NJ Transit proposes taking out $300 million loan
New Jersey Transit is considering taking out a $300 million line of credit with a Canadian bank to cover expenses as the state awaits federal funds.
NJ Transit unveiled the proposal on Friday, four days after the agency proposed a roughly 9 percent fare hike to help close a $60 million budget gap.
An NJ Transit spokeswoman says the proposed loan from Royal Bank of Canada was chosen after a competitive process and the funds would be used as a “cash flow management tool.”
NJ Transit incurs expenses throughout the fiscal year but receives federal funds at the end of it.
The agency took out a $241.5 million loan last year from the transportation trust fund to cover costs.
The board is set to consider the loan in May.
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