Assemblyman John S. Wisniewski

WISNIEWSKI MEASURE TO REVITALIZE TRANSPORTATION TRUST FUND ADVANCES

(TRENTON) - Legislation Assembly Deputy Speaker John S. Wisniewski sponsored to refinance the Transportation Trust Fund's (TTF) debt and extend its lifespan by an additional five years was released from an Assembly committee today.

FOR RELEASE:
March 9, 2006

CONTACT:
Assemblyman Wisniewski
(732) 316-1885
James Sverapa IV
(609) 292-7065

WISNIEWSKI MEASURE TO REVITALIZE TRANSPORTATION TRUST FUND ADVANCES

(TRENTON) - Legislation Assembly Deputy Speaker John S. Wisniewski sponsored to refinance the Transportation Trust Fund's (TTF) debt and extend its lifespan by an additional five years was released from an Assembly committee today.

Unless the Legislature acts, as of July 1, all of the revenue currently collected for the TTF will be used to pay off existing TTF debt - roughly $805 million a year. This would leave no money to fund capital improvement projects or to perform infrastructure maintenance.

"In just over three months, the Transportation Trust Fund will run dry," said Wisniewski (D-Middlesex), chair of the Assembly Transportation and Public Works Committee. "If that were allowed to happen, our economy and the safety of our commuters would be placed in jeopardy."

The Wisniewski measure, (A-2813) would reform the "Transportation Trust Fund Authority Act" in nine key respects:

- Increase the annual TTF debt limit from $650 million to $1.6 billion for five years only;

- Constitutionally dedicate all of New Jersey's current 10.5 cent gas tax to the TTF, increasing dedicated revenue by $78 million annually;

- Increase the minimum amount of local transportation aid by $25 million, from $150 to $175 million;

- Create a Financial Policy Review Board, consisting of five people with expertise in transportation finance and policy, which would assure fiscal discipline and prepare annual certifications of TTF financing and expenditures;

- Limit major highway expansions using TTF funds through smart growth initiatives;

- Prohibit the use of TTF funds for certain costs, including emergency response operations and review of applications for access permits;

- Maintain a pay as you go element in all five years of the plan to ensure that some projects are financed using existing resources and no year relies wholly on borrowed revenue;

- Require that any future increases in the $895 million dedicated revenue be used solely to reduce the annual bond limit, increasing the pay-as-you-go portion of that year; and

- Freeze TTF funding of permitted maintenance at the fiscal year (FY) 2006 levels.

Wisniewski noted that several of the bill's reform measures came from recommendations he had proposed in the past.

"This plan allows us to continue current capital projects and ongoing repairs to our transportation infrastructure," said Wisniewski. "It includes many long-sought TTF reform elements while providing us a five-year framework in which to hammer out a lasting funding solution. It may not be a perfect plan, but compared to the alternatives of losing federal matching dollars and allowing our roads, bridges and railways to fall into disrepair, its merits far outweigh any drawbacks."

The State Department of Transportation estimates that New Jersey's current transportation network requires a minimum of $1.2 billion annually to maintain existing infrastructure and to maximize federal matching dollars.

According to Assemblyman Wisniewski, the plan would provide sufficient funding for capital improvement programs, ensuring New Jersey receives the maximum amount of federal matching funds.

"Like refinancing your mortgage to make needed improvements to your home, this TTF refinancing will allow capital improvements and repairs to continue without jeopardizing the safety and integrity of our transportation infrastructure," said Wisniewski. "At the same time, it gives us the space necessary to search for and craft long-term, permanent solutions to our transportation funding system."

On Monday, the Senate Budget and Appropriations Committee heard identical legislation (S-1470), which was approved, with amendments, 13-1-1.

The Assembly Transportation and Public Works Committee released the measure 8-3-1. It now heads to the Assembly Appropriations Committee for further review.

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