Assemblyman Declan O’Scanlon criticized the proposed fee increases requested by the Motor Vehicle Commission (MVC) recently as another example of the state borrowing from one pot to fill another that eventually is paid for by the taxpayer. The MVC has proposed increases on things such as motorcycle registrations, boat ownership certificates and driver history abstracts. Costs increases will range from between 50 percent to 650 percent of the existing level. The rate hikes are projected to raise anywhere from $40 million to $60 million annually.
“The state annually raids the revenue pocket of the MVC and allocates those monies into the General Fund, and now an increase is proposed to help Motor Vehicles sustain its operation,” stated O’Scanlon, R-Monmouth and Mercer. “There is something wrong with that picture that makes people cynical about how the state operates.
“The revenues generated by the MVC are enough for it to sustain itself. But with the government taking a cut of their proceeds and diverting it to areas such as the Division of Revenue within the Treasury Department there is a shortfall to run the commission. With the governor proposing a $10 million cut from the MVC budget it is no wonder fee increases are being requested. Ultimately, the beleaguered New Jersey residents end up paying.”
O’Scanlon was referring to the fact that the state’s fiscal year 2009 budget redirects a portion of the fees collected by the MVC to other departments and agencies within government. Approximately $15 million is diverted to other areas and over $5 million is taken from the Commercial Vehicle Enforcement Fund to help balance the Department of Transportation’s maintenance and operations costs. The administration is also proposing to transfer over $1.5 million in license plate administrative fees to the state’s General Fund.
“The public should not accept another example of the administration’s fiscal shell game,” continued O’Scanlon. “New Jersey residents don’t care whether it’s a tax, a fee, or a toll increase – or whatever the Governor calls the increased burden on citizens, or however he tries to justify or parse it – all these government costs come out of the same pockets. Ours. And we can’t afford to pay more.”
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April 14, 2009
