N.J. Toll Road Leases Disputed

TRENTON, N.J. — Urging patience and caution, Gov. Jon S. Corzine's top money man encouraged New Jersey residents Monday to wait for a plan before opposing ways to earn big bucks off state properties such as the New Jersey Turnpike.

Treasurer Bradley Abelow's plea came as Assembly legislators debated ways to make it difficult for Corzine to lease the Turnpike and Garden State Parkway to a private company. To do so could earn billions, which the governor wants to use to pay down debt and free money for other state needs.

"We remain mystified at the timing and view this as folks trying to be pre-emptive and create an environment where it's impossible to talk about this issue, and frankly I'm surprised by that and I view it as irresponsible," Abelow said.

Corzine hasn't proposed a toll road lease, but when the governor discussed his budget proposal Thursday he warned that such moves may be necessary if the state is to invest in public school construction, open space preservation, health care and other needs.

Abelow said he hopes to make a recommendation to Corzine on how to proceed within four to six weeks.

"We are working really hard in trying to address, in a thoughtful and careful and deliberate fashion, something that is extraordinarily complex," he said.

Lawmakers discussed other alternatives Monday, such as borrowing against future toll collections, an option one lawyer said could earn the state $1.2 billion if it increased tolls 15 percent over the next 15 years.

"You could raise a lot of money here very quickly," said Peter Humphreys, a New York City attorney whose firm has worked on similar borrowing with private companies.

Abelow discounted the estimate, saying he wasn't sure how it could be calculated, but said borrowing against future toll collections is an option the state has weighed.

The Assembly Transportation Committee Monday discussed legislation that would:

• Prohibit the New Jersey Turnpike Authority, which also operates the Garden State Parkway, from contracting with a private company to operate highways.

• Require voters to approve the sale or lease of any state asset worth more than $100 million. Legislators have estimated the Turnpike and Parkway could bring $15 billion through a 75-year lease.

• Ban the state from leasing and selling transportation facilities to foreign companies. A Spanish-Australian consortium leased toll roads in Indiana and Chicago.

Assemblyman John Wisniewski, the committee chairman, opposes leasing toll roads and said legislators have a right to examine the issue.

"There needs to be a full discussion," said Wisniewski, D-Middlesex.

Wisniewski invited Abelow and Transportation Kris Kolluri to testify before the committee Monday, but both declined. Wisniewski declared that "an affront to the committee, an affront to the legislators here and an affront to the Legislature as a whole."

But Abelow and Kolluri said debate will take place and said New Jersey won't propose anything similar to agreements in Chicago and Indiana that have concerned New Jersey lawmakers. Chicago will get $1.83 billion for a 99-year lease. Indiana will get $3.85 billion for a 75-year lease. Tolls will increase regularly for both.

"It perplexes me that they've assumed the worst of every single deal that's ever been in place and attribute that to what we're trying to do," Kolluri said. "It's factually inaccurate and some would say naive."

Added Abelow, "And maybe even insulting."

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