Skip to comments.For Sale .... The New Jersey Turnpike?
Posted on 03/24/2006 5:34:34 AM PST by Calpernia
State Senator Ray Lesniak thinks allowing the New Jersey Turnpike Authority to sell off a portion of the state's toll roads would produce a huge windfall and annual savings for years to some. He doesn't, however think any potential cash from the sale should be used to stave off Governor Jon Corzine's one-cent state sales tax proposal.
A bill Lesniak is set to introduce a bill that would, "allow the sale of 49% of the Turnpike Authority retaining control for the State of New Jersey." The Senator claims financial experts have told him that by doing so the state will be, "raising $6 billion so that we could shore up our pension and earn hundreds of millions of dollars a year in revenue because we eliminated that (pension fund) deficit."
"Because we control interest," says Lesniak, "we could ensure that there will no toll hikes above the rate of inflation (and) that toll roads are properly maintained." He calls his legislation, "A win-win-win."
Lesniak is adamant that any funds raised should not be used to take the Governor's sales tax increase plans off the table, "I think that's a mistake and would be fiscally irresponsible because this is a one-shot revenue."
The measure can't be formally introduced until the State Senate's next quorum call and that doesn't happen until May. Lesniak says, "Even after the introduction, we're looking at about a year before this could actually happen."
"If we sell an interest in the Turnpike," says GOP State Senator Leonard Lance, "we would have to distribute preferred stock and financial analysis indicates that type of preferred stock is considered a form of borrowing." Lance has twice succeeded in lawsuits against democratic administrations to block borrowing without voter approval.
Lance says, "If we sell 49% of the toll roads, 49% of the tolls will be used to pay those who purchased these bonds and we will no longer have these revenues to help fund the toll roads." If the state controls just 51% of the toll roads, is there a guarantee that the 49% of public stockholders would be willing to spend to maintain the roads? Lance says, "There would have to be a contract with the private sector and I'm sure that would be open to negotiation and I am very skeptical of that as well."
A one shot deal for cash that they will spend by the end of the week.
Oh... I see... those parts of the government are and already have been up for sale for many years now...
Their PENSIONS. Other states recognize their multi dip pensions as criminal.
Ping to a great tagline (post 4)
Too bad Tony S is in the ICU...
Who is in ICU??
Hungry? Eat the seed corn. Idiots.
Maybe the United Arab Emirates would be interested?
What is worse, NJ is the state that tried to sue to block the Port debacle. Now they want to sell infrastructure? All the companies I looked up that buy infrastructure are foreign owned.
Pesky little truths getting in the way of Corslime's scamming of the voters.
Does the UAE know about this?
Every article I read said our taxes won't go down (this is not to replace the tax increase). So what portion of our taxes pay for the turnpike and where will that go?
::I know, rhetorical::
I damn near had a heart attack.
Frith, we pay for the turnpike, right? It is ours?
Therefore, under eminent domain, shouldn't the fair value of the sale go to US? NOT the pension fund?
"would be fiscally irresponsible." Oh, no, please not in New Jersey.
This reminds me of our friends to the north, who I believe sold the toll roads around Toronto to the Europeans who immeadiately jacked the price of tolls up dramatically. When the citizens complained about the price increase, they were told that under EU rules, the owners were free to charge what ever they pleased.
As with the ports deal, I am all for free markets, but can someone explain, why if we are one of the greatest nations in the world with technology and managements skills which have created the highest standard of living on the globe, do we have to have our ports and highways managed by a third world nation. Sorry but this makes no g-d-damn sense whatsoever.
The Teacher's Union know about this yet??
I have a better idea; sell the schools!
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