The New Jersey Senate has approved legislation (S-2020) sponsored by Senator James W. Holzapfel (R-10) and Senator Robert Singer (R-30) that authorizes the investment of $8 billion over five years in transportation infrastructure funding pursuant to Governor Christie’s Transportation Capital Program.
“The Governor’s transportation funding plan will allow us to continue critical investments in infrastructure without having to resort to a gas tax increase that people cannot afford,” said Holzapfel. “Unlike his predecessor who nearly bankrupted the Transportation Trust Fund, Governor Christie is working to reduce our reliance on borrowing and will transition transportation funding to a sustainable pay-as-you-go model over the proposed five-year plan.”
The legislation authorizes $1.6 billion per year for five years, gradually increasing “pay-as-you-go” financing as debt issuance is reduced. By the end of five years, the plan is funded by roughly equal parts cash financing, bonding, and funds provided by the Port Authority of New York and New Jersey.
“You can’t have a robust and sustainable transportation program that is capable of maintaining existing infrastructure and building needed improvements if all of your funding is dedicated to debt service payments on work that’s already been completed,” said Singer. “That’s why it’s so important that we enact the Governor’s plan to greatly reduce our reliance on new debt, ensure that job creating transportation projects can be funded, and prevent drivers from having to bear the burden of an unnecessary gas tax increase.”