Platform Update

Oct. 1, 2008

ACTION ITEMS

GOVERNOR PROPOSES SCALING BACK TURNPIKE PLAN: Governor Corzine said yesterday that he's open to approving toll increases to fund transportation improvements, but the potential hikes will have to be more modest than what's been proposed. He has asked the Turnpike Authority to scale down its plan to raise $11 billion in revenue. The Governor added, "I want to have a minimal increase matched against what is absolutely essential for public safety and congestion, and that maximizes how we can create jobs today.'' The Governor has promised to review the Turnpike Authority’s plan for transportation improvements in order to ensure that the agency is being run efficiently before approving the proposal.

A fourth public hearing has been scheduled for Friday, Oct. 10, 9 a.m. to 12 p.m., at the Turnpike Authority headquarters in Woodbridge. For more information, click here.

The New Jersey Turnpike Authority has been calling for tolls to be increased on the Turnpike by an average of 60 cents per passenger car in 2009, an additional 90 cents in 2012 and an additional 30 cents in 2023. The cost of driving the length of the Turnpike is currently $6.45 – in 2009 that cost would be $9.68, in 2012 it would rise to $14.52 and in 2023 it would amount to $16.13. Tolls on the Garden State Parkway would rise at a similar rate. The current average of 35 cents per passenger car would rise to 50 cents next year, 75 cents in 2012 and 85 cents in 2023. Tolls have not been increased since 2000 on the Turnpike and since 1989 on the Parkway.

Revenue generated from the proposed plan would be used to widen the NJ Turnpike (Exit 9 to 6) and Garden State Parkway Parkway (Exit 80-63), invest $1.25 billion in the Access to the Regions’ Core (ARC) rail tunnel connecting New York and New Jersey, and to repair and replace various aging bridges.

CHAMBER TESTIFIES ON TURNPIKE PROPOSAL: The State Chamber testified at the first public hearing on the toll proposal on Sept. 23. Michael Egenton told the Turnpike Commissioners that the New Jersey Chamber of Commerce supports the proposed increase in tolls to provide funding for the infrastructure improvements outlined by the New Jersey Turnpike Authority. Egenton also said the State Chamber also supports the construction of the ARC tunnel as a partial remedy for traffic congestion, but cannot support using toll revenue as a funding source for construction of the tunnel at this time. Questions regarding the legality of using toll revenues for this purpose, whether other funding alternatives have been fully explored, and how the Transportation Trust Fund will be utilized for the project, if at all, need to be answered.

Transportation infrastructure is key to the state's economic future, as is fiscal responsibility. While there is support for promoting mass transportation, Egenton said there is concern that significant contributions to New Jersey Transit in each of the next two years will create a void to be filled by taxpayers in the third year. The State Chamber has consistently opposed “one-shot” revenue sources, especially when they are used to pay for regular operating expenses. Support of this aspect of the proposal would be premature, based on this concern.

Finally, although the State Chamber supports most of the components of this proposal, we continue to be disappointed in the lack of a long-term, stable, and dedicated funding mechanism for the Transportation Trust Fund.

ITEMS OF INTEREST

LIBERTY CORRIDOR: Under the direction of U.S. Senator Robert Menendez, the Liberty Corridor Advisory Board has been formed to assist in the education and promotion of various projects associated with Liberty Corridor. An area of seven northeastern counties and one western county, Liberty Corridor is where multi-modal transportation systems, such as ports, highways, airports, rail lines and research facilities, play a vital role in linking and nurturing the base economy of manufacturing and commerce with global implications. It also addresses critical national and regional economic and transportation needs.

Several committees have been set to address specific areas. Michael Egenton of the State Chamber participated in the Liberty Corridor Environment and Redevelopment Committee, which met on September 12. The meeting’s discussion centered on two general areas – the redevelopment of brownfields within the Liberty Corridor and greening techniques for Liberty Corridor projects. Follow-up meetings will focus on specific strategies and projects. Once completed, this information will be converted into a report from the Environment and Redevelopment Committee to the full Liberty Corridor Advisory Board.

PENNSYLVANIA: A proposal to lease the Pennsylvania Turnpike to a private group for 75 years has stalled after the Federal Highway Administration (FHWA) last month rejected a plan to raise transportation dollars by tolling I-80. The federal highway agency said Pennsylvania’s application did not meet requirements that the tolls from I-80 be used for "legitimate and valid operating costs" of that highway.

Tolling I-80, the 311-mile interstate across northern Pennsylvania, was a core provision of a transportation funding law, Act 44, enacted by the legislature last year. A consortium formed by Abertis Infraestructuras S.A. of Barcelona, Spain, and Citi Infrastructure Investors of New York, has offered to pay the state $12.8 billion for the right to operate the Turnpike for 75 years. Pennsylvania Governor Ed Rendell estimated that payments could generate about $1 billion a year for transportation projects.

GENERAL AVIATION: The Assembly Transportation, Public Works and Independent Authorities Committee recently heard testimony from the New Jersey Aviation Association, the Mid-Atlantic Aviation Association and others on several concerns regarding general aviation airports. The general aviation industry is an integral part of the U.S. economy and a prime catalyst for economic growth, providing 1.3 million jobs and over $102 billion. Several companies in New Jersey take advantage of the safety, speed, convenience and flexibility that corporate aircrafts provide. However, general aviation in New Jersey faces serious challenges. In the early 1980s there were 65 privately owned, public use airports. The number has dwindled to 43 with development pressures leading to a number of closures. Issues highlighted at the hearing include tax burdens, zoning and eminent domain issues, sprawl and safety hazards.

Chairman John Wisniewski invited the representatives to return in the near future and suggested that the various groups collaborate and come up with a list of potential solutions to address their concerns.


Click here for the previous update.

Michael Egenton
Vice President , Environment & Transportation
New Jersey Chamber of Commerce
216 West State Street
Trenton, NJ 08608
Phone: (609)989-7888 Ext. 119
Fax: (609)989-9696
Michael.Egenton@njchamber.com