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Fiscal Advisers Due to Weigh In on Selling New Jersey Turnpike

For months, Gov. Jon S. Corzine -- slipping now and then into the skin of the investment banker that he once was -- has talked about finding new ways to generate billions of dollars to help close New Jersey's growing budget deficits.

Next week, state officials may begin to take their first steps using some strategies from Mr. Corzine's Wall Street past to help shape New Jersey's financial future.

On Monday, a financial consulting company is expected to deliver several recommendations about whether New Jersey should sell off or lease some of the state's assets, including the New Jersey Turnpike.

The possibility of selling all or part of the turnpike, which has been discussed informally among lawmakers for years, is expected to be the most intriguing part of the report to state officials, who are also weighing the sale of naming rights for state properties.

At the state's behest, U.B.S. Financial Services has been examining New Jersey's assets for about a month, The Sunday Star-Ledger reported.

''We've asked U.B.S. to be imaginative and bold in their recommendations,'' said Thomas Vincz, a spokesman for the state treasurer, Bradley I. Abelow. ''We expect their recommendations to meet that criteria, and we're looking forward to reviewing their study.''

Besides suggesting whether the state should sell some assets, the U.B.S. is also expected to suggest how the money would be best used -- for instance, whether to pay down debt or to pay for capital projects.

''This is a complete study of state assets that could be monetized,'' Mr. Vincz said.

The 148-mile turnpike is considered the state's most valuable property.

In addition to the turnpike, other possible properties to sell or lease include the Garden State Parkway and the Atlantic City Expressway. Also under consideration is the selling of naming rights for rest stops on the toll roads, train stations and other properties.

In March, legislators stepped up what had been informal talks about selling the turnpike. State Senator Raymond J. Lesniak, an influential Democrat from Union County, introduced a bill calling for the New Jersey Turnpike Authority to sell 49 percent of the state's stake in the turnpike as well as the Garden State Parkway to investors. Mr. Lesniak estimated that the sale could raise as much as $6 billion.

Should the firm recommend the sale of the turnpike and the state follow through, New Jersey would join several other governments that have sold or leased toll roads. Perhaps the most notable example is the city of Chicago, which last year agreed to lease the Skyway for $1.8 billion.

Indiana signed a deal this year with the same company that is leasing the Skyway, a Spanish-Australian partnership. It will operate the Indiana Toll Road for the next 75 years. The company will keep all toll revenue, and in return will be responsible for maintenance, improvements and other operating costs.

 

 
 
 
 
 
 
 
 
 

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This Page Last Updated: Thursday November 15, 2007

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