Dear Governor Christie:
As you know, New Jersey now can’t build one inch of new roads using gas tax revenues because every penny of income to New Jersey’s Transportation Trust Fund is legally committed to pay debt service on bonds and fund road maintenance. Toll increases on the N.J. Turnpike and Garden State Parkway have paid for road improvements around the state for the past few years. But that can’t go on forever.
I have a simple idea for saving New Jersey’s bankrupt Transportation Trust fund —> reduce the state gas tax by half a cent (14.5 cents – ½ cent = 14 cents) and index that 14 cents to inflation on the same day. Do the same for diesel (17.5 cents – ½ = 17 cents).
(Or, index the 14-cent gas tax to regional GDP, which ties annual increases to drivers’ ability to pay. GDP historically has grown at a faster rate than CPI).