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Other States Keep an Eye on Corzine's Uphill Trek
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By DAVID W. CHEN
Published: April 13, 2008
TRENTON -- In the old television commercial, the room would turn quiet
and all eyes and ears would shift to the man explaining what E. F.
Hutton would do.
Skip to next paragraph
Related
Toll Road Offers New Jersey a Fiscal Test Drive (April 13, 2008)
So it was when Jon S. Corzine, a former co-chairman of Goldman Sachs
who was elected governor of New Jersey largely on the strength of his
financial acumen, came up with a plan to erase much of the state's
staggering debt by shifting ownership of its toll roads and raising
billions of dollars from the sale of bonds.
And while New Jersey residents have for the moment turned their
attention from a proposed 800 percent increase in tolls to a punishing
state budget, from Tallahassee to Sacramento and from Austin to St.
Paul, people who are involved in government, transportation and public
finance are keeping a closer eye than usual on Trenton because of the
sweeping and unusual nature of Mr. Corzine's plan.
"We had some discussion in our caucus, and I'm aware of what they're
doing," said Bernard L. Lieder, a Democratic representative in
Minnesota who is chairman of his Legislature's transportation finance
committee.
Yet with the notable exception of a top Bush administration transit
official, not one legislator or transportation official of more than
two dozen interviewed from around the country was willing to endorse
Mr. Corzine's complex plan.
There was also a recurring theme: While Mr. Corzine made a selling
point of the fact that more than half of the revenue collected on the
turnpike came from out-of-state drivers, many of them commercial
truckers, other states saw that as a reason not to raise tolls
sharply.
"We think it punishes people for something they've already paid for,
and in his program, he's really going to punish the truckers," said
Frank J. Busalacchi, Wisconsin's transportation secretary.
Or as Jack L. Schenendorf, vice chairman of the bipartisan National
Surface Transportation Policy and Revenue Study Commission, which was
created by Congress in 2005, put it: "The idea of foisting costs on
the commercial sector to basically pay down New Jersey's debt is going
to hurt competitiveness."
Still, many officials said it would be foolish not to study Mr.
Corzine's plan closely for clues as what to do -- or what not to do --
in their own states.
"I'm really intrigued with Corzine's proposal because they really have
to do something in New Jersey, and people like me assume that Corzine,
especially with his background, realizes that," said Scott Pattison,
executive director of the National Association of State Budget
Officers. "One hopes that people really do step back and really
analyze this. It's too easy to say, 'I don't want to pay higher
tolls.' "
Under Mr. Corzine's proposal, New Jersey would set up a public benefit
corporation that would sell up to $38 billion in bonds backed by four
toll increases of at least 50 percent between 2010 and 2022 on the New
Jersey Turnpike, Garden State Parkway and Atlantic City Expressway.
The proceeds would go toward retiring half of the state's $32 billion
debt, and provide funds to maintain its roads and bridges.
In the more than three months since he introduced his plan and
traveled around the state to try to sell it, Mr. Corzine has
encountered stiff resistance from the public, Republican lawmakers and
even many of his fellow Democrats. Administration officials now say
they expect him to propose modifications in the next month or so.
Outside the metropolitan area, the reception has generally been less
hostile, though that could be because fewer than half of the states --
particularly those outside the Northeast -- have toll roads, while
others are reserving judgment and keeping track of various proposals
to raise much-needed revenue. For instance, Pennsylvania has said it
plans to make Interstate 80 a toll road.
"I think everyone is struggling with how you pay for infrastructure,"
Mr. Corzine said in an interview. "If we get to a restructuring of the
restructuring, I think there'll be more interest in how you both put
together a policy and the politics that will allow you to deal with
the real problems."
Some officials elsewhere -- particularly in fast-growing Southern
states like Texas and Florida, which sorely need new roads -- say they
are simply envious that New Jersey's tolls have been among the lowest
in the country.
"We've got three choices in this: no roads, slow roads and toll
roads," said Robert Black, a spokesman for Gov. Rick Perry of Texas.
"Tolls have to be part of the solution, whether it be this state or
any other state, simply because there is no other revenue stream out
there. So any kind of outside-the-box thing is welcome at this point
because you can't do things the way you have in the past."
At the same time, nearly everyone interviewed expressed concern about
Mr. Corzine's plans to dedicate roughly half the bond proceeds to
expenses other than transportation.
"I would disagree with using tolls as a source to generate revenue for
other things, especially if it's just to make up for a government
shortfall," said Carey L. Baker, a Republican in the Florida State
Senate who is chairman of its transportation committee.
At least Mr. Corzine is trying, said Joe Markosek, a Democratic
representative in Pennsylvania who is chairman of his chamber's
transportation committee.
"I think we're looking at it in terms of, 'He's trying to do the best
he can under a very, very difficult situation -- much worse than ours,'
" he said. "But he was Mr. Goldman Sachs."
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Past Coverage
Accident Changed Corzine, Not His Political Agenda (April 8,
2008)
MINE HILL JOURNAL; The Last Open Tract in a Township in Need of
Revenue (April 8, 2008)
Corzine Wants to Change Formula for Local Aid (March 28, 2008)
BUDGETS; Corzine Presses Towns To Combine Services (March 16,
2008)
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Corzine, Jon S Add Alert
Budgets and Budgeting Add Alert
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New Jersey Add Alert
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By DAVID W. CHEN
Published: April 13, 2008
TRENTON -- In the old television commercial, the room would turn quiet
and all eyes and ears would shift to the man explaining what E. F.
Hutton would do.
Skip to next paragraph
Related
Toll Road Offers New Jersey a Fiscal Test Drive (April 13, 2008)
So it was when Jon S. Corzine, a former co-chairman of Goldman Sachs
who was elected governor of New Jersey largely on the strength of his
financial acumen, came up with a plan to erase much of the state's
staggering debt by shifting ownership of its toll roads and raising
billions of dollars from the sale of bonds.
And while New Jersey residents have for the moment turned their
attention from a proposed 800 percent increase in tolls to a punishing
state budget, from Tallahassee to Sacramento and from Austin to St.
Paul, people who are involved in government, transportation and public
finance are keeping a closer eye than usual on Trenton because of the
sweeping and unusual nature of Mr. Corzine's plan.
"We had some discussion in our caucus, and I'm aware of what they're
doing," said Bernard L. Lieder, a Democratic representative in
Minnesota who is chairman of his Legislature's transportation finance
committee.
Yet with the notable exception of a top Bush administration transit
official, not one legislator or transportation official of more than
two dozen interviewed from around the country was willing to endorse
Mr. Corzine's complex plan.
There was also a recurring theme: While Mr. Corzine made a selling
point of the fact that more than half of the revenue collected on the
turnpike came from out-of-state drivers, many of them commercial
truckers, other states saw that as a reason not to raise tolls
sharply.
"We think it punishes people for something they've already paid for,
and in his program, he's really going to punish the truckers," said
Frank J. Busalacchi, Wisconsin's transportation secretary.
Or as Jack L. Schenendorf, vice chairman of the bipartisan National
Surface Transportation Policy and Revenue Study Commission, which was
created by Congress in 2005, put it: "The idea of foisting costs on
the commercial sector to basically pay down New Jersey's debt is going
to hurt competitiveness."
Still, many officials said it would be foolish not to study Mr.
Corzine's plan closely for clues as what to do -- or what not to do --
in their own states.
"I'm really intrigued with Corzine's proposal because they really have
to do something in New Jersey, and people like me assume that Corzine,
especially with his background, realizes that," said Scott Pattison,
executive director of the National Association of State Budget
Officers. "One hopes that people really do step back and really
analyze this. It's too easy to say, 'I don't want to pay higher
tolls.' "
Under Mr. Corzine's proposal, New Jersey would set up a public benefit
corporation that would sell up to $38 billion in bonds backed by four
toll increases of at least 50 percent between 2010 and 2022 on the New
Jersey Turnpike, Garden State Parkway and Atlantic City Expressway.
The proceeds would go toward retiring half of the state's $32 billion
debt, and provide funds to maintain its roads and bridges.
In the more than three months since he introduced his plan and
traveled around the state to try to sell it, Mr. Corzine has
encountered stiff resistance from the public, Republican lawmakers and
even many of his fellow Democrats. Administration officials now say
they expect him to propose modifications in the next month or so.
Outside the metropolitan area, the reception has generally been less
hostile, though that could be because fewer than half of the states --
particularly those outside the Northeast -- have toll roads, while
others are reserving judgment and keeping track of various proposals
to raise much-needed revenue. For instance, Pennsylvania has said it
plans to make Interstate 80 a toll road.
"I think everyone is struggling with how you pay for infrastructure,"
Mr. Corzine said in an interview. "If we get to a restructuring of the
restructuring, I think there'll be more interest in how you both put
together a policy and the politics that will allow you to deal with
the real problems."
Some officials elsewhere -- particularly in fast-growing Southern
states like Texas and Florida, which sorely need new roads -- say they
are simply envious that New Jersey's tolls have been among the lowest
in the country.
"We've got three choices in this: no roads, slow roads and toll
roads," said Robert Black, a spokesman for Gov. Rick Perry of Texas.
"Tolls have to be part of the solution, whether it be this state or
any other state, simply because there is no other revenue stream out
there. So any kind of outside-the-box thing is welcome at this point
because you can't do things the way you have in the past."
At the same time, nearly everyone interviewed expressed concern about
Mr. Corzine's plans to dedicate roughly half the bond proceeds to
expenses other than transportation.
"I would disagree with using tolls as a source to generate revenue for
other things, especially if it's just to make up for a government
shortfall," said Carey L. Baker, a Republican in the Florida State
Senate who is chairman of its transportation committee.
At least Mr. Corzine is trying, said Joe Markosek, a Democratic
representative in Pennsylvania who is chairman of his chamber's
transportation committee.
"I think we're looking at it in terms of, 'He's trying to do the best
he can under a very, very difficult situation -- much worse than ours,'
" he said. "But he was Mr. Goldman Sachs."
Next Article in New York Region (12 of 14) >>
Need to know more? 50% off home delivery of The Times.
Ads by Google what's this?
Budgeting
Budgeting list Guide to Budgeting
ShoppersChoice.org
2008 Volvo C30
Find Volvo selling below invoice with local cash-back offers
Volvo.LocalCarPrices.com
Forbes columnist provides
tools to help beat the market in Best Selling investing book.
www.Amazon.com/OnlyThreeQuestions
Tips
To find reference information about the words used in this article,
double-click on any word, phrase or name. A new window will open with
a dictionary definition or encyclopedia entry.
Past Coverage
Accident Changed Corzine, Not His Political Agenda (April 8,
2008)
MINE HILL JOURNAL; The Last Open Tract in a Township in Need of
Revenue (April 8, 2008)
Corzine Wants to Change Formula for Local Aid (March 28, 2008)
BUDGETS; Corzine Presses Towns To Combine Services (March 16,
2008)
Related Searches
Corzine, Jon S Add Alert
Budgets and Budgeting Add Alert
Tolls Add Alert
New Jersey Add Alert
Next Article in New York Region (12 of 14) >>
MOST POPULAR
E-Mailed
Blogged
Searched
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2. Munich Redux: Germany's Hot Spot of the Moment
3. Perfectly Legal Immigrants, Until They Applied for Citizenship
4. Can the Cellphone Help End Global Poverty?
5. David Brooks: The Great Forgetting
6. Frank Rich: The Petraeus-Crocker Show Gets the Hook
7. Fewer Options Open to Pay for Costs of College
8. 36 Hours in Chiang Mai, Thailand
9. Maureen Dowd: Standing by His Woman
10. Bob Herbert: Losing Our Will
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Class
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5. Opponents Call Obama 'Out of Touch'
6. Can the Cellphone Help End Global Poverty?
7. Great Expectations for a Conservative Group Seem All but Dashed
8. Yahoo, Weighing Options, Keeps Them Open
9. Iran Fighting Proxy War With U.S., Ambassador Says
10. The Great Forgetting
Go to Complete List >>
1. bush
2. china
3. obama
4. modern love
5. immigration
6. tibet
7. olympics
8. india
9. iraq
10. health
Go to Complete List >>
The New York Times Video
nytimes.com/video
A conversation with Howard Dean
Also in Video:
The hill grows steep for Clinton
The candidates address the Iraq War
McCain questions Petraeus
Advertisements
The blog that covers all things Oscar
In a world of second opinions, get the facts first.
NYC and beyond.
50% off Times delivery.
All the news that's fit to personalize.
Inside NYTimes.com