Office of the Governor
Corzine announces plan to reform, replenish and grow Transportation Trust Fund
$1.6
Billion Annual Capital Program Spurs Economic Growth, Ensures
Mobility
(Trenton) - Governor Jon S. Corzine today unveiled a plan to replenish
and grow the Transportation Trust Fund (TTF) through a combination
of financial and structural reforms that will provide the State's
transportation system with a robust capital plan to keep the economy
moving forward.
"While
we will work to build consensus on the ultimate fix for the TTF,
I have a responsibility to ensure its ongoing viability and grow
the State's economy," said Governor Corzine. "This five-year
plan replenishes the Transportation Trust Fund, provides a substantial
transportation capital program, and contains important reforms
that begin to correct widely recognized financial deficiencies
in the Fund's structure."
The
plan contains recommendations that will enhance fiscal responsibility
and public accountability, including freezing the level of TTF
funds used for capital maintenance projects, and establishing
an independent policy oversight board that will ensure compliance
with strict guidelines for capital expenditures. The plan will
also support 100,000 jobs, advance critically needed highway and
transit repairs and capacity expansion projects, and begin key
TTF reforms that have been endorsed by transportation policy experts.
The
proposed plan creates a robust capital program of $1.6 billion
annually over five years that advances critical highway and transit
projects. Revenue sources for the program include the restructuring
of a quarter of the State's transportation bonds - about $1.8
billion of existing bonds. By extending their average life
from 7.8 to 15 years, the State saves $105 million annually from
reduced debt service that will be used to replenish the TTF.
New
net revenue enhancements will also come from TTF reforms including
dedicating the final 1.5 cents of the existing 10.5-cent gas tax,
which historically was diverted to the general fund. That
action alone will generate $78 million annually. Additionally,
another $12 million will be gained by redirecting half of the
unrealized, but already dedicated, toll road revenue.
The
program provides $925 million annually for NJDOT to repair and
rehabilitate deteriorating infrastructure, preserve critical safety
projects, and increase local aid to municipalities by $25 million
annually. The program also provides $675 million a year
to NJ TRANSIT to fund repair work for infrastructure and rolling
stock, as well as to advance projects of regional significance
including The Trans Hudson Express Tunnel Project.
"This
plan will provide the capital investment in our State's transportation
network that is fundamental to a growing economy," said Acting
Commissioner of Transportation Kris Kolluri. "I look forward to
working with our legislative leaders to enact this plan as soon
as possible so that our residents can spend more time with their
families and less time in traffic."
