Corzine Must Fix State Tranportation Fund

New York, NY —

New Jersey Governor-elect Jon Corzine will inherit a state transportation system that faces a major funding crisis. But he and most lawmakers are reluctant to resort to the usual fix -- Raising the state's gasoline tax while motorists are getting punnished at the pump. WNYC'S Bob Hennelly reports on one suggested way out.

REPORTER: The transportation Trust Fund pays for New Jersey's roads and rails and is funded by the state gas tax paid by motorists. The Regional Plan Association's Tom D'Alessio says the fund is in a precarious position.

D'ALESSIO: Starting next July every penny that goes into the gas tax will go to pay debt do we are in danger not only of not having our own revenue sources for capital but of loosing Federal funding.

REPORTER: The RPA and a coalition of advocacy groups have proposed a variety of ways to fix the fund. Step one is to end the well established practice of siphoning off $7OO million in auto fees, turnpike tolls and fuel taxes for purposes other than transportation. Step two: stop using money borrowed for long term construction projects to pay for day to day operating expenses.

The coalition also recommends the state consider establishing a property tax on vehicles, fees on shipping containers that come into the state's port, higher rental car fees and privatizating a toll road. The advocates concede it may be tough medicine but that the alternative--- an underfunded transportation system falling into greater disrepair will set back the regional economy decades.