State Senator Andrew Ciesla

CIESLA UNVEILS ‘NO TAX’ TTF FIX
$700 Million in New Money without Higher Taxes

Senator Andrew Ciesla, (R-10), the ranking Republican member of the Senate Transportation Committee today unveiled a proposal which would resuscitate the ailing Transportation Trust Fund, (TTF), without raising any taxes.
Senator Andrew Ciesla, (R-10), the ranking Republican member of the Senate Transportation Committee today unveiled a proposal which would resuscitate the ailing Transportation Trust Fund, (TTF), without raising any taxes.
The TTF will run out of money next summer, leaving the state with no ability to pay for improvements to New Jersey’s transportation system. The new proposal will constitutionally dedicate 100 percent of the motor fuels taxes, redirect a portion of the revenues from the Motor Vehicle Commission (MVC), and commit 100 percent of the petroleum gross receipts tax to increase the TTF by almost $700 million with existing revenue.
“After years of abuse, the TTF will be bankrupt by the end of June 2006, we must take immediate steps to provide the stable long term funding needed to protect New Jersey’s transportation network,� Ciesla stated. “Drivers are already sending Trenton enough money to fully support the TTF. A gas tax hike can’t be justified when the Motor Vehicle Commission is charging drivers three times its cost of operations.�
“ Fuel taxes and motor vehicles fees should be used as they were intended, as user fees – so drivers would pay for the roads and bridges they use.�
There are two elements to the proposal. A constitutional amendment to dedicate additional revenues to the TTF and enabling legislation that would improve the fiscal integrity of the TTF.

The additional revenues would include:
∙ $170 million from the full dedication of the Motor Fuels Tax
∙ $50 million from the full dedication of the Petroleum Gross Receipts Tax
∙ $400-480 million in excess revenues collected by the MVC
Currently, $805 million is dedicated to the TTF from various sources. This new proposal will increase the total dedication to at least $1.4 billion.
“After years of fiscal mismanagement, the day of reckoning is upon us,� Ciesla said “Come July all revenue now dedicated to the TTF will be needed to pay the debt service on existing TTF bonds. This is a fiscally responsible proposal that will preserve the TTF for a generation. I would hope that the Governor and Legislature act on it during the lame duck session and it is passed in a bi-partisan manner,�
The constitutional amendment will dedicate all motor fuels tax revenues to the cost of funding the State transportation system. Currently, the State Constitution dedicates an amount equivalent to nine cents per gallon out of a tax of 10.5 cents on gasoline and nine cents per gallon out of a tax of 13.5 cents on diesel fuel. Additionally, the amendment would also constitutionally dedicate all revenues from the petroleum products gross receipts tax, which is currently dedicated at a minimum amount of $200 million.
Lastly, the amendment earmarks the amount equal to the motor vehicle fee and surcharge revenues collected by the Motor Vehicle Commission that are greater than the cost of administering the commission to funding the State’s transportation system.
“It’s a dirty little secret of state government that the MVC makes a profit and it is our contention that all money collected from motorists should be used to maintain and upgrade our transportation system,� Ciesla said. “The state has regularly levied stealth taxes on drivers, raising fees and surcharges with the sole purpose of increasing general state revenues.�
The companion legislation would take the initial steps toward restoring the fiscal integrity of the TTF, largely by requiring that "pay-as- you-go" projects constitute at least half of its spending. Increasing amounts of the fund's revenues have been needed to pay off bonds, the TTF is now more than $7 billion in debt, rather than paying for transportation construction projects.
The bill also would, after a six-year transitionary period, bar using TTF funds to pay the operating expenses and salaries of the Department of Transportation and the New Jersey Transit Corporation.