Leaving door open for
state reduction debt options
Assembly Transportation, Public Works and Independent Authorities Committee Chairman John S. Wisniewski, left, unveiled his alternative on Feb. 20 to Governor Jon S. Corzine’s fiscal restructuring and debt reduction plan.
The Wisniewski alternative would implement a combination of toll and motor fuels tax increases that would bring New Jersey’s per mile toll and per gallon gas tax more in line with national averages and neighboring states.
To finance capital improvements to our toll roads, the plan would require the following toll increases along each of New Jersey’s three toll roads:
• an immediate 25 percent increase in tolls on the New Jersey Turnpike, followed by 25 percent toll increases in 2012 and 2016
• an immediate $.15 increase in tolls, to $.50 on the Garden State Parkway, followed by a an increase to $.75 in 2014
• an immediate increase in tolls to $0.75 on the Atlantic City Expressway, followed by an to $1.00 in 2014
These increases would allow for widening projects to move ahead and for much needed improvements to be made to our crumbling infrastructure on an ongoing basis, without the creation of a private or semi-private agency.
Specifically, the Wisniewski alternative endorses the first three elements of the Governor’s fiscal restructuring proposal, with some minor changes. Under the plan, state spending would be frozen at 2008 levels, requiring between $2.5 billion and $3.5 billion in cuts to the budget.
Future spending increases would only be permissible when accompanied by a recurring revenue source, with further savings to be found by encouraging adoption of the remaining recommendations from the 2006 special legislative session on property tax reform.
Also, there would be restrictions on the length of newly issued debt so that the debt payments do not exceed the useful life of the capital improvements being funded.
To finance the state’s Transportation Trust Fund, the Wisniewski alternative would implement a $0.18 gas tax increase at a rate of $0.06 per year over the next three years, constitutionally dedicated to the TTF.
Thereafter, the gas tax would be adjusted annually for inflation, based on the Consumer Price Index. The plan also would require increasing the rent for all toll road rest stop gas and concession stations, as well as exploring the possibility of selling or leasing the air rights along all three toll roads.
These measures would create a recurring revenue source in excess of $1.6 billion annually, which would allow the TTF to fund projects on a 60/40 split between pay-as-you-go and bonded revenue.
The Wisniewski alternative also would investigate options for paying down substantial portions of the state’s existing $32 billion debt burden through a potential sale or lease of the state lottery and the implementation of a water consumption tax.
A sale or lease of the state lottery – a non-infrastructure asset – could net up to $10 billion, which could be used to pay down existing state debt, without significantly impacting the day-to-day lives of New Jersey motorists.
Finally, the Wisniewski alternative would create a permanent Commission on Fiscal Oversight, comprised of Executive, Senate, and Assembly members, which would further investigate reforms that have the potential to create continued sound fiscal policies for the future.
EDITOR'S NOTE: To find out what your ride would cost as per Corzine's current plan see the following Web site: http://www.nj.com/news/bythenumbers/.