Dear Mayor:

Yesterday, the League testified in support of S-1470/A-2813 and SCR-78/ACR-182 as positive and necessary steps out of our current transportation funding crisis. S-1470/A-2813 are companion bills, which would replenish the 22-year old Trust Fund and increase Local Aid funding (for municipal and county roads and bridges) from $150 million, per year, to $175 million. SCR-78/ACR-182 would seek voter approval for an amendment to the State Constitution to dedicate the entire 10.5 cents per gallon of the gasoline tax to the State Transportation system.

Absent passage of the legislation, the TTF will be completely bankrupt by June 30, 2006. 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.

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.

Along with the New Jersey Society of Municipal Engineers, we are concerned with efforts that have been made by the New Jersey Association of Counties (NJAC) to change the funding formula for local aid monies. While we gladly support an increase in funding for county transportation projects, we oppose any efforts to direct such funds from municipalities.

Such a diversion would do nothing for our property taxpayers. In fact, it would tend to benefit more affluent taxpayers, at the expense of those least able to afford any increased burden. If municipal aid is cut to increase county aid, the taxpayers of a municipality will have to make up 100% of the shortfall. If the municipality's taxpayers are less affluent than others in the county, they will unfairly suffer. Any county shortfalls, on the other hand, will be made up by a broader tax base, with more affluent county property taxpayers covering a fairer share of the deficit.

If the counties' problems can be addressed by other means, we would support their effort to assist county property taxpayers. It is important to note that the NJAC's proposal has not been incorporated into the bill. It is only "under consideration." So, we must oppose the NJAC proposal and instead support the bill as currently drafted.

Both bills stand at "2nd reading" in their respective houses and likely will be scheduled for floor votes soon. We ask that you contact your State Senator and express support for S-1470 and SCR-78. Likewise, we ask that your contact your Assembly representatives and ask for their support of A-2813 and ACR-182. And please be clear that no funds should be diverted from municipal governments.

If you wish to discuss this further, please contact Jon Moran at 609-695-3481, ext. 21.

Thank you for your consideration.