NJ Turnpike won't be sold or leased - Corzine outlines eight principles for monetization

Reacting to constant politicking over what is planned for the future of the state's beloved Turnpike, New Jersey Governor Jon Corzine said his planned "monetization" does not involve either sale or lease. However he said that the state has amassed over $30b in debt and has "staggering" unfunded pension and healthcare liabilities.

Corzine said his "vision" for a better New Jersey required "new investments" and "renewed political courage."

His administration has been "developing a new (financial) vehicle to achieve this goal," he said, which he called "monetization" of state assets of which the Turnpike is by far the largest.

Eight principles for monetization of Turnpike

The statement continued:

“Any asset monetization proposal put forth by my administration will adhere to the following core principles:

1. New Jersey’s roadways will not be sold; and they will not be leased to a for-profit or foreign operator.

2. Allowable uses of proceeds (reducing State debt and capital investments) will be identified upfront and subject to public and/or legislative approval with safeguards against diversions for other uses.

3. New Jersey citizens will retain ownership and the benefits from both initial proceeds and ongoing operations.

4. Safety, maintenance and operating standards will be provided at current or improved levels.

5. Sufficient funding to meet the long-term capital needs required to improve our roadways and reduce congestion will be provided.

6. Terms and conditions of employment for current employees and contractors will remain unchanged with prevailing wage and competitive contracting procedures retained.

7. Toll schedules will be open, predictable and available to the public.

8. There will be a substantial, open and public discussion in advance of any transaction. I will hold 21 town hall meetings in 21 counties.” (end direct quote from Corzine statement)

TOLLROADSnews 2007-06-29