(The following article by Joe Malinconico was posted on the Newark Star-Ledger website on August 17.)
NEWARK, N.J. — Attempting to draw attention to New Jersey’s impending transportation funding crisis, a nonpartisan advocacy group has put together a list of $7 billion worth of projects that are in jeopardy.
The group, New Jersey Alliance for Action, is trying to pressure legislators to come up with a solution for replenishing the Transportation Trust Fund, which is expected to run out of money for new highway and mass transit projects next July.
The list of imperiled projects includes the proposed Route 206 bypass in Somerset County, repairs to the Stickle Bridge on Route 280 in Newark and replacement of the Route 3 bridge over the Passaic River.
Many transportation experts and some public officials say the only way to resolve the funding crisis will be to raise New Jersey’s 10.5-cent-per-gallon gasoline tax sometime in the next year.
But most elected officials have ducked the issue over the last couple years.
“There’s such a paranoia about discussing any kind of tax increase,” said Phil Beachem, executive director of the Alliance for Action, which represents business, labor, academic and government groups. “They’ve punted on this.
“The problem is we’re going to reach a point where it’s too late to fix it for next year,” Beachem said. “You can’t just turn on a spigot and the projects start flowing.”
Acting Gov. Richard Codey has said he would address the trust fund crisis sometime after the November gubernatorial election. The Republican candidate, Doug Forrester, opposes increasing the gasoline tax, while Democratic nominee Jon Corzine says it should be one of the last things considered.
This year, the trust fund will provide the money for $1.3 billion of the state’s $2.7 billion transportation budget for capital projects. The rest comes from the federal government, but that money would be lost if the state could not come up with its share.
Over the years, the trust fund has used borrowed money and tax revenue to pay for projects. By July, almost all of the program’s $805 million in revenue will be needed for debt payments, leaving about $38 million for new projects.
“Everything in the plan for the next three years is in jeopardy,” state Transportation Commissioner Jack Lettiere said. “There may be a few things we can still do. Not many. We’re getting close to that point. I’m getting a little nervous.”
The impact of a trust fund collapse would extend far beyond the elimination of scores of major projects. Experts said NJ Transit fares could rise substantially if the trust fund runs out of money because the agency relies on more than $300 million a year from the program to cover its operating expenses.
The Alliance for Action tailored its list of at-risk projects to the realities of state politics by tabulating the value for each legislative district. One of the places that has the most to lose is the 16th District, which covers parts of Somerset and Morris counties.
Assemblyman Peter Biondi (R-Somerset), who represents the district, also happens to be one of the sponsors of a bill that would impose reforms on the way the trust fund spends its money, such as a ban against using it to cover operating expenses.
“Before we re-fund it, we have to reform it,” Biondi said. “We can’t ask people to pay more taxes unless we have reforms in place.”
But Biondi and his Democratic co-sponsor, Assemblyman John Wisniewski of Middlesex County, have not been able to get support from their colleagues to move the reform bill through the Legislature.