SAVING THE TURNPIKE—NJPIRG Consumer Advocate Adam Garber talks on WJZ Channel 12 about the potential problems of Turnpike Privatization in New Jersey.

Evaluating Plans To “Monetize” Our Toll Roads

Talk of “monetizing” the Turnpike and Parkway heated up this summer, but as of this writing, the governor had not released his plans to cash-in the long-term revenue from these roads. NJPIRG used the summer to speak out against plans that would take control and revenue away from the public. While no final decisions have been made, the choice that the governor makes will affect our state for years to come.

Tough Questions
NJPIRG is concerned that the complexities of monetization and the lack of a transparent, accountable process will produce a deal that could hurt New Jersey far more than it helps. To make sure New Jerseyans can spot a bad deal if it’s announced, we’re asking the following questions.

1. Does the public control transportation policy and toll road management?
Public ownership isn’t the same as public control. The public must have a way to give substantive input, and to hold decision-makers accountable. The infamous Schools Construction Corporation (SCC) was a public company, but the public had no control. The SCC was opaque and unaccountable; it spent billions but didn’t’ get the job done.

2. Is New Jersey getting fair value for its tolls?
Fair value means that New Jersey isn’t giving up an unreasonably large amount of future toll revenues in exchange for getting some money up front. A large one-time revenue boost doesn’t guarantee fair value for the state.

3. How long is the deal?
Indiana and Chicago settled on lease deals of 75 and 99 years, respectively, for their roads. NJPIRG believes that these time frames don’t allow states to adjust to unpredictable changes in population, technology and funding; NJPIRG recommends 30 years as a more reasonable timeframe.

4. What will the safety, maintenance and operating standards be?
The Turnpike and Parkway have been international models of safety and maintenance, much as we may like to grumble about them. New Jersey should be able to maintain its state-of-the-art standards throughout a deal.

5. Where is the money going?
The last monetization the state undertook turned Tobacco Settlement’s many years of payments into a huge lump-sum payment; it was used to close a short-term budget gap, not fix our financial problems. Trading a short-term fix for our long-term income will only get us into more trouble.

6. Is the deal transparent, and are decision-makers accountable?
NJPIRG strongly believes the Legislature should hold an up-or-down vote on any final deal, and that all of the terms, contracts and subcontracts should be public, making it clear who the winners and losers are.