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Yesterday, the New Jersey Transit board adopted a $1.7 billion operating and $1.3 billion capital budget for fiscal-year 2009. The spending plans include funds to maintain service levels despite rising costs, and keep the system in a state of good repair.

The state budget included an additional $60 million in operating support for NJ Transit, which the agency will use to offset increased fuel, power, parts and material costs. To further offset expenses, NJ Transit will cut administrative costs by 20 percent.

The capital budget includes funds to purchase 326 multi-level rail cars, 110 electric multiple units, and 53 electric and dual-powered locomotives. The board already has approved awarding a $310 million contract to Bombardier Transportation to design, engineer and manufacture 26 dual-powered locomotives, which can operate in both electrified and non-electrified territory. The units are scheduled to be delivered in 2011 and 2012.

The capital plan also provides funds to renew infrastructure, conduct preventative maintenance and improve stations. In addition, the budget enables NJ Transit to continue work on the Access to the Region’s Core project, which will double rail capacity under the Hudson River and into Penn Station, and extend the Hudson-Bergen light-rail line to 8th Street in Bayonne.