Issue 506

July 25, 2005

Putting the Trust Back in Trust Fund The Regional Plan Association report released July 11th in association with the Tri-State Transportation Campaign, AAA, and  Voorhes Transportation Institute   (see MTR #505) identifies a set of major reforms the state of New Jersey must enact to revitalize the state’s Transportation Trust Fund: ¨ Fully fund NJ DOT and NJ TRANSIT operating budgets and eliminate capital-to-operating transfers, ending the practice of raiding construction and maintenance budgets to pay for day-to-day operating expenses. ¨ Constitutionally dedicate all originally intended resources to the Trust Fund, ending leakage to the general fund and guaranteeing that transportation funds are used for transportation projects. ¨ Restore a reasonable level of borrowing capacity to transportation finance by limiting bond maturities to ten years until fiscal stability is restored. ¨ 6 month reports by the Division of Taxation to clarify amounts collected from fuel taxes and other transportation-related revenue sources. ¨ Create an independent financial policy review committee to provide accountability and oversight. The report warns against looking to one revenue stream to be the “silver bullet” to fix New Jersey’s transportation finances.

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