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DeCROCE: PROPOSED NEW JERSEY TURNPIKE SALE IS A RISKY SCHEME THAT MUST BE FULLY ANALYZED

MANY QUESTIONS SURROUND PROPOSAL AND, ONCE AGAIN, THE STATE CANNOT AFFORD TO RUSH INTO THIS PLAN

January 31, 2007
Assembly Republican Leader Alex DeCroce/973-984-0922
Assembly Republican Office/609-292-5339

Assembly Republican Leader Alex DeCroce expressed concerns about a proposal unveiled today by State Senator Raymond Lesniak to sell or lease the New Jersey Turnpike to private entities in an effort to generate a one-shot infusion of additional revenue for the state.

"There is a long list of legitimate questions that have been raised about this proposal ranging from its impact on state control of the road to its impact on motorists who travel the Turnpike," said DeCroce, R-Morris and Passaic. "We have seen in recent weeks the danger in rushing a proposal to a legislative vote without fully studying the implications, and we cannot afford for the Democrats to make that mistake again."

DeCroce, the former chairman of the Assembly Transportation Committee, said that he feared this is another attempt by the Democrats to grab a quick infusion of cash to help them plug a budget hole without thinking of the consequences.

DeCroce listed a series of concerns that have been expressed about the proposal including:

- The potential for the state to lose the authority to make critical transportation decisions related to the Turnpike, and hampering any efforts to implement effective transportation management strategies as congestion on our roads inevitably increases;
- Annual toll increases by the private owners. 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;
- The impact higher tolls might have on forcing more traffic, including trucks, onto local roads;
- Provisions allowing for state workers to be replaced by a workforce hired by the private entity after 6 years with no state control over the quality or training of the workers being hired -- a period of time, coincidentally, that would coincide with the end of Governor Corzine's second term.
- How would the revenue generated by any sale be utilized?

"While Senator Lesniak has attempted to address some of these concerns in his bill, we need to study the language and the legal requirements to determine if those provisions are sufficient," DeCroce said. "We need to have extensive public hearings on this proposal where the viewpoints of transportation experts, the financial industry, taxpayers, motorists and all of those who are stakeholders in this process can be heard."

"The Turnpike is one of our state's most valuable and important assets," DeCroce said. "The Turnpike's future is important to the future of our state and all of our citizens. We should consider any proposal to sell this asset very carefully."

"If the revenue generated by this sale is used up in this year's budget, it will become clear why Governor Corzine said yesterday that he does not want to guarantee property tax relief beyond this year," DeCroce said. "This will be a one-time revenue source that will leave us facing another structural deficit in the FY2009 budget -- dimming the hopes of sustainable property tax relief."

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