Governor’s Toll Road Plan Under Heavy Fire

By: Michael M. Shapiro

Governor Corzine’s plan to use toll hikes to pay down the State debt has come under heavy fire in recent days. A few weeks ago, it looked more likely to pass than not, with many Democrats in the Legislature expressing support and the endorsement of the pro-business Chambers of Commerce. However, this past week, all 17 Republican State Senators and all 32 Republican Assemblymen signaled that they would oppose the plan. Since the Democrats have a majority in both Legislative houses, the Republican opposition was not a deal-breaker. However, State Senator John Adler, a prominent Democrat who is running for Congress, announced his opposition, as well. In addition, a group of environmental and transportation groups declared their rejection of the Governor’s plan as long as it continues to include widening some major roadways. Suddenly, the asset monetization plan looks dead on arrival.

The toll hike plan calls for increasing tolls substantially over the next decade and using the money to pay down the State’s debt, establish a transportation trust fund, and widen several major roadways through the use of bonds. Paying down the debt is critical to the long-term future of our State. Interest on the State’s debt could cripple New Jersey’s economy in the coming years should it not be dealt with promptly. However, whether significantly increasing tolls to accomplish the task is the best way to go is questionable. Furthermore, if the State is in such massive debt, why does the Governor’s plan call for spending $4 billion (yes, with a “b”) to widen roadways? In addition, why does all of the pain for paying down New Jersey’s debt have to fall on drivers?

A possible solution would be a smaller and more incremental toll increase coupled with significant government spending cuts and no allocation for widening the major roads.  It might be suggested that the toll roads leading into and out of New York and Pennsylvania on the Jersey side be the only ones to be increased.  That would enable some of the State's debt to be paid by non-residents.  Those who do not wish to pay increased tolls can use other roads, thereby alleviating congestion in the most critical areas.  Such a plan would enable the paydown of the State's arrearage while forcing the government to live within its means and garnering the support of the environmental and transportation groups that currently oppose it.  In addition, the plan would likely find increased approval by residents of New Jersey.

The Governor should start considering such alternatives before any hope left for passage of a plan to pay down the State’s debt is gone.

Michael M. Shapiro, founder of ShapTalk.com, is an attorney who resides in New Providence, New Jersey. He currently serves as the Editor of The Alternative Press, www.thealternativepress.com Contact Mike at mike@shaptalk.com