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Yesterday, New Jersey Transit’s board approved a $1.79 billion operating budget and $1.39 billion capital program for fiscal-year 2010, which began July 1. The spending plan does not include a fare increase for the second-straight fiscal year, avoids major service cuts, and provides funds to advance the Mass Transit Tunnel and other key projects, the agency said.

About half of the revenue projected in the FY10 operating budget will be generated by fares, with the remainder coming from a combination of commercial revenue, state operating assistance, and state and federal reimbursements.

The operating budget reflects a reduction in state operating assistance at $62 million because New Jersey needs to balance its own budget, NJ Transit said. The agency has implemented cost-cutting measures to offset the reduction, such as planned furloughs that have generated administrative savings of $22.5 million, wage freezes and labor contract savings.

The operating budget will provide funds for new rail service to the Meadowlands sports complex and enhanced bus service along Bloomfield Avenue, while the capital program will provide funds for state-of-good-repair projects, fleet modernization programs and other initiatives. For example, NJ Transit in FY10 plans to acquire more than 300 multi-level rail vehicles, and more than 50 electric and dual-powered locomotives, and upgrade the Metropark, Newark Penn Station, Ridgewood, Somerville and South Amboy stations.

Meanwhile, the agency also announced it plans to launch rail service to the Meadowlands Sports Complex on July 26. The service will provide connections to 10 of NJ Transit’s 12 rail lines, and accommodate riders heading to New York Giants football games and other sporting events. In addition, the agency authorized a long-term lease agreement with the Port Authority of New York and New Jersey to use a portion of the Hoboken ferry terminal to continue operating ferry services.