BUILDING THE FUTURE FOUNDATION SUPPORTERS TESTIFY IN FAVOR OF A4011/S2931
BUILDING THE FUTURE FOUNDATION SUPPORTERS TESTIFY IN FAVOR OF A4011/S2931
TRENTON – Building the Future Foundation supporters testified in favor of A4011/S2931 today before the Assembly Transportation and Independent Authorities Committee. The legislation would reauthorize funding for the Transportation Trust Fund for another five years.
“Without a Transportation Trust Fund making consistent investments, none of us could get to our jobs, our children’s schools, the shore, or to any of our state parks. New Jersey’s entire economy is wholly dependent on having a first-class transportation network,” said Steve Gardner, Director of the New Jersey Laborers’ Employers’ Cooperation and Education Trust.
New Jersey State Chamber of Commerce President and CEO Tom Bracken told the committee, “There is no better investment New Jersey can make, at all, than in our infrastructure. Our infrastructure is the foundation of our economy and has always been that way. Every citizen in our state and every business in our state, every day, accesses our infrastructure without exception. So, our infrastructure needs to be safe, it needs to be efficient, and we need to continue to reinvest in it.”
“Due to a number of factors, the revenue generated under our existing tax schedule is not sufficient to support our TTF program going forward,” noted Ryan Sharpe, Director of Government Affairs at the Utility and Transportation Contractors Association of New Jersey (UTCA). This bill addresses that shortfall by imposing a minimum increase in the gas tax and imposing a reasonable surcharge on the purchase of electric vehicles (EVs) that ensures EV drivers are paying their fair share to support our transportation needs.”
“The TTFA was originally established in 1984 to establish a dedicated source of revenue for our State’s transportation system. It was designed to make funding for these critical investments impervious to the whims of the annual budget and not subject to General Fund balances. There is as much logic behind that today as there was in 1984,” testified Joe Fiordaliso, President of the American Council of Engineering Companies of New Jersey.
Full testimony submitted by LiUNA, UTCA and the American Council of Engineering Companies of New Jersey is included below.
Today’s testimony comes as Building the Future Foundation announced it launched a six-figure paid media campaign to support passage of A4011/S2931. Building the Future Foundation also released a study from the American Road & Transportation Builders Association (ARTBA) showing the numerous economic benefits of an annual $2.3 billion highway and bridge capital investment plan. The full ARTBA report can be viewed here.
Steven Gardner, Director – New Jersey Laborers’ Employers’ Cooperation and Education Trust
Mr. Chairman, members of the committee, I am Steven Gardner, Director of the New Jersey Laborers’ Employers’ Cooperation and Education Trust, a Labor – Management Fund that represents the over 20,000 men and women of the Laborers International Union of North America that live and work in New Jersey as well as the signatory contractors that employ them.
On behalf of our members and our contractors I am here today to support the renewal of New Jersey’s Transportation Trust Fund.
I want to thank Speaker Coughlin and Chairman Calabrese for your leadership on this issue.
During testimony today, you are going to hear a lot about the Transportation Trust Fund, what it does, how it’s funded.
What I want you to understand is that this issue is personal.
It is personal to the handful of men and women in orange shirts who took the day off from their regular job of working on New Jersey’s roads and bridges to be here.
They are a small, but important sample of our members who dedicate their careers to working on projects to improve New Jersey’s infrastructure.
If you drove here today, if you took the train to the Trenton Train Station, the people behind me and thousands more just like them, worked to ensure you could get here.
Renewing the Trust Fund for them isn’t about a job, it’s about creating middle class careers that allow them to live, work and raise their families in New Jersey.
It’s personal to everyone in this room.
Without a Transportation Trust Fund making consistent investments, none of us could get to our jobs, our children’s schools, the shore, or to any of our state parks.
New Jersey’s entire economy is wholly dependent on having a first-class transportation network.
It’s personal to me.
I have worked on transportation issues for almost my entire professional life.
I have been blessed with the privilege of representing the members of the Laborers Union and our contractors and giving a voice to them in these hallowed halls.
It also means I have heard almost every argument, gimmick, and excuse as to why doing something so simple as nudging the gas tax rate is so politically problematic.
So, let me address a few of them.
First, let’s all remember in 2016 after 28 years of kicking the can down the road we finally ran out of duct tape and paperclips and shut down the Trust Fund because it was broke.
Work on every road, bridge and tunnel stopped, bringing New Jersey and its economy to a standstill.
Some history – In the 28 years between gas tax increases, gas prices rose from a national average of about 90 cents a gallon to over 2 dollars a gallon.
New Jersey and the Trust Fund did not receive one additional cent from the increased price of gasoline: we gave it all away to the folks who sell gasoline.
For 28 years we treated raising the gas tax as a third rail of politics: we cannot make that same mistake again.
This bill calls for a modest 1.9 cent increase annually for 5 years.
We can all put on our political hats, like we’ve done so many times, or we can look at the facts.
According to AAA the average price of gas in New Jersey today, my birthday no less, is $3.19.
Last week it was $3.16, and last month it was $3.13.
So, its risen 3 cents in a week and 6 cents in a month.
That monthly increase is more than the first three years of increases in this bill.
But wait, there’s more.
After the Treasurer adjusted New Jersey’s gas tax upward by almost a penny last year, would you be surprised if I told you that we’re paying 7 cents LESS for a gallon of gas than we paid last year?
You shouldn’t be surprised.
And even after our 23-cent gas tax increase in 2016, and the adjustments that have been made over the last 8 years, our gas prices are still below the national average.
Asking for tax offsets and expressing mock indignation over a minor adjustment to the gas tax to ensure New Jersey continues to make necessary investments is just a political ploy and should be called out for what it is. Gas prices will rise and fall in just this year by an amount greater than is contemplated by this bill in a 5-year period.
One of the novel features of the 2016 bill was to include a true-up mechanism to ensure that the gas tax could deliver the revenues needed and be adjusted upward or downward to account for falling short or exceeding projections.
Some have argued we should just let that mechanism raise the gas tax to meet our needs.
Let’s be clear, the true-up was never intended to be the way to raise the gas tax – that power solely rests with this Legislature.
More importantly, as a fund that relies on both pay -as-you-go cash and debt to fund our investments, bondholders and rating agencies need some level of certainty that New Jersey will continue to make the necessary annual investments.
This legislation accomplishes that goal in two ways, first it clearly articulates the size of the capital program over the next 5 years, growing the program size in years 3, 4 and 5.
And it clearly identifies how New Jersey will pay for that level of program size, giving everyone interested a level of certainty.
A level of certainty the true-up mechanism could neither provide nor was designed to provide.
One reason the true-up mechanism was originally contemplated is that as cars were starting to become more fuel efficient, there was a concern that overall consumption might decrease, reducing gas tax revenues.
Over the last 8 years New Jersey has had years where consumption exceeded expectations and the gas tax was reduced, and other years when it had to be increased to meet projections – so it worked.
Now, with Governor Murphy’s prohibition of the sale of gas cars starting in 2035, the transition to zero emission vehicles is on in New Jersey.
And the true-up mechanism cannot be the only way to capture the necessary revenue.
The gas tax has always been a user fee, it’s the small price we all pay to invest in our infrastructure.
This legislation begins the process of including a fee on zero emission vehicles to ensure that they begin to pay their fair share for the roads they also drive on.
It is estimated that the average New Jersey driver pays about $267 annually in gas tax revenue. The EV fee contemplated by this legislation is in-line with that figure without dampening a market that is being mandated to grow.
But the 5-year length of this legislation allows us all time to watch that market mature and develop better tools to develop a more precise user fee for zero emission vehicles in the future.
I want to close, where I began. This is personal to all of us.
Investing in infrastructure is not partisan.
It is not a Democratic issue or a Republican issue.
It is a New Jersey issue.
As part of the last renewal, there was a commitment to significantly increase the level of investment made in our counties and towns.
It did not matter if you lived in a Democratic town, or in a Republican legislative district.
Our leaders promised to make local investments to help everyone, and I am happy to report that it was a promise made and a promise kept.
For example, District 15, my home district represented by Assemblywoman Reynolds-Jackson has received $42 million since 2018.
Assemblyman Barranco’s District 25 got $44 million,
Assemblyman Clifton’s district received over $50 million.
And I’m sorry to say, Chairman, your district “only” got $33 million.
The renewal we are discussing today furthers this commitment. It maintains the current funding level for all the local aid programs in years 1 and 2 and then as the overall program size rises in years 3, 4 and 5, it dedicates 25% of that increase to counties and another 25% to local municipalities each year.
Investing in our infrastructure is personal to all of us. It provides direct and indirect jobs. It drives our entire economy (pun intended) and improves the quality of life for all of us.
For all these reasons, on behalf of our 20,000 members and our contractors, I am proud to support this bill.
Thank you.
Ryan Sharpe, Director of Government Affairs – UTCA
Thank you, Chairman Calabrese and members of the Committee for giving me the opportunity to testify on this measure. I also thank Chairman Calabrese for both sponsoring and posting this bill for a vote. My name is Ryan Sharpe and I am the Director of Government Affairs for the Utility and Transportation Contractors Association of New Jersey which represents over 1,000 firms that engage in all aspects of heavy, highway and utility construction as well as various entities that support those efforts.
As you are likely aware, the Transportation Trust Fund (TTF) is a significant funding source for critical transportation infrastructure projects throughout the state, including roads, bridges and transit systems. Put simply, the TTF works.
By establishing this dedicated and protected source of funding for vital transportation needs, the state implemented a responsible, efficient and cost-effective approach to maintaining and improving our transportation networks. In addition, the funding for this program–primarily generated through gasoline taxes–is Constitutionally dedicated for transportation purposes and cannot be diverted for other programs or initiatives.
However, in order to continue this critical investment, we need to both reauthorize the TTF before its funding lapses on July 1 and ensure revenue provided through our gas taxes is maintained at a level that meets our transportation needs now and in coming years.
Due to a number of factors, the revenue generated under our existing tax schedule is not sufficient to support our TTF program going forward. This bill addresses that shortfall by imposing a minimum increase in the gas tax and imposing a reasonable surcharge on the purchase of electric vehicles (EVs) that ensures EV drivers are paying their fair share to support our transportation needs.
Moreover, according to a study from the American Road & Transportation Builders Association (ARTBA), the annual $2.3 billion capital investment plan established through this bill provides significant benefits to our state, including more than 21,000 jobs per year providing workers with an estimated $1.7 billion in wages, an additional $4.6 billion in business activity and an estimated $432 million in additional state and federal tax revenue.
As such, we are pleased to offer our full support for this measure which is a responsible approach to addressing our TTF which is absolutely critical to our safety, economic well-being and quality of life. Therefore, we respectfully urge you to vote Yes on A-4011.
I have also included a copy of a study on the economic impact of this proposed capital program which was prepared by ARTBA’s economist, Dr. Alison Black. Thank you for your consideration of these comments and please do not hesitate to contact me regarding this or any other matter.
Joe Fiordaliso, President – American Council of Engineering Companies of New Jersey
Good morning, Members of the Committee. My name is Joe Fiordaliso and I serve as President of the American Council of Engineering Companies of New Jersey (ACECNJ).
ACECNJ is the business trade association for the engineering industry. ACECNJ’s membership includes 120 firms, representing 5000 New Jersey jobs. My member firms perform all manner of civil engineering, design and inspection of the roads, bridges and transit systems that give New Jersey its competitive economic advantage.
I am testifying this morning in support of A4011, legislation to revise the “New Jersey Transportation Trust Fund Authority Act,” revises calculation of the gas tax rate, and establish an annual fee for zero emission vehicles.
This bill amends the “New Jersey Transportation Trust Fund Authority Act of 1984” to make changes necessary to support the State’s Annual Transportation Capital Program for Fiscal Years 2025 through 2029. These changes also revise the rate of tax imposed on highway fuels under the Petroleum Products Gross Receipts Tax and establish an additional annual fee for zero emission vehicles from which all revenues would be dedicated to the Transportation Trust Fund (TTF). The bill extends and increases the New Jersey Transportation Trust Fund Authority’s (authority) existing authorization to issue transportation program bonds. Under current law, the authority is authorized to issue such transportation program bonds as are necessary to fund the Annual Transportation Capital Program, in an amount not to exceed $12 billion, through June 30, 2024. The bill extends this authorization through June 30, 2029 and increases the authority’s existing aggregate bonding capacity to $15.6 billion.
The bill authorizes $10.367 billion in capital program expenditures for a five-year period from Fiscal Year 2025 through Fiscal Year 2029. Specifically, this bill allows for an average annual capital program size of $2 billion from Fiscal Year 2025 through Fiscal Year 2029. However, during Fiscal Years 2027, 2028, and 2029, the bill requires certain amounts appropriated in excess of $2 billion to be allocated to counties, municipalities, the Department of Transportation, and the New Jersey Transit Corporation for transportation projects.
Under current law, the authority is required to count premiums, and not bond discounts, against its authorized bonding capacity for transportation program bonds. This bill provides that for Fiscal Year 2016 and thereafter, any net premiums received by the authority in connection with the issuance of transportation program bonds are to be counted against the authority’s authorized bonding capacity. This change allows the authority to account for the value of remaining bond premiums after subtracting the value of bond discounts in blended bond issuances when adjusting its bonding capacity after issuing transportation program bonds.
The current authorization for the Transportation Trust Fund Authority (TFA) expires on June 30, 2024. Without action by the Legislature to renew this authorization the State loses the ability to finance transportation projects. That means every project in the project pipeline – from concept development, to design, to construction – grinds to a halt.
Since its inception in 1984, the TTFA has required periodic reauthorization. The 2016 reauthorization was for 8 years and it is now time to renew that authority.
The bill before you this morning renews the authority of the TTFA and uses the true-up mechanism implemented in the 2016 reauthorization to establish the baseline revenue number needed to maintain the current $2 billion annual stateside capital program and gradually increase the program size over the five-year duration.
This is a modest, responsible program that continues the current level of investment in the roads, bridges and transit systems that are the lifeblood of our economy and ensures that people get safely to work, school, and vacation. This bill will maintain the current capital programs of the NJDOT and NJ TRANSIT. It will fund critical investments in county road and bridge assets and address local transportation needs.
The economic case for reauthorization is clear. The Building the Future Foundation, of which ACECNJ is a founding member, released a study this morning from the American Road & Transportation Builders Association (ARTBA) showing the numerous economic benefits of an annual $2.3 billion highway and bridge capital investment plan. These include:
- Increased annual business activity of $4.6 billion across all sectors of the economy
- Over 21,400 jobs per year
- These workers will earn an estimated $1.7 billion per year in wages
- Over half of these jobs – 55 percent – would be outside of the construction industry
- The additional economic activity would yield an estimated $432 million in state and federal tax revenue
The TTFA was originally established in 1984 to establish a dedicated source of revenue for our State’s transportation system. It was designed to make funding for these critical investments impervious to the whims of the annual budget and not subject to General Fund balances. There is as much logic behind that today as there was in 1984.
A word of caution – the 2016 reauthorization wound up embroiled in political disagreements that prevented agreement and led to a 3-month TTFA-related shutdown. That pencils-down order had devastating impacts on the capital programs of NJDOT and NJ TRANSIT. Delay claims, combined with the sheer cost of stopping and then resuming projects took a serious financial toll on the program.
For the 5,000 New Jerseyans working for my member firms this meant furloughs, layoffs and in some cases transfers to another State or region. Some of those people never came back. On behalf of my 120 member firms and over 5,000 of your constituents, I implore the Legislature to never allow another shutdown of this type to occur.
In conclusion, TTFA needs to be reauthorized now. The program before you is modest and reasonable. The program benefits extend to the entire State. The condition of our transportation system directly correlates to the health of our State’s economy. For all of these reasons, I respectfully ask Members of the Assembly Transportation & Independent Authorities Committee to vote to release A4011 this morning.
Thank you for your time and for the opportunity to testify. I am available to answer any questions you may have.
About Building The Future Foundation
Building the Future Foundation is a non-profit, social welfare organization that works to achieve sound legislation and public policies with respect to building infrastructure, economic development, and employment opportunities and economic security for working families. For more information on Building the Future Foundation, please visit
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