CORZINE ANNOUNCES PLAN TO REFORM, REPLENISH & GROW TRANSPORTATION TRUST FUND

$1.6 Billion Annual Capital Program Spurs Economic Growth, Ensures Mobility

TRENTON – Governor Jon S. Corzine today unveiled a plan to replenish and grow the Transportation Trust Fund (TTF) through a combination of financial and structural reforms that will provide the State’s transportation system with a robust capital plan to keep the economy moving forward.
“While we will work to build consensus on the ultimate fix for the TTF, I have a responsibility to ensure its ongoing viability and grow the State’s economy,� said Governor Corzine. “This five-year plan replenishes the Transportation Trust Fund, provides a substantial transportation capital program, and contains important reforms that begin to correct widely recognized financial deficiencies in the Fund’s structure.�

The plan contains recommendations that will enhance fiscal responsibility and public accountability, including freezing the level of TTF funds used for capital maintenance projects, and establishing an independent policy oversight board that will ensure compliance with strict guidelines for capital expenditures. The plan will also support 100,000 jobs, advance critically needed highway and transit repairs and capacity expansion projects, and begin key TTF reforms that have been endorsed by transportation policy experts.

The proposed plan creates a robust capital program of $1.6 billion annually over five years that advances critical highway and transit projects. Revenue sources for the program include the restructuring of a quarter of the State’s transportation bonds – about $1.8 billion of existing bonds. By extending their average life from 7.8 to 15 years, the State saves $105 million annually from reduced debt service that will be used to replenish the TTF.

New net revenue enhancements will also come from TTF reforms including dedicating the final 1.5 cents of the existing 10.5-cent gas tax, which historically was diverted to the general fund. That action alone will generate $78 million annually. Additionally, another $12 million will be gained by redirecting half of the unrealized, but already dedicated, toll road revenue.

The program provides $925 million annually for NJDOT to repair and rehabilitate deteriorating infrastructure, preserve critical safety projects, and increase local aid to municipalities by $25 million annually. The program also provides $675 million a year to NJ TRANSIT to fund repair work for infrastructure and rolling stock, as well as to advance projects of regional significance including The Trans Hudson Express Tunnel Project.

“This plan will provide the capital investment in our State’s transportation network that is fundamental to a growing economy,� said Acting Commissioner of Transportation Kris Kolluri. “I look forward to working with our legislative leaders to enact this plan as soon as possible so that our residents can spend more time with their families and less time in traffic.�

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