Assembly to weigh road plan hiking gas tax, cutting others

“New Jersey taxpayers need to know this bill is even worse than imagined”.

A bipartisan plan to pay for New Jersey road and bridge work for the next 10 years with the help of a 23-cents-per-gallon increase in the gas tax passed its first legislative test Thursday, clearing two key committees.

Lawmakers on Monday formally introduced legislation to replenish the state’s current $1.6 billion transportation trust fund with a $2 billion-per-year plan that goes until 2027.

Sarlo said the renewed TTF would invest $2 billion a year for 10 years to fix, upgrade and maintain the state’s roads, bridges, tunnels and railways.

The legislation provides for a $2 billion-per-year transportation trust fund, up from $1.6 billion now.

Among the most notable changes, the Democrats want to spend $45 million more to raise the income ceiling for seniors and the disabled to qualify for the Senior Freeze property tax relief program from $70,000 to $87,000, and eliminate a proposed $25 million cut to hospital charity care aid. The plan is financed in part by raising the state’s 14.5-cent fuel tax to 37.5 cents.

Jennifer Beck says residents can’t afford to pay more for gas. A 10.5-cent tax on gasoline sold at the pump will also remain in place. The tax would be capped at three dollars, meaning the surcharge would not be applied to sales above three dollars a gallon. Michael Doherty, who opposes the deal because of the gas tax hike. Lawmakers are also calling for establishing a tax deduction for charitable contributions. Proposed tax hikes on jet fuel and diesel also remain in the bill package.

But the proposal is taking flak from many sides. It also leaves just $400 million in budget surplus, about $200 million less than the governor’s revised proposal. The plan also has tax cuts, including phasing out the estate tax, raising retirement income exclusions and increasing a tax credit for low-income filers.

The plan requires a constitutional amendment to be enacted, which means the state’s Democratic-controlled Legislature would have to vote to put it on the ballot for New Jersey voters to decide the issue.

Robert Briant, chief executive of the Utility and Transportation Contractors Association, called the introduction of the legislation “an fantastic step forward for the people of New Jersey”.

“It jeopardizes critical funding for education, healthcare, public safety, and other public services that make New Jersey a great state for small businesses to thrive in”, said Jerome Montes, the organization’s business representative.