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AGC Urges Higher Gas Tax for NJ

Wed February 27, 2002 - Northeast Edition
Tracy Carbasho


The Associated General Contractors (AGC) of New Jersey has stated that an increase in the state’s gasoline tax would be the best way to fund long-overdue transportation projects.

“Improvements to our roads and highways will pay huge economic dividends to New Jersey, yet we have a great deal of trouble securing funding for the vital projects that are going to preserve and protect our livelihood and security,” said Michael Paquet, president of the Edison, NJ-based AGC. “With one in six roads in poor condition and scores of bridges needing immediate attention, we are simply running out of time to make strategic repairs before costly reconstruction of facilities will be required. A gas tax is simply the fairest and best alternative.”

Dick Forman, executive director of the AGC, said New Jersey’s gas tax is 10.5 cents per gallon, ranking as the third lowest in the nation. The only states that have a lower tax are Alaska at 8 cents and Georgia at 7.5 cents, based on the most recent figures available from the AGC.

Statistics from the New Jersey Policy Perspective, a group in Trenton that conducts research and analysis on issues facing the state, show that other states have taxes ranging from 13.1 percent in Florida to 30.7 percent in Pennsylvania with many states exceeding 20 cents per gallon.

“I think New Jersey needs to increase its tax to at least 25 or 30 cents in order to get the job done,” said Forman. “Since New Jersey is a corridor state, a lot of the gas tax is paid by people from other states. People from other areas come here because the gas is so cheap and they use our roads. That’s another reason why the investment makes sense for our state. We have a huge tourism industry that depends on people getting to the shores and mountains.”

Forman said the AGC has not engaged in direct talks with state legislators or with Gov. James E. McGreevey who took office in mid-January. However, he said the AGC and other trade unions throughout the state will embark on a public awareness campaign in the coming months to garner support in their effort to persuade lawmakers to hike the tax. The educational program will consist of publicizing the results of various transportation studies, holding press conferences, increasing the amount of advertising and urging newspapers to publish letters to the editor.

Press officials in McGreevey’s office did not return calls that were made by Construction Equipment Guide (CEG). Although early reports from the governor’s office indicated that he would take a stance of no new taxes, Forman said the AGC was encouraged when McGreevey later clarified that he meant no new sales or property taxes. He is optimistic the new administration views transportation projects as a top priority.

Information compiled by the The Road Information Program (TRIP), a non-profit research group based in Washington, D.C., shows that New Jersey has an extensive network of 35,921 mi. of public roads and 6,341 bridges which accommodate approximately 64 billion mi. of vehicle travel each year.

The TRIP findings reveal:

• Approximately one in six miles of New Jersey’s roads, or approximately 17 percent, are rated in poor condition, meaning they often have significant potholes, cracking or rutting and need resurfacing or reconditioning.

• Major roads in the state with poor pavement conditions include portions of State Route 40 in the Atlantic City area, Route 17 in Bergen County, Route 130 in Burlington and Camden counties, Route 440 in Jersey City, Route 7 in Newark and Route 22 in Union and Hillside townships.

• Driving on roads in poor and fair conditions costs New Jersey’s motorists $889 million per year in extra vehicle repairs and operating costs.

• Nearly four out of 10, or approximately 38 percent, of the state’s bridges are rated as either structurally deficient or functionally obsolete because they have deteriorated or do not meet current safety standards. A bridge is considered structurally deficient if there is major deterioration of the bridge deck, supports or other significant components. These bridges are often posted for lower weight or are closed if they are viewed as unsafe. Structures that are functionally obsolete no longer meet current highway design standards.

According to the TRIP report, New Jersey’s population is expected to climb another 1.4 million people to 9.5 million by 2025, reflecting a 17 percent increase. Likewise, vehicle miles traveled in the state are expected to increase 35 percent by 2025.

The Federal Highway Administration already considers 43 percent of New Jersey’s urban interstates and freeways to be congested because they carry more traffic than they were designed to handle. The average major road in the state carries 2.3 million vehicles per lane each year, ranking among the highest numbers in the nation behind Maryland, Hawaii and Delaware.

“Our transportation system is the busiest in the nation with a tremendously high traffic volume,” said John Dourgarian, spokesman for the New Jersey Department of Transportation (DOT). Some of our ramps — like Route 80 — has as much traffic as mainline Route 80 in the midwest. Our highest traffic volume is about 250,000 vehicles per day on Route 95 just before the George Washington Bridge.”

Dourgarian said the New Jersey Transportation Trust Fund, which has been in place for approximately 18 years, helps pay for state improvement projects. The $3.75-billion Trust Fund was renewed in 2000 for a four-year period.

“We believe we have a good transportation system, but there’s always room for improvement with anything,” said Dourgarian. Right now, we have 103 active construction projects valued at $1.5 billion that are taking place in New Jersey. We’re doing everything we can to keep our transportation system in good shape.”

Dourgarian said the DOT’s capital program for the current fiscal year, which will end on June 30, is $2.7 billion that represents a mixture of state and federal funding. He said about half of that amount will be used to pay for highway and bridge projects.

Forman pointed to projects that were outlined as necessary in the TRIP report.

They include:

• Improvements to Route 52 to increase access to Ocean City.

• Improvements to Route 4 in Bergen County, including a new pedestrian overpass.

• The replacement of a bridge on Route 30 in Camden County over a New Jersey Transit Atlantic City line.

• The widening of Route 21 in Newark.

• Safety improvements along Routes 1 and 9 in Middlesex County.

• A pedestrian tunnel, including improved access for the disabled, and a brick plaza and landscaped terraces at the ramp entranceway at Monmouth University.

Forman and Paquet believe an increase in the gas tax is the only way to have enough money to fund the work that must be done to make New Jersey’s roads and bridges safer for public transit.

“I believe the enhancement of the state’s transportation system is fundamental to the success of New Jersey’s economy and to maintaining the qualify of life for our people,” said Paquet. “The state of New Jersey needs a raise in the gas tax and it needs it now.”




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