Editorial: The New York Times

As states and cities look to their roadways to generate badly needed money, the state of New Jersey is offering an approach worth studying. Gov. Jon Corzine wants to shore up his state’s troubled finances by sharply raising tolls. If he gets his way, the cost of driving most of the turnpike could eventually rise from $5.85 to $48, providing money for both debt reduction and public transportation. The plan has potential pitfalls, but it may well be the best solution to a difficult problem.

New Jersey is drowning in $32 billion in debt, a legacy in large part of previous governors and legislators who approved generous public-employee contracts, and other costly programs, without paying for them. The state also faces critically important transportation needs, including widening the traffic-clogged New Jersey Turnpike. In a high-tax state like New Jersey, coming up with additional revenue is never easy.

Mr. Corzine has called for raising tolls by 50 percent every four years between 2010 and 2022. One mitigating factor for New Jersey residents is that about half of the turnpike’s drivers are from out of state. The average drive on the turnpike is only two or three exits and far cheaper than the full fare. There also may be discounts for low-income drivers and commuters who use the highways frequently. Still, it is a whopper of a toll increase.

New Jersey is hardly the only cash-starved jurisdiction to look on tolls as a possible salvation. Indiana and Chicago have leased some toll roads to private companies. Pennsylvania is considering such an arrangement, and California is scrambling to find revenue sources to repair its highways and bridges. Mr. Corzine is avoiding the mistakes of the worst of these plans.

Rather than handing the state’s roads to an unaccountable private entity, as Indiana did in a hugely controversial 75-year lease, he is proposing to turn the highways over to a highly regulated public corporation. It would sell $38 billion in bonds, which would be paid off by toll revenue. Almost half the money would pay down the state’s debt. The rest would go to transportation, including a large chunk for mass transit.

Mr. Corzine says the legislation, which has yet to be unveiled, would prohibit governors from meddling in operations or reducing the toll increases. These are necessary safeguards. The proposal also calls for a public oversight board — to be appointed by the governor, with input from the State Legislature.

The Legislature, controlled by Mr. Corzine’s fellow Democrats, will have to sign off. Legislators need to make sure that there are sufficient guarantees that the public corporation will work in the public interest. They should also work with Mr. Corzine on the other part of his proposal: putting in place measures to end the irresponsible spending that produced this financial mess.

The toll increases will hit many residents of New Jersey hard. But if the details of the plan come out right, including the protections for those least able to pay, they will be worth the pain, and New Jersey’s remedy could become a standard for other fiscally troubled states.

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