Aside from personal and political agendas, there seems to be no mention of whether the system is being upgraded because of Nextel first-wave rebanding moving NPSPAC 15 MHz down or not. Older radios, i.e., Maxtracs, Syntor-X, Syntor X-9000 (and I'm sure their M/A-Com equivalents), cannot be converted down without recoding imbedded firmware. Even Spectras can't do the trunked memory map without firmware replacement and reprogramming, which would be prohibitive in large fleets; they certainly can't do 700 MHz and if they are not already Astro Spectras, they won't do P25 (with very specific exceptions, 700 MHz operation MUST be digital). That can be more work in time and materials than simply replacing radios. The Transition Administrators are working for Nextel (they started out being neutral, but...) to "make whole" each of the systems. That generally means that if you have an analog-only radio, you get analog-only functionality after your transition. The decisionmakers at NJSP and NJTPA may have decided to incorporate P25 and the capability to implement 700 MHz at some future time. That's money above the scope of the transition, but at this opportunity, probably money wisely spent -- and likely money that is at least partially subsidized by:
1) Nextel
2) UASI (probably, although UASI grants have typically been a money grab to buy toys for adult girls and boys)
3) DOT funding sources (transportation grants)
Having worked radio in four states now, operational people and politicians seem to see radio as a set-and-forget system where, once you have it, now you can pile boxes on top of it and just call the shop whenever "it's not working" (wonder why?). Honestly, HVAC systems get better support in some places than their radio systems do. When you make a committment to anything more than a simplex system, you have to also make a committment to take frequent opportunities to monitor it (for performance degradation, not listening) and make improvements whenever you have the financial opportunity to do so.
I think there's more to the story - and if that's so, allowing the system to be static (stationary, not radio noise) is the irresponsible thing.