A Rocky Road to Monetization

Posted by kheyboer July 05, 2007 11:30AM

Is selling, leasing or "monetizing" the New Jersey Turnpike the answer to the state's financial problems? That's the subject of today's Jersey Blogs column in The Star-Ledger.

Bloggers from CWA-Conservatives with Attitude, ShapTalk, Englighten-New Jersey and MoreMonmouthMusings are featured in this week's column. (As always, feel free to e-mail me if you want to suggest blogs or topics to include in future columns.)

And if you didn't see the opinion page of today's Star-Ledger, here's the Jersey Blogs column:

A rocky road to monetization
By Kelly Heyboer

As of now, there is no "For Sale" sign on the New Jersey Turnpike.

But there might be a "For Monetization" sign if Gov. Jon Corzine gets his way.

Last week, Corzine said he is considering a plan to "monetize" the state-owned toll road to help solve New Jersey's financial problems. He was short on details, but promised the plan would not involve selling the Turnpike or leasing it to any for-profit or foreign companies.

Republicans immediately denounced the Democratic governors still-sketchy idea, calling it "a secret plan" and "a Ponzi scheme." They are hoping public opposition to the proposal will help push Democratic candidates out of office this election season.

Meanwhile, the state's bloggers were weighing the pros and cons of "monetization."

From Hank Butehorn, blogging at From CWA- Conservatives With Attitude (http://www.gopusanj.com):

After years in the wilderness, the Republicans believe they have found their route back to power: the New Jersey Turnpike. They are convinced the public's revulsion to the idea of selling the toll road will cost Democrats dearly in November.

While Corzine's monetization fraud should be exposed and raised during the election cycle, something more is needed. Without putting forth a plan for resolving the state's fiscal mess the Democrats (aided by a media friendly to their agenda) could successfully label Republicans as obstructionist or just playing politics. And, Democrats can lessen the impact of this tact by (as many have) distancing themselves from the plan; not to mention how they will focus upon the increased property tax rebate checks that will be arriving in voter mailboxes shortly before election day.

Republicans must realize that it is insufficient to campaign against something; the people want something to vote for, not merely something to vote against.

Of course it is important to point out the socialist course the Democrats have set, and the harms to which that will lead; but, Republicans must also show they stand for something different . . . a different course . . . and they must tell the people what that is and why it will lead to a better future.

Steve Lonegan, Republican mayor of Bogota, blogging at ShapTalk.com (www.ShapTalk.com):

WARNING: Translation of Gov. Jon Corzine's complex statement of June 28 from Governmentaleeze to English. This document could cause taxpayer's nausea and vomiting. Consult your physician if side effects continue . . .

CORZINE: "I have a vision for a brighter New Jersey, but today we cannot afford the investments to make that vision a reality. I fundamentally believe we need new resources and renewed political courage to make those investments."

TRANSLATION: Grab on to your wallets. "New resources" means higher taxes and more massive debt. "Courage to invest?" Liberal buzz phrase for more spending on expanded government entitlement programs funded by job destroying taxes and massive debt issued without voter approval. The "vision" is that of a Utopian society where the government provides cradle to grave service, rendering the self sufficient American spirit a waste.

CORZINE: "My administration has been developing a new vehicle to achieve that goal."

TRANSLATION: To reach that Utopian Society and fulfill my childhood hero Dag Hammarskjold's vision of Socialism, the administration has been plotting and scheming the biggest and most convoluted borrowing plan in state history, the pawning off of our toll road revenue to fund a massive expansion of state government never before seen in U.S. history.

From Enlighten-New Jersey (http://enlightennj.blogspot.com/):

As Gov. Jon Corzine pushes forward with monetizing New Jersey's Turnpike and Parkway, he might look at an alternative-- wringing out the waste in the state's interstate highway system.

On a per-mile basis, New Jersey takes in the most from taxpayers and spends the most on state-administered roadways as compared to the other forty-nine states. Maintenance spending per mile is 8 times the national average and administrative costs 9 times. Total cost per mile in New Jersey is nearly 19 times the national average . . .

As the saying goes, a penny saved is a penny earned. There are hundreds of millions that could be saved and therefore, earned annually without monetizing New Jersey's toll roads. Perhaps someone could bring this to Governor Corzine's attention.

From Art Gallagher, blogging at MoreMonmouthMusings (http://moremonmouthmusings.blogspot.com):

"Monetize" is a euphemism for borrow money. Whether you call it a sale, lease or creating a new authority, the Governor wants to borrow billions of dollars today against the future toll receipts of the Garden State Parkway, the New Jersey Turnpike, and the Atlantic City Expressway. Toll increases would be a given. What is also a given is that if we borrow $15 billion today we'll end up paying back $30 billion over time and that the Governor's old Wall Street palls will make millions in fees for putting the deal together.

If you disagree with the Governor, you are a demagogue who is not serious about solving the state's fiscal problems, according to him.

The people of the State of New Jersey have made it very clear that we don't want to sell or lease our tolls roads. So the Governor says he will "go out side the box" to do the same thing. Well Governor, we don't want you to borrow billions more of our future incomes to dump down the Trenton black hole, no matter what box you wrap it in.

And, we do have a solution to the state's fiscal problems: Cut spending.

Categories: Jersey Blogs Column

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