Express concerns about governor’s plans
By: Paul Koepp
Legislative candidates in the 14th District say it is too soon to judge Gov. Jon Corzine’s plan to squeeze money out of state assets like the New Jersey Turnpike because the details have not yet been announced.
However, they expressed concerns that the governor’s attempt to reduce the state’s $30 billion debt through "monetization" will be a one-time gimmick and that political motives could prevent a serious public debate about the plan.
The governor has not said when he will present the details of his plan, which may involve creating an independent public corporation to sell bonds that would be paid for by future toll revenues. His spokeswoman, Lilo Stainton, said Tuesday that although the topic would probably up during a town hall meeting in Essex County sometime in early August, the specifics of the proposal will not be ready by then.
Republican Assembly candidates Adam Bushman, of Jamesburg, and Hamilton Councilman Tom Goodwin have criticized Democratic Assemblywoman Linda Greenstein, of Plainsboro, for supporting a section of the state budget that provided funds to study the governor’s plan for the "monetization, sale, or lease of public assets."
Mr. Bushman and Mr. Goodwin said in a June 28 press release that Ms. Greenstein voted to keep the preparatory funding. Mr. Bushman said Tuesday that he thinks monetization of state assets is generally a "bad idea" since the Turnpike and the Garden State Parkway currently make a profit. Mr. Goodwin said the governor should outline his proposal "ASAP" and that until he does, no funding should be provided.
However, Ms. Greenstein said Tuesday that even some of the opponents of the governor’s plan supported the funding to study it.
She also said she is "completely on the same page with the governor" that state assets should not be sold or leased. Gov. Corzine vetoed the references to the "sale" or "lease" of state assets.
Ms. Greenstein said that while she is worried that the governor’s plan "sounds awfully like what (former Gov.) Christine Whitman did years ago with state pensions," the governor should get a chance to explain his proposal.
"We need to come up with a large amount of funds, and we haven’t been very successful at that in recent years," she said. "I’m starting out a little skeptical, but I’m confident that the governor has good instincts."
She said she wouldn’t want to see toll hikes and would not support them, but they may be inevitable, she said. Ms. Greenstein said she would prefer to charge out-of-state drivers a user fee before raising tolls for state residents.
Republican Assemblyman and Senate candidate Bill Baroni, of Hamilton, said there is no reason to raise tolls. He also said that selling bonds based on future toll revenues would be a "very dangerous thing" and that the state should proceed "extraordinarily carefully."
"At first blush, I don’t support what’s being talked about," he said. "My district should be especially concerned, because if you raise tolls, that will add more truck traffic and push more people on to free roads like Route 1."
Mr. Baroni also said that a measure to monetize toll roads in Indiana has been a "debacle."
His opponent for the state Senate seat being vacated by Sen. Peter Inverso, Seema Singh, of South Brunswick, said Tuesday that politicians should not come out against a plan that has not even been proposed yet.
"The governor is trying to reverse over 12 years of fiscal mismanagement by Republicans and Democrats that has created a growing hole in our state budget," she said. "I want to wait and see what he has in mind."
Ms. Singh said the state is spending $1.8 billion a year on debt service payments because the state has previously spent money it did not have. She said she would not support the sale or lease of toll roads to private or foreign investors. She also said that the state should keep operational control of the toll roads, that she would oppose any toll increases, and that any new capital spending should be subject to the approval of voters.

