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The League of Women Voters
of New Jersey

a nonprofit, nonpartisan organization whose purpose is to promote political responsibility
through informed and active participation in government

 

NEWS RELEASE

July 27, 2000

Contact: 609-394-3303

Judith Cambria, LWVNJ Fiscal Policy Specialist

Sandra Matsen, President

 

Legal Action To Stop the Placement on the November Ballot

Of a Single Public Question

Containing Two Constitutional Amendments

 

The League of Women Voters of New Jersey (LWVNJ) commenced an action on Monday, July 24, in Superior Court, Law Division, Mercer County challenging the constitutionality of the single ballot question that contains two amendments to the New Jersey Constitution. The League is asking the Court to declare Senate Constitutional Resolution 1 unconstitutional and to enjoin the Attorney General from placing the question on the November ballot "unless and until all constitutional problems have been cured ".

Mercer County Assignment Judge Linda R, Feinberg has set Friday, August 4 at 2:30 P.M. for a hearing on the merits of the League’s complaint. The League contends that placing two constitutional amendments on the ballot in a single public question violates Article IX. 5. of the New Jersey Constitution which requires that amendments be "submitted in such manner or form that the people may vote for or against each amendment separately and distinctly."

Plaintiffs Judith Cambria, Fiscal Policy Director of the League, and the League of Women Voters of New Jersey are represented by Douglas S. Eakeley Esq., of the Lowenstein Sandler law firm of Roseland, New Jersey. Defendants are DeForest Soaries, Secretary of State, and John Farmer, Attorney General. State law makes Soaries responsible for certifying the question, and Farmer for placing it, on the November ballot.

A Constitutional Resolution (SCR1) approved by the Senate and Assembly determined the "manner and form" in which the constitutional amendments would be presented to voters. The resolution set forth a single question which asked the voters to vote Yes or No on dedicating $200 million from the Petroleum Products Gross Receipts Tax and $200 million from the Sales and Use Tax to the Transportation Trust Fund.

LWVNJ does not oppose a vote by the citizens on the amendments to dedicate tax revenues to the Transportation Trust Fund. It seeks only to protect the right of citizens to vote on each amendment separately. Unless the two amendments are presented in two public questions, voters will be unable to vote for one proposed amendment but not the other. They either will have to approve dedication of both streams of revenue or neither. Or, they will have to give up their vote. In any case, voters in this situation will be irreparably harmed by the denial of their right to "vote for or against each amendment separately and distinctly" Article IX. 5.

LWVNJ had previously requested the New Jersey Legislature to cure this defect in the Constitutional Resolution prior to its enactment in letters to the legislative leadership and in testimony before the Assembly Appropriations Committee. (see below) Nevertheless, the legislature approved the constitutional resolution without amendment, forcing the League to turn to the judicial system to protect a fundamental right of New Jersey citizens.

Background

SCR1 is companion legislation to the Congestion Reduction and Transportation Trust Fund Renewal Act. The Renewal Act authorizes a four-year, $1 billion annual program of capital construction by the Transportation Trust Fund Authority. The Trust renewal legislation authorizes two new sources of revenue for the Transportation Trust Fund: tax revenues derived from the Petroleum Products Gross Receipt Tax and a portion of the revenue from the Sales and Use Tax derived from the sale of new motor vehicles. It does not authorize this use by legislative dedication. Instead, it calls for a vote of New Jersey citizens to amend the New Jersey Constitution to constitutionally dedicate these revenues forever to transportation capital projects. The Renewal Act was approved by both houses of the Legislature and signed by the Governor -- although State Treasurer Roland Machold had testified against the proposed dedication of the tax revenues as being fiscally imprudent.

The $1 billion in annual construction is to be funded by $650 million in borrowed money and the remainder from the state’s General Fund, the constitutionally dedicated motor fuels tax, and other legislatively dedicated revenues. Upon approval by the voters, revenue from the petroleum products and sales tax would join the motor fuels tax as constitutionally dedicated funds. The Transportation Trust Fund Authority is responsible for making annual repayments on bonds issued to borrow money for transportation projects. The Authority itself generates no revenue for repayments. The Authority required additional revenue because existing sources of income were no longer capable of paying the higher costs incurred by the rapid growth of debt service payments; increased funding of short-term repairs; and increased payment of salaries for staff formerly paid by the Department of Transportation.

The Authority issued $5 billion in bonds from 1992 to 2000. Debt service payments for 2001 are estimated to be $433 million.

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The text of the League’s 6/7/00 letter to the Senate President and Speaker of the Assembly and 6/22/00 testimony to the Assembly Appropriations Committee may be found on LWVNJ’s Web site.

Testimony, SCR 1 and ACR 116, Assembly Appropriations Committee (6/22/00)

Letter to the Senate President and Speaker of the Assembly (6/7/00)

Testimony on Transportation Trust Fund Renewal Act, S.16 (5/4/00 and 5/11/00)

Transportation Funding Bill article (4/00)  




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