Corzine's Monetization Plan Details Emerge

my reaction (4.00 / 1)

Toll increases like this are absolutely necessary if you want to somehow extract $15 Billion from drivers.  I thought this was obvious from looking at the Turnpike Authority numbers, and even a Wall Street genius sees the same. 

That said, it is total madness to think the people of New Jersey are going to pay these kinds of tolls in perpertuity when in the rest of the country roads are supported without tolls, rather than roads somehow paying for the cost of government.  It also guarantees that there will never be any more highways in New Jersey, even if the population needs them, since there will be a non-compete clause, and indeed I wonder if a new rail system would even be allowed. 

If Corzine has a need for money now, he should raise tolls now, and face election on what he has or hasn't accomplished with the money.  If a future governor finds that tolls should be higher or lower, he or she should have that power.  I am 100% against politicians getting money now, by taxing the future and having the nerve to pass laws saying what the future government can't do with the money the present politicians took.  (Pensions, by the way, are supposed to be funded with money set aside in the present by employers and employees.) 

As for Roberts, since he shut down the government to stop the last sales tax increase from actually helping the state government's budget, I don't think he has any credibility in now saying there is a crisis. 

Frank LoBiondo Record and Jon Runyan Watch

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by: Hopeful @ Thu Nov 22, 2007 at 06:25:00 AM UTC

Tripled Tolls in Seven Years? (4.00 / 1)

Even if we pass a NEW constitutional amendment to prevent new "authority" debt without voter approval, do you really think people are going to go for tripling of tolls without something tangible in return.  It would have been much smarter to have used a toll increase (instead of more debt) to revitalize the Transportation Trust Fund a year ago.

A lot of the debt is uncallable so it cannot be redeemed early (thanks John Whitman!)  I wonder how much of the debt is related to transportation.  Paying that off with tolls wouldn't be the worst idea and then bringing in new money to fund improvements without increasing the gas tax might be workable.

But, this has the potential to get VERY ugly on a bunch of fronts.

On THAT uplifting note, I need to run because we're cooking the turkey for the family Thanksgiving this year.  Have a happy one everybody!

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by: Creed Pogue @ Thu Nov 22, 2007 at 14:57:31 PM UTC

this only works if... (0.00 / 0)

...EZ-Pass transponders can be programmed in such a way that NJ residents who have EZ-Pass are given deep discounts (50% or more) compared to non-residents (EZPass subcribers and non-EZ-Pass and residents who are not EZ-Pass subscribers.

Mind you, these discounts would obviously cut into the efficacy of this plan, but so be it.  The state cannot balance its books on the backs of drivers.

The most obvious solution to this problem is to increase income taxes progressively and significantly and dedicate these income tax increases towards funding most if not all education expenses so that property taxpayers can get a break, balancing the budget, and paying down the debt as quickly as possibly in that order of priority.

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by: Bertin Lefkovic @ Fri Nov 23, 2007 at 05:24:33 AM UTC