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The League of Women Voters
of New Jersey

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Follow-up Action on Transportation Bond Issue to Put Pressure on Legislature to Increase Tax(es) to Fund Transportation Needs

The Campaign for Responsible Funding of New Jerseys Essential Needs Has Just Begun

by Judy Cambria, LWVNJ Fiscal Policy Specialist

11/99

Having opposed the $500 million transportation bond issue to raise public awareness of excessive borrowing and the need for a tax increase, and to pressure our elected representatives into action, the League must continue to play a positive role in forcing our elected representatives to provide a fiscally responsible solution to essential transportation needs. Included in your SBR is a letter to editor/oped which was sent out immediately after the election. Please let us know if you saw it in the newspaper you read.

Additionally, LWVNJ will send letters to Governor Whitman, Senate President De Francesco, Assembly Speaker Jack Collins, and all legislators urging quick action after the first of the year to raise a tax or taxes to fund transporation needs and reduce borrowing. Also, we will urge that the administration issue the full amount of bonds for county bridge repair, $250 million, immediately. (There is concern that this bonding may be done over several years rather than providing the full amount quickly despite the fact that James Weinstein, Transportation Commissioner, reported during the campaign to pass the bond issue that more than 500 locally owned bridges need repair or replacement, with a total cost of $1.2 billion.)

Senator DeFrancesco is a particularly important target for the League because both before and after the election he said there was no need to raise taxes. Instead he called for dedicating the last 1 1/2 cents from the gasoline tax not already constitutionally dedicated for transportation and dedicating some of the 4 cent per gallon tax on petroleum products paid by refineries to the Transportation Trust Fund (TTF). All of these taxes already are consumed by the activities of the Department of Transportation and dedicating them to capital needs would just mean DOT costs would have to be paid from other tax revenues from the General Fund. Reauthorizing TTF without additional state tax revenue will assure a continuation of the massive borrowing of recent years. ($5.6 billion, with $1.5 billion of this amount in 2000 alone). This does not include the $500 million bond issue just approved by voters.

Action by Local Leagues

The only action called for at this time is a letter or phone call to Senator DeFrancesco opposing his plan and urging that he act as a responsible leader by supporting an increase in one or more of the transportation-related taxes in order to meet the essential transportation needs of business and citizens.

Further action may be called for in January when the new legislature convenes.

Included in your SBR is a LWVNJ report on bonding for transportation, and cost to repay principal and interest on this borrowing (debt service).


Report on League Campaign in Opposition to $500 Million Bond Issue LWVNJ put up a spirited, if limited, battle in opposition to the $500 million transportation bond issue to highlight the use of massive borrowing because of the failure of our elected representatives to provide adequate tax revenue to fund essential transportation needs.

We are discouraged that so few newspapers provided coverage of our opposition, and the reasons for it. This includes failing to use our press release or an Op/Ed piece we distributed while providing significant coverage to those supporting the bond issue. The government put on a serious campaign and enlisted business to start the Save Our Bridges Coalition which put out lots of PR and raised $75,000 in two weeks to run a radio ad campaign the weekend before election.

On the other hand, the Star-Ledger did an outstanding job with an investigative report by Dunstan McNichol that laid out the borrowing and its cost, the use of borrowed funds to pay for annual expenses rather than capital needs, and the need for a tax increase. Like the League, even though they recognized the needs, the editorial board of the Star-Ledger urged opposition to the bond issue. As part of their on-going coverage, the League’s position and reasons for opposition were reported numerous times, with quotations. Reuters News Service also covered the League’s opposition both before and after the election. Radio station 101.5 news reported the League’s position, and repeated it on the day before election. It’s morning talk-show host urged a NO vote.

TV coverage was excellent on News 12, where Judy Cambria was interviewed and clips were used for a number of days. Cambria also debated the head of the Alliance for Action on two news shows at News 12. NJN originally refused coverage, but when the issue became hot they interviewed Cambria for 15-20 minutes the day before election. Their coverage was informative, and LWVNJ was featured along with the CEO of Bell Atlantic, with the League getting two exposures to one for BellAtlantic.




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