The 2005 campaign season is over. After spending millions of dollars by both major political parties the political make up of the legislature is nearly the same. Here in Monmouth County, Republican legislative candidates overcame a massive money assault from out of county sources.

Finally, the airwaves are free of the scandalous TV and radio commercials, household telephones are quieter now that the automated telephone calls have stopped, our mail boxes are filled with Christmas cards as opposed to candidates’ direct mail pieces and the lawn signs have come to peacefully at rest in the county landfill.

Now it’s time for incumbent elected officials to survive the infamous “lame duck” season. For the newly elected candidates they should be making plans to fulfill their campaign promises. Oh really?

It is rumored that the Democrat leadership will be introducing proposed laws in early January to hike New Jersey’s gas taxes from the current 14.5 cent to, well who knows?

Governor –elect Corzine hasn’t even taken office and it is already rumored that he is flip flopping on his no gas tax pledge. No wonder why the public has little faith in politician’s campaign promises. Let’s hope that this is not true.

This eighty year old tax started at 2 cents per gallon and has risen incrementally over the years. The last increase was in 1988.  Nine cents of the 10.5 cent motor fuels tax is constitutionally dedicated to New Jersey’s transportation Trust Fund. There is also a 4 cent Petroleum gross receipts tax that we eventually pay at the pump.

What is the problem? No matter how much is generated by the gas tax, the amount dedicated to the TTF is $405 million. The annual amount of gas tax collected at its present rate is in excess of $550 million. The remaining $145 million is being sent to the General Fund.

Another part of the problem is also the fact that money in the TTF has been used to pay for salaries and raises for its supervisors, a direct conflict for the money that was only supposed to be used to pay for infrastructure needs and improvements. Then there is the fact that contracts are given to companies that might not have given the lowest bid, but maybe are better connected.

Have you received any deliveries lately? Have they included a “fuel surcharge” in response to the $3 per gallon pump prices we recently experienced? If the gas tax increases any further, you can bet that you will see a new round of that type of “pass on” taxes to us as consumers.

In Monmouth County alone, there are a number of bridges that are 50 years old or older that are in dire need of repair or replacement. Just think about the roads around you, I’m sure you can think of a number that have such poor surfaces that it’s almost like a slalom course. Add to that the fact the New Jerseyans commutes are becoming longer and longer, with more traffic on our roads than ever before.

What is the political lineup? Those in favor of the gas tax hike are a majority of the Democrat members of the State Senate and General Assembly, supporters of transportation issues, contractors that build bridges, pave roads, sell maintenance equipment and of course the unions that are employed in all of the above industries. Those opposed to the gas hike are a majority of the Republican members of the State Senate and General Assembly, millions of New Jersey consumers, commuters and supporters of transportation issues like me that believe that there is another way to solve the problem.

What is the solution? Rather than supporting a gas tax hike, it is more beneficial to support fiscal restraint and to reform the present Transportation Trust Fund (TTF) structure, and to dedicate the existing Motor Vehicle Commission revenues- drivers’ license and registration fees that are currently being diverted to the General fund. After all, isn’t if perfectly reasonable that money derived by the regulation of motorists in this state be used to help finance New Jersey’s transportation infrastructure needs?

The Republican caucus has two possible options for maintaining the TTF without increasing the gas tax. Maintain the $950 million annual funding level with not year-end provisions, so there would be not need to renew2every five years. This could include a 50 percent bonding cap, limiting bonding to $475 million per year. The second would be to constitutionally dedicate $300 million in Motor Vehicle fees, increase the Turnpike Authority’s obligation to $45 million and constitutionally dedicate all revenues from the motor fuel tax to the TTF. 

Whatever the solutions that are proposed, I am not in favor of raising the gas tax. We need to cut the wasteful spending, rather that increasing the exorbitant taxes that are imposed on all of us. For more information on the gas tax, or to register your opinion please contact my office at 732-708-0900 or contact my website at www.corodemus.com.