On the Right Track?

by: mikeshapiro

Wed Jul 04, 2007 at 05:20:07 PM EDT

Although he has not yet formulated a proposal regarding the State's toll roads, Governor Corzine's recent announcement that he would not sell or lease them to a for-profit company or a foreign operator is a wise one. Residents of New Jersey generally opposed the sale or lease of the State's toll roads and the Governor's initial plans to study the issue raised Republican opposition. Given the beating Republicans have taken at the polls in recent elections in New Jersey, that Party views the sale or lease of the State's toll roads as an issue that could resonate with voters and cause them to seriously consider voting for change in Trenton this November. Corzine's announcement helps to blunt the impact of the Republican's use of this wedge issue. If the sale or lease of our toll roads to a for-profit corporation or foreign operation were to take place, what would it mean to our residents? What problems could arise?

mikeshapiro :: On the Right Track?

First, putting aside the Legislature's proclivity to spend even when the resources do not exist, would the Legislature institute adequate protections for our residents to ensure that the roads were well-maintained and that the tolls would not be unreasonably increased? Since the State government has difficulty maintaining New Jersey's toll roads now and the roads are currently under its control, is there any reason to believe they would be well-maintained if owned by a for-profit corporation or a foreign operator? Furthermore, since New Jersey has not been shy about boosting the costs of tolls, what would make anyone think that a for-profit corporation or foreign operator would be rigidly limited by that same government?

The lease or sale of New Jersey's toll roads to a for-profit corporation or foreign operator would raise serious concerns regarding consumer protection. The possibility of additional billions of dollars in the State's budget might not find its way to the intended coffer. The Governor's decision to refuse to sell or lease the roads to a for-profit corporation or a foreign operator is the right one at this time. Hopefully, his rejection of such a sale or lease is genuine and not an incumbent protection plan meant to assuage voters as we head towards the November election.

Tags: toll roads, republicans, Jon Corzine, Asset Monetization, toll, (All Tags)

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On the Right Track? | 2 comments

My two cents... (4.00 / 1)

I can remember several of candidate Corzine's quotes. One of my favorites being "New Jersey does not have a revenue problem, New Jersey has a spending problem." What happened to that guy? As I understand it, the impetus to 'monetize' comes from the gov's desire to spend more. It's my understanding that the plan is take whatever proceeds from this transaction to pay down state debt. This in turn, will free up revenue the state currently spends on debt service.
At the end of the day, we have the same level of taxes and services today, but with extra revenue left over. But the governor already has plans for this revenue. I would hope the governor recognizes that taxes in the state have reached crisis level and that no appreciable reform was accomplished during our special legislative session. It would be my hope that he extra revenue realized would not be collected and taxes would be subsequently lowered, but that does not seem to be the plan. The plan seems to be to increase spending and I can't support additional spending at this time.

"Where ever you go, there you are." - Buckaroo Bonzai

by: William Weber (WjcW) @ Thu Jul 05, 2007 at 00:55:08 AM UTC

Spending (0.00 / 0)

I couldn't agree more with you about the need for greater fiscal responsibility in New Jersey politics. If extra revenue becomes available, we should be saving it, ideally in a legal investment vehicle, with the idea of using it to eventually reduce taxes or having it set aside in case a crisis looms that requires an infusion of financial resources.

Our politicians need to learn that leadership is about making tough choices, including refusing to spend on every project that is suggested or bowing to every interest that wants a government subsidy. Our State's voters need to reward the politicians who make the difficult decisions that result in a more fiscally responsible government. We need to shun the politicians who spend our tax dollars on every proposal that lands on their desks in an effort to please everyone. Through reckless spending with the aim to be loved by all, they undermine the fiscal integrity of our State and the interests of all of our residents.

Michael M. Shapiro
www.TheAlternativePress.com

by: mikeshapiro @ Thu Jul 05, 2007 at 02:13:53 AM UTC