Dear Mayor:

The condition of New Jersey's Transportation Trust Fund (TTF) has reached crisis proportions. And so, we all need immediate action to reform and replenish the Fund. A solution to this crisis should not have to wait until after the Governor and the Legislature have dealt with the overall budget deficit or any other issue.

By June 30, 2006, the TTF will be completely bankrupt. All $805 million in constitutionally dedicated TTF revenues will be consumed by debt payments. The New Jersey Department of Transportation and NJ TRANSIT could be forced to shut down. And $150 million in annual Local Aid for municipal and county transportation projects will disappear. But even before June 30, the effects of inaction will be apparent, as municipalities and counties begin work on their annual budgets.

New Jersey's counties and municipalities are responsible for 88 percent of our roads and 39 percent of our bridges. Local roadways and bridges carry 55 percent of all traffic; and local governments maintain 32,810 centerline miles of roads, 2,498 major bridges and 4,584 minor bridges. In 2003, it was estimated that, for repair and maintenance of these assets - not for the construction of any new roads and bridges, but only to ensure the safety and utility of the current stock - we would annually need $211 million for county bridges, $7.5 million for municipal bridges, $44 million for county roadways and $112 million for municipal roadways for a total of $374.5 million.

Local officials know that these investments must be made. Failure to do so can compromise the safety of the public, the economic vitality of our communities and the security of our neighborhoods.

But, in order to pay for these improvements, absent a long-term commitment of increased funding to the Transportation Trust Fund, in general; and to the Local Aid Program, in particular, New Jersey's chronic and anachronistic over-reliance on the regressive and excessive property tax will intensify.

So, a long-term fix for the Transportation Trust Fund isn't only about roads and traffic and jobs and public safety. It is also a necessary first step on the road to property tax reform. An Administration and a Legislature dedicated to property tax reform - and we all heard a lot of talk about that during this fall's campaigns - have to first make certain that the problem doesn't get any worse, before they even start to think about how they can help the people of New Jersey to make it better.

The Governor's 2003 Blue Ribbon Transportation Trust Fund Commission offered sound and feasible recommendations. In proposing that dedicated new revenues fund a $3.1 billion annual capital budget for the NJDOT and NJ TRANSIT, the Commission did not neglect local needs, asserting: "Local aid to counties and municipalities will increase by $150 million, providing funds to repair roads, build sidewalks and make intersections safer and less congested."

The Commission report needs to be studied by all state policy makers. And the issue must be addressed.

The New Jersey State League of Municipalities has been out front from the beginning on this critical issue. The League also has been active in efforts for reauthorization by Congress of the TEA 21 federal funding program to the states. In fact, the Trust Fund must produce the matching dollars to take advantage of federal transportation aid. Working in cooperation with other public organizations such as the Alliance for Action and the New Jersey Association of Counties, we can and must rally our local residents to join and support the battle.

Over the past decade, New Jersey's ability to fund repairs and safety improvements to highways, bridges and public transportation has been jeopardized by poor fiscal policy and growing financial constraints.

We respectfully urge all involved to work together to implement an adequate solution to this monumental problem. Please contact your own State Legislators on this matter.

Any questions, contact Jon Moran at 609-695-3481 ext. 21.