By proposing to abolish Garden State Parkway tolls, Governor McGreevey has badly muddied the waters around his transportation commission’s recommendation to raise New Jersey’s gas tax to boost investment in transportation infrastructure.

McGreevey flirted heavily with Parkway toll abolition during his election campaign (MTR #’s 308, #329), saying he would eliminate tolls "without burdening taxpayers." But ultimately, he settled on a Parkway plan that is now replacing main-line toll plazas with open road facilities that electronically collect tolls from cars traveling at normal highway speeds. The plan may ultimately also reduce the overall number of highway collection points.

However, less-than-enthusiastic reaction to the gas tax increase by some legislators and newspapers, coupled with a political eye on the 2005 gubernatorial race, led McGreevey in short order to chain the gas tax hike to toll removal. A bill expected to be introduced in Trenton will reportedly contain provisions for both the gas tax increase and elimination of Parkway tolls. The tolls are not mentioned as an issue in the blue ribbon commission report on New Jersey’s transportation needs.

If enacted and carried out, the end of Parkway tolls will severely impair the gas tax increase’s effectiveness as a boost to transportation in New Jersey. Estimates of how much general transportation revenue the Parkway would require if deprived of toll income vary, but it is likely in the range of 5-6 cents worth of gas tax proceeds, or close to half of what the state would raise from a 12.5-cent gas tax increase. Toll foes say the rate is only three cents on the tax, but dividing a penny of gas tax revenue (using the state’s figures) into annual Parkway revenues makes it at least four cents, without taking into account other factors like outstanding Parkway debt and contracts with E-ZPass vendors.

Miles driven on the Garden State Parkway account for about 9% of total New Jersey vehicle-miles. If state legislators consider the matter rationally, they will need to ask whether bailing out relatively few drivers — not all of whom are NJ residents — is worth one-third to one-half or more of the revenue they will raise. A tax hike itself would seem to be politically wrenching enough without devoting much of it to a small group.

It’s not clear what the constituency is for toll abolition. The legislature as a whole has not pressed for it. A small grassroots campaign lobbied for it during the last governor’s race, but it has not struck a chord as a major statewide concern. The development of open road toll facilities by NJ’s toll road agency would make the issue largely moot as time goes on.

Governor McGreevey no doubt has visions of himself sledge-hammering toll booths during the 2005 campaign season. That may not give him a great political boost if voters across the state, including many who do not regularly use the Parkway, realize they are paying heavily for the governor’s photo-op. It also could rebound against him if environmentalists, transportation groups, the construction industry and taxpayer groups label the move as idiotic every time it is publicly discussed over the next two years.

MTR back issues:

Go to index of all Mobilizing the Region back issues