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BECK: TURNPIKE SALE IS A BAD DEAL FOR NEW JERSEY

HOPES PITFALLS IN THE PLAN WILL BE EXPOSED BY EXTENSIVE TRANSPORTATION COMMITTEE HEARINGS ON THE MATTER

February 5, 2007
Assemblywoman Jennifer Beck/732-772-1571
Assembly Republican Office/609-292-5339

Assemblywoman Jennifer Beck today said that all New Jersey residents should be very concerned about a proposal unveiled this week by Senator Raymond Lesniak -- backed by the Corzine administration -- to sell or lease the New Jersey Turnpike to a private entity.

"This is a decision that the residents of New Jersey will have to live with for the rest of this century, and I think when all the facts are placed on the table we will see that this is a bad deal for our residents," said Beck, R-Monmouth and Mercer. "Any proposal that concerns the future of such a critical state asset should be thoroughly examined by the Legislature, and I think the more we learn about this deal the worse it will look for our state."

Beck has called for the Assembly Transportation Committee, of which she is a member, to hold hearings on the issue. Lesniak's plan has already drawn opposition from some members of his own party.

"Anyone who has to balance a budget at home knows that if you're borrowing money to add onto your house or start a business, that’s one thing; if you're borrowing money to buy groceries or to pay your electric bill, that's a recipe for disaster," Beck said. "That is exactly what the Turnpike lease scheme is: Borrowing money to pay current expenses, and a recipe for disaster."

Beck noted that while the sale could provide a short-term infusion of cash for the budget, the state will likely lose the authority to make critical transportation decisions related to the Turnpike, including hampering any efforts to implement effective transportation management strategies as congestion on our roads inevitably increases.

When a similar scheme was implemented in Indiana, the private owner who leased Route 80 was permitted to boost tolls by 70 percent through 2011 -- and by the rate of inflation beyond that. Lesniak's proposal would cap toll increases, but none-the-less permit the new owners to implement them annually.

"When you examine the impact this deal will have and the state's finances, tolls, transportation management strategies, traffic on local roads, it looks very unattractive," Beck said. "The lure of this sale's ability to generate quick cash to plug a budget hole might look good to the administration right now, but it should not be done to the long-term detriment of New Jersey residents."

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