Gov Corzine hints at new public authority to control New Jersey Turnpike

Governor Jon Corzine speaking to reporters today seemed to hint at plans to establish a new public authority to run the New Jersey Turnpike. He is quoted as saying his plan would be "entirely different" from the longterm lease concession proposed by Gov Rendell in Pennsylvania. It would be "a new public benefit corporation... as opposed to privatization," he is reported as saying.

Details would come out in "about two weeks" which is June 5 or so.

Corzine was quoted: "I think people, if they're open-minded about it, will be very pleased to see that whatever occurs and whatever we do will be for the benefit of the public... We have to get on with convincing the public we are not ruining their future, that we're actually building their future, that we're going to do it soundly, safely and in the public interest."

The New Jersey Turnpike Authority is itself a public benefit corporation so it is unclear what would be achieved by forming a new one, apart from providing work to lawyers, signwriters and stationery companies to change titles and names.

Key to generating new net revenue is a new incentive structure for management and access to private equity markets. Maybe Corzine has in mind that a public benefit corporation could be  a New Jersey Turnpike Corporation in which the state retained 51% of stock? That was the European model for tollroads  before they went for full privatization in which the remaining government stockholding was sold by tender.

Corzine, 61, continues to recover from a near fatal accident on the Garden State Parkway April 12 after which he was hospitalized for 18 days.  He said he is now working six to eight hours a day and gets around the governor's mansion on crutches.
TOLLROADSnews 2007-05-22