Privatizing
toll roads such as the New Jersey Turnpike and Atlantic City Expressway
could lead to steady toll increases, block upgrades on other roads and
compromise the state's ability to change with the times, citizen and
environmental groups argued Tuesday.
Gov.
Jon Corzine's administration is now looking at several state assets as
candidates for possible private/public deals, which supporters say
could raise billions of dollars to pay down the state's debt and free
up money for other purposes such as sustaining property tax relief
efforts.
A
spokesman for the Treasury Department said the groups' concerns would
be considered as his department works to issue recommendations by early
next year.
The
New Jersey Public Interest Research Group (NJPIRG), New Jersey Sierra
Club and other groups raised concerns that a private company would
operate the toll roads for profit, not the public, pointing to recent
deals that privatized the Indiana Toll Road and the Chicago Skyway in
Illinois.
Abigail
Field, legislative advocate with NJPIRG, said immediate toll increases
followed the deals in Indiana and Chicago, while future increases were
written into the contract.
The
decades-long length of such lease agreements, 75 years in Indiana and
99 years in Chicago, also poses a problem, the groups said, raising
doubts about whether provisions in those contracts concerning key
issues like maintenance would age well.
A
report commissioned by the state and released last month said the
Turnpike, Expressway, the Garden State Parkway, New Jersey Lottery, and
development rights at New Jersey Transit train stations were all
commercially viable options for public/public deals.
Other scenarios like newly tolled roads and naming rights were also recommended for further consideration.
The
report did not recommend specific sales, leases or other arrangements,
which the state now plans to formulate. Recommendations are expected in
about five months.
"Our
guiding principle is to uphold the highest standards for safety, health
and security that transportation users and taxpayers have come to
expect and deserve," said Treasury Spokesman Tom Vincz.
The
union representing about 1,500 Expressway and Parkway workers is also
speaking out about the proposed sale or lease of the toll roads. Len
Schiro, spokesman for IFPTE Local 196, said in Indiana, all of the toll
and maintenance jobs were privatized. He could not say how a sale or
lease would impact his union members in New Jersey.
State
Sen. Stephen Sweeney, D-3, of West Deptford, said lawmakers realize
that the devil would be in the details of any lease agreement.
"Structured properly, I think that we'd be fine," Sweeney said.
Senate Minority Leader Leonard Lance, R-Hunterdon/Warren counties, said he generally does not favor the sale of state assets.
"We do not want the public gouged in any way, traditionally that's why these have remained state assets," Lance said.
The resulting funds of any sale or lease should only be used to pay down debt, Lance added.
