A gas tax referendum may be on the table, and a smaller transportation capital plan is on the way, NJDOT Commissioner Jim Simpson said during a heated State Senate Budget Committee hearing last Thursday. Though the hearing was ostensibly on NJDOT’s and NJ Transit’s fiscal 2011 budgets, senators spent the bulk of it grilling the commissioner on how the state plans to reauthorize the Transportation Trust Fund, the main source of funding for state transportation projects, before it runs out of money in June of next year.

Simpson outlined some possible cost savings and sources of transportation revenue, including raising tolls for out-of-state E-ZPass users, streamlining procurement, increasing use of public-private partnerships, better prioritizing capital plan projects, increasing federal funding, and leasing rest stops throughout the state. The Christie administration believes it can save $40-$100 million from efficiencies at the NJ Turnpike Authority.

But these measures, most of which did not come with revenue projections, may amount to using an eyedropper to fill a bucket. Committee Chairman Paul Sarlo (D-Bergen), who cited Governor Christie’s refusal to raise revenue by increasing the state gas tax, was skeptical. “The math doesn’t add up,” said Sarlo. “You need $895 million, and I don’t see how you get there with efficiencies. You need a major funding solution.” ($895 million is the amount the Trust Fund received from the gas tax and other sources last year.)

“I respectfully disagree,” replied Simpson.  But when pressed specifically on the prospect of a motor fuels tax increase, Commissioner Simpson seemed to foreshadow a referendum as envisioned by the Christie transition team. “You will not see this administration put a gas tax on the table. If you like the gas tax, if the voters like the gas tax, then that’s a different story,” he said. After Senator Sarlo then questioned public support for such a measure, Simpson cited the recent Monmouth University poll, commissioned by TSTC and NJ Future, which showed voters split about 50/50 on the issue.

Simpson said a more comprehensive solution will be unveiled in six to eight months, and that stakeholders will play a major role in its creation.

Smaller Capital Plan Is Previewed

Also under scrutiny was the fiscal year 2011 transportation capital plan. A draft one-year plan has been sent to legislators and metropolitan planning organizations for review, but has not been released publicly. The Commissioner did reveal that the Trust Fund will pay for $1.43 billion of projects in this year’s capital plan, suggesting the plan will be about 10% smaller than last year’s (the Trust Fund paid for $1.6 billion of last year’s $3.6 billion program). Simpson criticized what he said was the state’s habit of building road and transit projects that it cannot afford to operate and maintain, describing that mindset as “The window is broken, the roof leaks, but we’re going to build an extension on the house because the family might grow.” NJDOT will not release a 10-year strategic plan this year as it usually does, he said, saying such a “wish list” was unrealistic in the current fiscal climate.

He also repeatedly expressed interest in bus rapid transit, citing it as convenient and a more cost-effective way of bringing transit to underserved areas.  When asked by Senator Mike Doherty (R-Warren) which transit modes provide the best return on investment, Simpson responded that NJ needs to stop choosing the solution before the problem is analyzed and that “the days of ‘if you build it, they will come’ are over.” He specifically called out the proposed PATCO expansion in Gloucester County, a project strongly supported by Senate President Steve Sweeney, saying, “we can’t put in light rail at $1.6 billion when a $350 million BRT project will do it.”