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Does find it's a step in right direction
BY TOM HESTER SR.
NEWJERSEYNEWSROOM.COM
The director of New Jersey Future Friday described Gov. Chris Christie's proposed $8 billion five-year highway and mass transit improvement plan a step in the right direction, but is not a sustainable solution funding the financially-struggling state Transportation Trust Fund.
Peter Kasabach said, the proposal would move the state government away from excessive reliance on debt and back toward the 'pay-as-you-go' model on which the fund was founded.
"Importantly, it provides an increase in funding for NJ Transit, a critically important step in the wake of last year's fare hikes and service cuts," Kasabach said. "This immediate replenishment of the fund will enable many worthy projects to continue, and thousands of people to remain working in this time of high unemployment.
But Kasabach maintained that after five years, Christie's proposal would leave New Jerseyans burdened with a higher level of debt than they face today.
"A safe and reliable transportation system is critical to New Jersey's future prosperity, and the system should be funded from a stable and sustainable funding source," Kasabach said. "When it was created, the Transportation Trust Fund was intended to be that source. Over the years, however, the fund has been systematically mismanaged, overloaded with debt, and brought repeatedly to the brink of bankruptcy."Kasabach also noted, "It also relies on sources of funding that may or may not be forthcoming; for example, it anticipates tapping the Port Authority of New York and New Jersey for more money than the bi-state agency may be willing to direct to New Jersey projects."
The plan, which has been criticized by Democratic legislative leaders, consists of cash contributions from the state's general fund, money remaining from the canceled Hudson commuter rail tunnel project, and the New Jersey Turnpike Authority, bonding and $1.8 billion in projects. The governor wants the Port Authority to handle in conjunction with the state Department of Transportation. Funding of New Jersey-based projects would need the approval of the new Democratic governor of New York Andrew Cuomo.
Christie maintains that as a result, the state will be able to provide $1.6 billion each year for five years for what the governor said are much-needed transportation projects throughout New Jersey, including $672 million for NJ Transit projects and $200 million per year for local government projects.
Critics of the plan argue that $3.6 billion of the money will be borrowed, with an additional $2.6 billion added to the state's current debt.
"While we recognize the fiscal limitations facing the state, we believe it is essential that the governor and Legislature develop a plan for a fiscally sustainable solution to the Trust Fund," Kasabach said.
"Equally important, we must start thinking not only about how we finance our state's ongoing transportation needs, but how we plan, manage and operate our entire transportation system.
"Instead of focusing on the amount of money that is spent each year, we should instead focus on outcomes: fixing our deficient bridges, improving safety, reducing commute times, increasing transit ridership, decreasing carbon emissions and using transportation investments to encourage smart growth," Kasabach said. "These should be the goals by which our transportation system is measured.
