New Jersey Transit may need to raise fares, but if they completely released themselves from providing bus services, they wouldn't. They could spin off NJTBO into a totally independent private firm and that firm could then compete with the other bus companies doing business in NJ.
NJT could then focus itself on rebuilding its rail infrastructure and could also expand it, and instead of actually running its own trains over these lines, it could charge private companies for the privilege of using the rails to provide passenger service. Basically, rent out its rails to outside carriers - in much the same manner as bus services operate currently in New Jersey, trains would be manned and maintained by private companies while any NJT rails would be maintained and upgraded and extended by NJT.
In addition, take any environmental or union or governmental regulations off the table completely. Allow these private firms and NJT to flourish without interference and watch NJT's budget surpluses pile up.

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