By Senator Steven V. Oroho
In the 1990’s state government in New Jersey off-loaded responsibility for paying for many of the things government does on to the shoulders of local government. It caused a dramatic surge in property taxes.
Now some in state government are advising that we do it again. This time it is our state’s transportation infrastructure. That’s right, the roads and bridges that carry our food from farms near and far, that provide us access to consumer goods (whether we drive to where they are or have them delivered), that commuters use every day to drive safely to and from work or school, that vacationers use to drive to the shore or to a state park or any of a number of entertainments. Safe roads and bridges are very basic to any place that hopes to call itself civilized.
But apparently some in state government would rather spend their time worrying about finding funding to promote pet political projects than on something we all need to have in a society worthy of the name. As the days tick away to the moment when the state doesn’t have a single dollar to fill a pothole or inspect a bridge, some in state government seem content to allow the responsibility for doing these things to roll onto the backs of property taxpayers.
Almost $300 million every year is sent from the Transportation Trust Fund (TTF) to local governments to repair and maintain the transportation infrastructure. This is about to disappear, and when it does, it will need to be replaced by local governments with a $300 million increase in property taxes. If the money isn’t replaced, and local governments willingly allow roads and bridges to become dangerous to use and if they fail to close them, the cost of the litigation resulting from avoidable tragedies will bankrupt some local governments or force property taxes even higher.
And this figure doesn’t take into account the money needed to repair all the roads and bridges currently maintained directly by the State. Imagine what it will be like when you can’t depend on major highways being passable from week to week? What will that do to inward investment, commerce, jobs, and the economy? We need leaders who are adult enough to tackle this problem before it gets out of hand.
But this crisis represents an opportunity too — if we are smart enough to take it.
We need to have an ongoing forensic examination of the cost of road and bridge construction in
New Jersey. Let’s find ways to do more for less. End the state’s raids on the TTF forever. Keep the money raised for transportation, dedicated to transportation. And then let’s support a revenue neutral way to find the money necessary to maintain our roads and bridges, while we cut taxes that generate revenue to the state’s general fund in order to shrink government and generate investment and jobs.
Having served as a financial officer for some of the top companies in America, I’ve been a numbers man all my life. From where I’m standing, the only way to avoid a massive property tax explosion is for the state to adopt a modest increase in the gas tax and then to tie that increase to tax cuts that generate investments and jobs.
New Jersey has the lowest gas tax in the region and the second lowest in the entire United States. One third of the revenue from the gas tax comes from non-residents passing through. To me our choice is simple: Either we pay 100% of the cost to maintain our roads and bridges through increased property taxes, or we pay 65% of the cost and let those out-of-state who use our roads pay for the rest through a modest gas tax increase. And this increase shouldn’t fall solely on consumers — big oil corporations should pay a share as well.
A modest gas tax increase, partially paid for by big oil, would still leave us with the lowest gas tax in the region and it would avoid the property tax explosion. Without a gas tax, we will end up paying $11 billion over the next 25 years to subsidize out-of-state drivers, and that is without any new road or bridge projects. Not one! As a conservative, I believe that a tax paid by those who use the roads (including those out-of-state) is fairer than a property tax increase to fund the repair and maintenance of roads and bridges.
Now for the tax cuts.
I want to see the tax on retirement income eliminated for most New Jerseyans. I am tired of hearing stories of how grandparents are forced to leave their families behind and move to more retirement-friendly states. We need tax reform that keeps families together.
I want to see the estate tax phased out. This tax is detrimental to the growth and creation of small businesses in the state and is an impediment to job creation.
I would also like to see a way for in-state commuters to get a chunk of what they pay in gas taxes back when they file their state income tax and a state income tax deduction for charitable donations. Taken together, these tax cuts will shrink government while increasing private sector economic activity and jobs to provide the long-term resources we need to meet our obligations.
These are my goals: Stop the property tax explosion that will come if the money runs out for road and bridge repair; fund the necessary maintenance of roads and bridges through a user tax that makes those out-of-state who use our roads pay their fair share; shrink government and grow the private sector and jobs to provide the resources to help the people of New Jersey.
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No to a gas tax increase. Cut spending.