Gov. Christie wants to use the money for other transportation projects

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

Legislative Democrats were not feeling in a bipartisan mood Tuesday.

Senate President Stephen M. Sweeney (D-Gloucster) announced he and other Democratic senators have introduced legislation intended to roll back toll increases enacted to pay for the construction of the Hudson commuter rail ARC tunnel, a projected that Gov. Chris Christie halted late last year.

"It's disingenuous for the governor to, on one hand, cancel the ARC tunnel project, and on the other, continue the funding source for the ARC tunnel into perpetuity to pay for his own transportation projects," Sen. Nicholas Sacco (D-Hudson), chairman of the upper house's Transportation Committee and a sponsor of the bill "When tolls were increased along the Turnpike and Parkway in 2008, it was done so with the understanding that the funds would go to pay for the ARC tunnel, a transportation project designed specifically to alleviate congestion on our roads and improve our mass transit infrastructure. When Governor Christie canceled the ARC tunnel, he forfeited any right to those increased toll funds."

Gov. Chris Christie halted the tunnel project in Hudson County out of concern it would cost $3 billion to $5 billion more than projected. Last week, he confirmed that money saved by the action would be used as part of his proposed $8 billion five-year state Transportation Trust Fund refunding plan. The Democratic-controlled Legislature must approve the idea.

"I don't think anyone questions the fact that New Jersey needs to find a stable funding source for the TTF (Trust Fund), but I have a serious problem with funding that's earmarked for one project being diverted to other programs after the fact," Sacco said. "Governor Christie claims he was able to find a funding solution for the TTF which does not increase taxes or tolls, but he's depending on a toll increase instituted in 2008 and intended to fund a project designed specifically to improve North Jersey's road and rail transportation. If the governor's plan to stabilize the TTF depends on toll increases, he should make the case to the driving public himself, not rob Peter to pay Paul."

"Governor Christie should be up front with the tax- and toll-payers of New Jersey and make the case himself if increased tolls are needed to fund his TTF plan."

Responding to the proposed bill and Sweeney's and Sacco's comments, Michael Drewniak, Christie's press secretary, said there are, "Two things, which I guess show how uninformed the sponsors of this bill really are, or reveals that this is just plain partisan politics — probably both: Terms of Turnpike bond sales in 2009 and 2010 included the assumption of revenues from the Corzine toll increases. You cannot simply roll them back; bond covenants prohibit that. Also, there's this stubborn fact: The October 2008 resolution approving the Turnpike contribution to the ARC (tunnel construction) cost anticipated spending the money on other transportation projects if the ARC funding arrangement fell through for one reason or another.

"The full resolution is at: http://www.state.nj.us/turnpike/documents/MINUTES-10-10-08.pdf," Drewniak said. "See in particular this clause: 'In the event that New Jersey Transit Corporation later identifies an alternative source of funding for the ARC Project, or the Authority is otherwise precluded or determines it to be impracticable to continue its participation in the ARC Project, the executive director is authorized to continue in force the toll schedule memorialized in the Revised Toll Schedule without modification or interruption, and to apply such excess toll revenues generated thereby, to the extent practicable, to the additional capital projects that are referenced as "Tier II" projects in the Revised Capital Plan.'"

"The governor has put forth a responsible plan that dramatically scales back borrowing, without the sort of Wall Street sorcery that got the transportation capital fund in the shape it's in now," Drewniak said. "We also ramped up the pay-as-we-go portion of funding, and provided more than $670 million for New Jersey Transit. What is disingenuous is the failure of the sponsors and supporters of this legislation to recognize the extraordinarily difficult fiscal times we live in and the need to use very limited resources to best benefit the transportation system as a whole.

Drewniak added, "This is obviously a backdoor way to continue to complain about a cancelled project (ARC) that was projected to run billions of dollars over budget with no way to pay for those excesses. We can live with the criticism; we'll side with protecting New Jersey taxpayers on that one. Once again, the wild-eyed spenders are complaining and offering nothing positive or realistic in return."

"New Jerseyans are struggling with higher taxes, higher unemployment, and a higher cost of living than surrounding states," Sweeney said. "Whenever we have the opportunity to make the Garden State a little more affordable for the people we represent, we should take that opportunity. By rolling back tolls on the Parkway and Turnpike that were originally intended to fund the ARC tunnel project, we can alleviate a burden on New Jersey drivers and eliminate unnecessary toll increases."

The bill, S-2636, would direct the New Jersey Turnpike Authority to adopt a resolution to scale back toll increases on the Turnpike and Garden State Parkway that are no longer required for the financing or payment of the canceled tunnel.

In 2008, the authority approved a two-phase toll increase on the Turnpike and Parkway to raise $1.25 billion for the state's contribution to the tunnel project. The phased in toll increases were estimated to have increased the cost of an average trip on the Turnpike by 50 cents in 2008, with an additional 90 cent increase to be triggered in 2012. The added cost on drivers who take the Turnpike every day for work average out to $130 a year more in tolls under the 50-cent increase, and $235 a year in added tolls under the 90-cent increase.

Sweeney said. "When the two-tiered toll increase plan was instituted in 2008, the Turnpike Authority held town hall meetings with New Jersey residents to inform them of the added cost and benefits of the ARC tunnel. This legislation would require the Governor to make the same pitch to drivers and taxpayers, rather than a bait and switch which will extend the toll increase into the foreseeable future."

The bill has been assigned to Sacco's Transportation Committee.