Transportation Trust Fund

[lammius]

This was a bulletin released at my place of work on Friday...

CORZINE ANNOUNCES TRANSPORTATION TRUST FUND PLAN

Governor Jon S. Corzine today unveiled a five-year plan designed to replenish and grow the Transportation Trust Fund (TTF) through a combination of financial and structural reforms. The plan will require legislative approval and the Governor indicated that he will push for swift legislative action on the plan.

The proposed plan creates a capital program of $1.6 billion annually over five years that advances critical highway and transit projects. Revenue sources for the program include the restructuring of a quarter of the State's transportation bonds--about $1.8 billion of existing bonds. By extending their average life from 7.8 to 15 years, the State saves $105 million annually from reduced debt service that will be used to replenish the TTF.

New net revenue enhancements will also come from TTF reforms including dedicating the final 1.5 cents of the existing 10.5-cent gas tax to teh TTF, which historically was diverted to the general fund. This will generate $78 million annually. Additionally, another $12 million will be gained by recapturing one half of the existing toll road contribution meant for the TTF since 2001.

The program provides $925 million annually for NJDOT to repair and rehabilitate deteriorating infrastructure, preserve critical safety projects, and increase local aid to municipalities by $25 million annually. The program also provides $67.5 million a year to NJ TRANSIT to fund repair work for infrastructure and rolling stock, as well as to advance projects of regional significance including The Trans Hudson Express Tunnel Project.

The plan contains recommendations that will enhance fiscal responsibility and public accountability, including freezing the level of TTF funds used for capital maintenance projects, and establishing an Independent Policy Oversight Board that will ensure compliance with strict guidelines for capital expenditures. The plan will also support 100,000 jobs, advance critically needed highway and transit repairs and capacity expansion projects, and begin key TTF reforms that have been endorsed by transportation policy experts.

[Jerseyman4]

......the State saves $105 million annually from reduced debt service that will be used to replenish the TTF.

Very good. I think part of the $105 million dollar savings should be used to get the state debt under control as well.

New net revenue enhancements will also come from TTF reforms including dedicating the final 1.5 cents of the existing 10.5-cent gas tax to teh TTF, which historically was diverted to the general fund. This will generate $78 million annually. Additionally, another $12 million will be gained by recapturing one half of the existing toll road contribution meant for the TTF since 2001.

What is the general fund, the state budget?

So theres no gas tax increase, this will make a lot of people happy but NJ really does have a low gas tax. Raising it 1 to 5 cents a gallon would not be a big deal in my opinion.

[lammius]

Yeah NJ's gas tax is crazy low. It's below the national average and well below most other northeastern states. I wouldn't be opposed to an increase.

The general fund is the state's greater budget. I think Corzine will have to make a proposal for some way to make up for the shortfall (granted it's a fairly small shortfall).