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As in other Mid-Atlantic states, New Jersey's transportation resources are barely sufficient to maintain the existing system, let alone increase capacity. A large percentage of transportation infrastructure has reached - or will soon reach - the end of its useful life. Meanwhile, a growing population and a recent economic expansion is straining the existing system, making capacity improvements increasingly urgent.
The New Jersey Department of Transportation (NJDOT) has made a strong commitment to the preservation and maintenance of New Jersey's existing transportation system, through such activities as reconstruction and rehabilitation of structurally deficient bridges and the improvement of pavement quality. The state estimates that structurally deficient bridges alone will require over $3.5 billion to fix.1
The nation's most densely populated state is also one of the most congested. New Jersey must continue to expand its transportation system in order to maintain, if not improve, mobility for both private automobiles and commercial vehicles. New Jersey's well-known and well-traveled toll roads make up about 20 percent of state-maintained highways. A portion of the toll revenues is deposited into the state's Transportation Trust Fund, along with proceeds from a motor fuel excise tax and heavy truck fees.
Recognizing the urgency of the state's funding problems, New Jersey voters approved a $500 million bond issue for transportation in November of 1999. Half of the proceeds will pay for local bridge repairs on an accelerated schedule and the remainder of the bonds are available for other transportation improvements. Even with the bond issue, however, the state's transportation needs far outstrip its financial resources.
New Jersey has funded almost all toll road construction in the state with toll revenue bonds. Large capital projects, such as a $361 million widening of the New Jersey Turnpike in the mid-1990s, have helped New Jersey build up substantial toll credits. Under the "soft match" provisions of Title 23, Section 120 (j), New Jersey has been able to use these toll credits to secure 100 percent Federal funding for state transportation projects. As of September 2001, New Jersey has used approximately $860 million of $1.9 billion in approved toll credits for highway projects. In addition, $902 million has been transferred to the Federal Transit Administration for transit projects.
New Jersey Transit, the statewide transit agency, used toll credits to cover the non-Federal ] share of project costs for a one-mile, $200 million extension of the Newark City Subway light rail line, which will eventually connect Newark with Elizabeth. The 6.1-mile, $1 billion Hudson-Bergen Light Rail project was another candidate for soft match funds. Finally, NJDOT was able to allocate $15 million in toll credits for the southbound US 1/9 Waverly Yards Viaduct reconstruction project, also located in Newark.
These projects illustrate how the capital investment New Jersey has made in its toll system can be used to leverage Federal funds for other projects eligible for Federal aid. Through the Section 1044 toll credit provisions, the expenditures that New Jersey has made in improving and expanding its interstate toll system can be counted as the local match for eligible projects. This has allowed the state to advance more projects sooner and receive up to 100 percent Federal funding on other capital projects.
