Turnpike: Sale or Lease?
Sean Piotrowski| March 28, 2007 8:19 pm
Corzine says state won’t sell Turnpike
Wednesday, March 28, 2007
BY DEBORAH HOWLETT
Star-Ledger Staff
Gov. Jon Corzine yesterday ruled out selling the New Jersey Turnpike and insisted any lease of state assets to private operators must be structured in a way that ensures taxpayers will come out ahead.
“There will be no sale, I can as sure you of that, and any leasing will be under a very controlled basis,” Corzine said during a call-in program on the cable channel News 12 New Jersey. “We’re not giving away the shop. We’re not giving away the crown jewels.”
Corzine has proposed “monetiz ing” state assets, like the toll roads or the lottery, as a way to generate up-front cash payments from private operators or other sources.
The money would be used to pay down the state’s debt and fund capital projects, like road construction and open-space preservation, as well as other budget priorities for which there is currently no money. He has pledged that none of the windfall would go toward operational expenses.
The administration is studying exactly how it could accomplish those goals. Corzine said a proposal will be forthcoming in four to six weeks, and has declined to talk about specifics before “all the I’s are dotted and T’s are crossed.”
Corzine has said previously that he wasn’t ruling out any options, but in last night’s TV appearance he seemed to do just that.
“It’s monetization as opposed to privatization,” Corzine said.
One caller asked Corzine why the state couldn’t do as good a job running the Turnpike as a private firm, and by doing so reap all the financial benefit.
Corzine in response cited the Garden State Parkway and noted that it has had just one toll hike in its 55-year history. “I’m not sure we’re pricing it right for the marketplace,” he said.
Rather than simply giving up the toll road revenue to a private operator, Corzine said, the state would transfer the long-term operational costs to the operator and then take its share of the eventual proceeds in a lump sum. That would allow the state to save money on yearly debt service payments, he said.
“You can structure management of the asset in a way that ac crues to the benefit of the people of New Jersey,” Corzine said.
The governor also reiterated that he wants legislation banning lawmakers from holding other pub lic offices, saying, “I am intent on making sure this is actually accomplished before I sign the budget.” Corzine said earlier this month he had an agreement with legislative leaders that they would deliver a bill before the end-of-June budget deadline.
Deborah Howlett may be reached at (609) 989-0273 or dhowlett@star ledger.com.
Source: NJ.com
Anyone else think this is a terrible idea? I do.
