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 1190
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JULY 10, 2024
SUMMARY
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Synopsis: |
Establishes NJT Office of Customer Advocate and Rider Advocacy Commission. |
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Type of Impact: |
Annual increase in State expenditures. |
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Agencies Affected: |
New Jersey Transit Corporation; Department of the Treasury. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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State Expenditure Increase |
$2.2 million – $4.4 million |
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· 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 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.
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.
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Cost Estimate for NJT Office of Customer Advocate and Rider Advocacy Commission (Dollars in Thousands) |
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Cost per position |
$129.45 |
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Fringe benefit rate |
69.5% |
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Cost per position including fringe benefits |
$219.41 |
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Total cost of 10 positions |
$2,194.12 |
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Total cost of 20 positions |
$4,388.24 |
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Section: |
Authorities, Utilities, Transportation and Communications |
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Analyst: |
Assistant Fiscal Analyst |
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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.).