ASSELTA ASKS RUTGERS TO STUDY IMPLICATIONS OF GOVERNOR’S SECRET TOLL ROAD SALE PLAN                             Senator Nicholas Asselta, (R-1), has sent a letter to the Alan M. Voorhees Transportation Center asking that they study the economic impact, land use ramifications, political governance, finance and social policy implications as it relates to the potential sale of the New Jersey Turnpike, Garden State Parkway and Atlantic City Expressway.  

            “There is a veil of secrecy surrounding the Trenton Democrat’s proposal to sell New Jersey’s toll roads. Given that the official policy of this administration is to make every effort to hide the facts from the electorate until after the November elections, I feel it is appropriate to call on the transportation experts at Rutgers to provide us with as many facts as possible so that the voters can make an informed decision on November 6th.  There is still time for the administration to come clean with the people of New Jersey and reveal the details of their covert effort to sell off our assets. For the people of this state, I hope they take advantage of this opportunity and release their plan to the public.

July 26, 2007

Dr. Daniel G. Chatman

Director, Alan M. Voorhees Transportation Center

Rutgers University

33 Livingston Avenue

New Brunswick, NJ 08901

Dear Dr. Chatman:

I respectfully request that your distinguished organization conduct a study of the economic impact, land use ramifications, political governance, finance and social policy implications of the potential sale, lease, or monetization of the New Jersey Turnpike, the Garden State Parkway, and the Atlantic City Expressway.

As you well know, Governor Corzine has been considering the sale, lease or monetization of toll roads held by the State of New Jersey, the New Jersey Turnpike Authority and/or the South Jersey Transportation Authority – possibly conveying them to a vaguely defined “public benefit corporation” that would be the successor entity to the aforementioned authorities.  This entity would then presumably issue bonds backed by future toll increases. 

As I look at the matter, it is clear to me that f this transaction comes to fruition, it would have a negative economic impact on the people of the State of New Jersey:

• Increased tolls would cause undue economic hardship for motorists and businesses in New Jersey.  For instance, the Atlantic City gaming industry – which is already contending with increased competition from the Pennsylvania and New York gaming industries – likely would see fewer patrons, because many would not be willing to pay the dramatically increased tolls necessary to pay back bondholders.

• Increased tolls would also force more and more motorists – including long-haul truckers and their big rigs – off the toll roads, and onto state and local roads. As more cars and heavy trucks use roads not designed to deal with heavy volume, wear and tear on the roads will increase dramatically – and that means higher maintenance costs. And how will local governments pay for those higher maintenance costs? With property tax increases.

Besides the negative economic implications of this possible sale, I am deeply concerned about the potential safety issues that elevating tolls would have on local roads.  As motorists and truckers move off the toll roads and onto the local roads – such as Route 1, Route 31, Route 202/206, Route 1-195 and I-295 – we would likely see more (and more deadly) accidents.

These are just some of the obvious economic and safety concerns raised by such a transaction. As I mentioned, there are other concerns as well – questions of land use policy, government finance, and even political governance themselves come to mind.

The Alan M. Voorhees Transportation Center (VTC) at Rutgers is known as a national leader in the research and development of innovative transportation policy – particularly those policies that, as declared in your mission statement, can best be described as “unconventional.” Dr. Chatham, when a Governor starts talking publicly about finding a way to “monetize” something as quintessentially New Jersey as the Turnpike and the Parkway, you’ve just defined “unconventional.” You and your organization could do your fellow New Jerseyans a world of good by conducting this much-needed study.

Thank you for your consideration of this request.

Very truly yours,

                                                                                    Nicholas Asselta

                                                                                    Senator, District 1