NJDOT/NJ TRANSIT
Capital Program

The New Jersey Department of Transportation (NJDOT) and NJ TRANSIT prepare a Transportation Capital Program annually which lists all projects that can be funded from the Special Transportation Fund (more commonly known as the Transportation Trust Fund).

This project list is submitted each year on March 1 to the Legislature for review and approval. The Legislature makes any necessary changes and provides its final decisions in the Appropriation Act which takes effect July 1 each year.

The Special Transportation Fund capital improvement funds are allocated by the Commissioner of Transportation to NJDOT, NJ TRANSIT, and Local Aid projects. The Trust Fund statute specifies that the project list and final appropriation should not exceed $1.6 billion.

A review of the NJDOT/NJ TRANSIT Capital Program Appropriation History shows how funds have been distributed between NJDOT, NJ TRANSIT, and Local Aid since 1985 and reveals that the program has increased from only $249 million at Trust Fund inception to $1.6 billion currently.

NJDOT and NJ TRANSIT must also prepare a State Transportation Improvement Program (STIP) each year for approval by the three Federal Metropolitan Planning Organizations (MPOs) that cover the State of New Jersey. The STIP provides a list of all federal and state funded projects planned for the next three fiscal years within expected Federal and State resource levels.

The MPO's must specifically approve projects programmed for Federal funds in order for the projects to be authorized for advancement by the Federal Highway Administration.

The appropriation of funds from the Special Transportation Fund to NJDOT, NJ TRANSIT, and Local Aid are separate and distinct from the Legislature's appropriation of transportation revenues (e.g., motor fuels tax, good driver surcharges, etc.) to the Transportation Trust Fund Authority. The capital project appropriations from the Special Transportation Fund function like a credit card with a limit which allows NJDOT and NJ TRANSIT to issue contracts and purchase orders for projects.

The Authority acts as the credit card bank by reimbursing project vendors from its appropriations and bond proceeds as invoices are submitted. Since most major projects take several years to complete, the Authority must translate the contract values reflected in the capital project lists to actual cash flow payments to the vendors.

NJDOT/NJ TRANSIT Capital Program
Appropriation History