Mobilizing the Region
Issue 247 December 3, 1999


Senate President Unwraps NJ Trust Fund Plan


New Jersey State Senate President and 2001 gubernatorial hopeful Donald DiFrancesco yesterday proposed a four-year state transportation finance package that diverts revenues from existing taxes to transportation capital programs.

DiFrancesco's plan would harness transportation-related revenue sources like the Petroleum Products Gross Receipts Tax and the sales tax on new motor vehicles that now flow into the state's general fund. DiFrancesco would devote these to the Transportation Trust Fund, along with the small portion of the state gas tax that still supports the general fund. The plan proposes no new revenue sources. It would provide about $1 billion in state funding for transportation projects per year, up from $900 million in recent years. Current transportation revenue sources will be consumed by debt repayment by mid-2000.

Governor Whitman told reporters yesterday she was concerned about how much money the plan would drain from programs supported by the general fund, like education and health care. Voters would have to approve the dedication of general fund taxes to the Trust Fund.

Policy elements of the DiFrancesco plan that have emerged so far are provisions for adoption of high-tech traffic signal technologies, vague language about transportation project consistency with the NJ State Plan, incentives for transit- and tele-commuting, funding for task forces to implement fast relief of traffic bottlenecks, and some expansion of funding eligibility for bike, pedestrian and ferry projects. Senator DiFrancesco calls his proposal the "Congestion Relief and Transportation Trust Fund Renewal Act of 2000."

It's unclear what the Senator's views on congestion, road capacity and highway construction are, though his proposal and release mentioned the urgency of reducing sprawl development.

The Tri-State Transportation Campaign told reporters yesterday that DiFrancesco should spell out in more detail what he proposes to spend the money on. The transportation bond act that NJ voters approved last month enjoyed backing from a wide variety of constituencies precisely because NJ DOT had clearly identified the projects that the new money would support.

"NJ DOT said bond act funds would support bridge and road maintenance, mass transit and rail freight projects, but not highway expansion. That proved a winning combination with the public. State leaders would do well to put Trust Fund reauthorization on a similar track," said the Campaign's Kristen Fountain.


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