The legislation calls for creation of a new state agency to issue bonds to pay at least half of $32 billion in state debt and fund transportation projects.
To support the plan, Corzine wants to increase tolls 50 percent in 2010, 2014, 2018 and 2022. Those increases would include inflation adjustments, and after 2022 tolls would increase every four years until 2085 to reflect inflation. The Atlantic City Expressway, Garden Parkway, New Jersey Turnpike and Route 440 would be affected.
Under the bill, which Corzine wants approved by mid-March: - The New Jersey Turnpike Authority would be renamed the New Jersey Capital Solutions Corp. and the expressway would be transferred from the South Jersey Transportation Authority to the new CSC.
- The CSC would consist of five members - the transportation commissioner, the state treasurer, another executive branch member appointed by the governor and two public members recommended by the Senate president and Assembly speaker.
- The governor's power to veto Turnpike Authority decisions, approve bond issuances and approve toll changes would not apply to the new CSC.
- The CSC would create two nonprofit corporations, the Public Benefit Corp. and the Citizens' Board, which would include 15 people appointed by the governor to elect members to the Public Benefit Corp., or PBC.
- Citizens' Board members would include people with expertise or an interest in toll roads or transportation matters.
- The PBC would have authority to enter into an agreement to operate and maintain the toll roads and Route 440.
- Some people would be barred from serving on the PBC, including senior state government officials, the governor, the lieutenant governor, legislators and legislative staff.
- The PBC would be required to hold one annual public forum and hold public meetings.
- The agreement to operate the toll roads would be no longer than 75 years, although an additional 24-year term could be added.
- The agreement must provide that all toll road employees become workers for the PBC, with the state seeking federal approval to keep the workers in the state's retirement system.
- The PBC would be held to competitive bidding requirements and to contract with the state police for law enforcement services.
- Reports received by the CSC from the PBC would be subject to open public records laws.
- The PBC would have to follow federal corporate governance laws.
- The PBC would borrow between $32.6 billion and $37.6 billion.
Of that amount, $8 billion will be held for financing costs and toll road improvements, $5.7 billion would retire toll road debt, $9.2 billion would retire state transportation work debt and the rest used to pay general state debt.
- Retiring this debt is anticipated to save the state $600 million to $1 billion a year for a decade, with smaller savings in later years.
