Galette v. New Jersey Transit Corp. · ¶65

Hinging an entity's arm-of-the-State status to the practical realities of state funding also risks arbitrary distinctions and inconsistent treatment of the same entity. These cases illustrate the problem: In the last 35 years, New Jersey's funding of NJ Transit's annual operating budget has oscillated anywhere from 15% to 46% of the budget. Brief for NJ Transit 35. Although NJ Transit maintains that it is and has always been an arm of New Jersey, it offers no meaningful way to decide how much funding is enough to prove it is “fnancially integrated with the State and fnancially dependent on it.” Id., at 34. The more apt question instead is whether the State would be formally obligated to pay the entity's judgments. See, e. g., Planters' Bank, 9 Wheat., at 907; Moor, 411 U. S., at 719.

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