Platform Update

March 2009

ACTION ITEMS

PLATFORM CHAIR MEETS WITH NEW DOT COMMISSIONER: DOT Commissioner Steve Dilts met with Platform Chair Hazel Gluck to discuss the P4P Transportation agenda and the Department’s future plans to replenish the Transportation Trust Fund (TTF). The Commissioner discussed the American Recovery and Reinvestment Act (federal stimulus bill) which will provide approximately $650 million for NJ’s highway and bridge infrastructure projects.

He also stressed the importance of the $8.6 billion ARC Transit Tunnel project and the competition for federal funds from Houston and Los Angeles. For more information on the federal stimulus bill regarding transportation related funding, the NJDOT has posted a “Question and Answer” document, available here.

Although the Commissioner could not commit to any timetable regarding the Transportation Trust Fund issue, Hazel Gluck committed the involvement of the P4P Transportation Coalition to work closely with him and the Department in the coming months to develop strategies to address the stability and long-term viability of the TTF. Commissioner Dilts said he looks forward to working with the State Chamber and the P4P Transportation Coalition and will discuss further details at the State Chamber’s breakfast roundtable session on June 9 – to register for the event click here.

In related news, Governor Corzine named Chief of Staff Ed McBride and Comptroller Matt Boxer this week to oversee distribution of New Jersey's share of $787 billion in federal stimulus money. The Governor told reporters that it is essential for New Jersey to access every available dollar from the federal government and be accountable for how the funds are used.

MOMENTUM CONTINUES ON ARC TRANSIT TUNNEL: The NJ Transit Board recently approved key agreements with Amtrak and the Port Authority of New York and New Jersey to establish frameworks to ensure coordination and efficiency during the multi-year construction phase of the ARC (Access to the Region’s Core) Transit Tunnel project. Additionally, the Federal Transit Administration last month issued a Record of Decision completing the five year environmental review process and clearing the project for $3 billion in federal funding and final design.

This ARC Transit Tunnel project is anticipated to double the number of trains that can travel under the Hudson between New York and New Jersey from 23 to 48 per hour. The new service also would allow more NJ Transit riders to reach New York without having to change trains in Newark or Secaucus. The extra train service is expected to eliminate 22,000 automobile trips a day. The project is expected to be completed by 2017 and groundbreaking is targeted for this Summer.

Advocating for the prioritization and funding for the ARC is a primary goal of the P4P Transportation Coalition.

ITEMS OF INTEREST

TWO STUDIES RELEASED ON NATIONAL INFRASTRUCTURE FUNDING: Several governors met with President Obama last week to discuss the inclusion of governors as major players in shaping the nation's next long-term federal infrastructure plan. Congress is scheduled to take up the legislation this spring. The governors suggested that Congress and the White House need to explore other sources of money, such as borrowing, increased use of tolls, public-private financing and a system in which drivers would be charged according to the number of miles they travel. In conjunction with the meeting, the National Governors Association released their report - An Infrastructure Vision for the 21st Century – which looks at new ways, both public and private, to finance infrastructure needs. To view the report, click here.

The National Surface Transportation Infrastructure Financing Commission, the blue-ribbon group that is developing future transportation funding options, also released a report last week entitled Paying our Way – A New Framework For Transportation Finance. Their report offers specific recommendations for increasing investment in transportation infrastructure while at the same time moving the Federal Government away from reliance on motor fuel taxes toward more direct fees charged to transportation infrastructure users. The Financing Commission’s recommendations are timely and provocative, as the nation grapples with staggering shortfalls in infrastructure funding. To view the report click here.

MASSACHUSETTS CONSIDERS GAS TAX: Massachusetts is considering raising their gasoline tax by 19 cents a gallon -- to a nation-leading 42.5 cents. The proposed increase is less than the 27-cent-per-gallon increase Governor Patrick’s Administration was originally considering, which would have potentially raised an estimated $702 million in annual revenue. Governor Patrick said that he would not seek a tax increase without getting legislative support for overhauling their state's transportation system, such as eliminating the Massachusetts Turnpike Authority. At a recent meeting of business representatives, Governor Patrick told an audience of 600 attendees that resolving the state's problems long-term would require either a toll increase or a gas tax hike. A show of hands among the participants revealed widespread support for a gas tax hike as the most equitable means for spreading transportation costs.

VMT NOT ON PRESIDENT’S AGENDA: President Barack Obama last week rejected Transportation Secretary LaHood’s suggestion that the Administration consider taxing motorists based on how many miles they drive instead of how much gasoline they buy. LaHood said to reporters that gasoline taxes that for nearly half a century have paid for the federal share of highway and bridge construction can no longer be counted on to raise enough money to keep the nation's transportation system moving. "We should look at the vehicular miles program where people are actually clocked on the number of miles that they traveled," the former Illinois Republican lawmaker said in the AP interview. A VMT system would require all cars and trucks be equipped with global satellite positioning technology, a transponder, a clock and other equipment to record how many miles a vehicle was driven, whether it was driven on highways or secondary roads, and even whether it was driven during peak traffic periods or off-peak hours.

NJ TRANSIT TO REPLACE AGING RAIL CARS: NJ Transit officials have issued requests for proposals to replace their aging fleet of rail cars with similar cars that are powered by motors in each car instead of being hauled by a locomotive. NJ Transit's current fleet includes rail cars hauled by electric locomotives that are not able to meet the start-and-stop demands of some of its rail lines. The agency is also acquiring the last 100 multilevel rail cars, with 200 of them on the railroad now. The new multilevel cars, which have entered service during the past two years, are heavier than single-level rail cars.

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