Business Group Opposes Toll Road Plan

February 4, 2008

By Scott Goldstein, NJBIZ Daily

The Commerce and Industry Association of New Jersey (CIANJ) today announced it's opposing Gov. Jon Corzine's fiscal restructuring plan to sharply raise highway tolls, pay down half of the state's $32 billion debt and fund transit projects for 75 years.

In a news release issued this morning, the group said it cannot support the plan because of the toll hikes' impact on "the cost of doing business in New Jersey."

Later in the news release, the Paramus-based group, which claims 900 small and large business members, said it supports some aspects of the governor's plan, including a spending freeze in the next state budget and requiring voter approval for borrowing that has no dedicated revenue source.

Overall, though, the governor's plan "would be devastating to the state's taxpayers," said John Galandak, CIANJ President. "New Jersey's budget has doubled in the past 10 years, and it is time for Trenton to make serious budget cuts rather than develop a fiscal scheme to ensure spending continues," he added.

The association's opposition comes five days after another business association, The New Jersey Chamber of Commerce, endorsed the plan under the condition that the governor takes specific cost-cutting steps outlined by the chamber. The chamber has taken heated criticism for supporting the plan from many Trenton Republicans.

CIANJ did not propose specific cost-cutting proposals, but said it will once the governor introduces a budget, which is expected as soon as next month.

The Corzine administration said in order to freeze the state budget next year—as it aims to do—there will need to be deep program cuts. "We recognize the budget faces serious strains, but those strains have been caused by spending and not inadequate revenue," Galandak said. "Before New Jersey's corporate and individual taxpayers can be asked to further fund the system, Trenton must reduce the amount of taxpayer money it spends."

Under Corzine’s restructuring plan, tolls on the New Jersey Turnpike, Garden State Parkway and the Atlantic City Expressway would rise 50 percent—plus inflation—every four years between 2010 and 2022, followed by inflationary increases every four years until about 2085. Additionally, a new toll would be placed on a small section of Route 440.

A new public benefit corporation would manage the roads and sell bonds that the toll increases would retire. The state would then use the lump sum of nearly $38 billion of new revenue from the bonds to cut in half the state's $32 billion debt burden and fund transportation projects for 75 years.