Lance Challenges Kolluri To Demonstrate Toll Revenues Can Be Used For The Trans-Hudson Tunnel

Lance Challenges Kolluri To Demonstrate Toll Revenues Can Be Used For The Trans-Hudson Tunnel

In a letter sent today, Senate Republican Budget Officer Leonard Lance asked the Commissioner of the Department of Transportation, Kris Kolluri, to explain why toll revenues can be diverted to pay for the new Trans-Hudson rail tunnel. A copy of the letter is attached

"It is questionable whether the Commissioner of Transportation can substantiate his claims that the Turnpike Authority is 'clearly within its legal authority' and that the 'enabling statute gives the Board discretion to invest in' this project," Lance stated. "If the Corzine administration had a legal opinion authorizing the diversion of these monies to a non-highway project it would almost certainly have released it by now."

"The Corzine Administration's position doesn't hold up when viewed under the clear language of the enabling statute. The statute N.J.S.A. 27:23-5(g), clearly states:

In the exercise of its powers, by resolution to fix and revise from time to time and charge and collect tolls, fees, licenses, rents, concession charges, and other charges for each transportation project or any part thereof constructed or acquired by it. No toll revenue derived from the New Jersey Turnpike or Garden State Parkway shall be used or available for any transportation project other than a highway project and all transportation projects other than highway projects shall be self sustaining: provided however that such toll revenues may be used to finance or support the costs of non-highway transportation projects on an interim basis according to such terms, with or without interest, as the authority shall establish. (Emphasis added)

"I ask Commissioner Kolluri to provide an explanation as to why this passage authorizes the diversion of funds to the tunnel project," Lance concluded.
October 9, 2008

Chairman Kris Kolluri

New Jersey Turnpike Authority

Administration Building

581 Main Street

P.O. Box 5042

Woodbridge, NJ 07095

Dear Chairman Kolluri:

I received a copy of your October 7, 2008 letter to Governor Corzine regarding the Turnpike Authority's revised toll increase plan. I am encouraged that the Governor has recognized that New Jersey's depressed economic and business conditions cannot sustain the Turnpike Authority's initial ambitious plans to impose such a large new tax on residents and visitors to the State.

I am disappointed, however, to read that the Turnpike Authority will continue with its plan to use toll revenue to fund the mass transit tunnel project. Republican legislators have raised significant concerns that the Authority's enabling statute does not support the use of these revenue sources for this purpose. The Trans-Hudson tunnel is a vital component in modernizing and expanding New Jersey's transportation infrastructure, but it is essential that its funding be legal and sustainable.

Your letter indicates that the Authority is "clearly within its legal authority" to contribute toll revenue to the mass transit tunnel project and that the "enabling statute gives the Board discretion to invest in" this project. As the Authority continues to advance this project, it is critical to the success of the project that legislators understand your analysis and reasoning in this regard.

Accordingly, I respectfully request your analysis of the Turnpike's enabling law, with references to specific statutory provisions and language that gives the Turnpike the ability to use toll revenue for the tunnel project. If more than one statutory provision is relevant, I would like to understand the interplay between the provisions that support your legal conclusions. Additionally, I would like your analysis in light of Transportation Commissioner Lettiere's testimony before the Assembly Appropriations Committee in 2003 that "toll revenue would not be diverted to other projects off the main lines of" the Turnpike and Parkway and that such revenue would be used only for the "operating proper roadways of both." These legal conclusions are vital to the sustainability of the project and the State's ability to provide funding.

I appreciate your attention to this matter.

Sincerely,

Leonard Lance

For more information visit www.senatenj.com