Feb 11, 2008 4:10 pm US/Eastern
Gas Tax, Alternatives To Corzine Toll Hike Weighed
TRENTON, N.J. (AP) ―
Democratic senators on Monday said increasing the state's gas tax and cutting state spending could ease Gov. Jon S. Corzine's proposed highway toll increases.
With opposition building to toll increases unveiled on Jan. 8, alternatives are being weighed by lawmakers.
The governor wants to pay off at least half of $32 billion in state debt and fund transportation for 75 years.
To do that, Corzine wants to increase tolls 50 percent in 2010, 2014, 2018 and 2022. The increases would include inflation adjustments and, after 2022, tolls would increase every four years until 2085 to reflect inflation.
Sen. Raymond Lesniak, D-Union, said the 2022 increase could be eliminated by increasing the state's 14.5 cents per gallon gas tax by 10 cents now and five cents in 2013. Doing so, he told The Associated Press, would allow the state to pay for transportation work for decades.
New Jersey has the nation's third lowest gas tax. The average state gas tax is 23.6 cents per gallon.
Senate President Richard J. Codey, D-Essex, told AP that gas tax increase of about five cents would be more doable, if the plan included discounts for frequent toll road users.
"If you come down on the toll increases, you could do a very minimal increase in the gas tax, maybe some other things," Codey said. "But we got to obviously limit spending. We've got to show some cuts first. These are all factors that will play into the final scenario."
Codey wants 20 percent discounts for those who spend more than $200 per month in tolls and use E-ZPass.
Lesniak also said the state should immediately boost tolls by 50 percent -- rather than 50 percent in 2010 -- to pay for widening toll roads and fixing bridges on them, two key needs often cited by Corzine that Lesniak thinks the public would accept.
"I don't think anyone is going to oppose alleviating congestion, and certainly no one is going to oppose making our bridges safe," Lesniak said.
In addition to the toll increase, Corzine also plans to control state finances by freezing spending in the coming budget and restricting future spending and state borrowing. The spending freeze, Corzine said, will mean $2.5 billion in "very harsh" budget cuts this year.
Corzine's plan is expected to save the state about $1 billion per year, so Lesniak said if legislators want to avoid toll increases, they'll have to cut the budget by that amount -- on top of the $2.5 billion in cuts already promised by Corzine.
"There's going to be some serious objection," Lesniak said. Those objections, Lesniak said, will make legislators rethink Corzine's plan, which has been rejected by all 49 legislative Republicans and several Democrats.
Senate Budget Chairwoman Barbara Buono, D-Middlesex, said the focus must be on spending.
"The dialogue has to be about give-and-take, and by that I mean there has to be a willingness on the part of the administration to be flexible and compromise, and I think that's where it's heading," Buono said.
Corzine has dropped plans to add tolls to Route 440 in Middlesex County, but has said state debt must be halved and reliable transportation funding provided; the state is set to run out of
road, bridge and mass transit money in 2011.
Corzine said a 20 percent income tax increase, 30 percent sales tax increase and 50 cent gas tax increase could accomplish his goals, but with the burden on New Jerseyans.
"The reason we actually went with the plan that I suggested was that if you raise income taxes or you raise the gas tax, primarily it will be paid by New Jerseyans," Corzine said.
About half of New Jersey Turnpike drivers are from out-of-state. Codey ruled out income and sales tax increases.
"If there's going to be any kind of gas tax increase, it would be a minimal one, maybe five cents, six," Codey said, adding that further increase could be tied to inflation.
He said the money could be dedicated to state transportation work. "You can take care of that forever," Codey said.
Codey has also proposed looking into leasing the state lottery to a private company.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
Top Secret: Military Jets
Click to enlarge
Massive Stroller Recall Expected Tuesday 48 mins ago 
Stumble It!
