Deadlock Continues Over Transportation Funding in New Jersey

Stalled road construction project in Summit, New Jersey

Road and rail construction projects across New Jersey remain stalled as Gov. Chris Christie and state legislators continue a standoff over how to replenish the state's nearly bankrupt Transportation Trust Fund.

According to Robert Briant of the Utilities and Transportation Contractor's Association of New Jersey, 800 workers have already been laid off due to the work shutdown.

That number could grow to 1,700 by the end of this week, says Alison Premo Black, chief economist with American Road & Transportation Builders Association. The layoffs are particularly painful because they come at the height of construction season, when many workers are counting on employment. Black authored a report that found it would cost $39 million just to stop — then later restart — the hundreds of affected projects. 

"It's extremely poor timing that the legislature in New Jersey can't come up with a solution to fix this problem, and they are putting thousands of jobs at risk," Black said.

And even when restarted, the shutdown will have a ripple effect. Tom Wright is the head of the Regional Plan Association. He said because the costs of labor and materials only go up, delaying projects — even briefly — means that they'll ultimately be more expensive. 

"The cost of construction has been far outpacing inflation for a generation now," he said. "Part of the whole urgency about getting these projects done is that they don't become cheaper over time...And the more maintenance gets deferred, the more repairs need to be done."

Another complication: the workforce might not be there when you need them. "Contractors will move on to the next project," Wright said. "People are going to go work on other things, and these projects are going to get put to the back of the line."

"None of this is good," he added. "There's not a single silver lining in this."

Gov. Christie ordered the halt of transportation projects late Friday night after the state Assembly and Senate failed to agree on a bill to replenish the fund. Together with Christie, the Assembly passed a bill that would have provided funding by raising the state's gas tax — one of the lowest in the country — and lowering the sales tax. Legislators in the Senate, however, opposed the bill over concerns that it would cut too much revenue from the state budget.

On Tuesday, a spokesperson from Christie's office confirmed that the governor met with Senate President Stephen Sweeney to discuss a compromise for replenishing the fund. "A proposal was provided and it is still under review," said spokesman Brian Murray. Neither Sweeney nor the governor's office would provide any details.

One halted project is the 100-year-old, structurally deficient Eighth Street Bridge that connects Passaic and Wallington. Rebuilding work was set to begin this summer.

"This is not just a matter of making things prettier; this is a matter of public safety," Passaic County Administrator Anthony De Nova said, calling on Christie and the legislature to solve the deadlock as soon as possible. "Bridges and roads need to be repaired."