Listen to this article

During a Tuesday event in Aberdeen, Gov. Phil Murphy signed legislation into law that renews the state’s Transportation Trust Fund (TTF) for five years.

Assembly Bill 4011/Senate Bill 2931 includes a gas tax increase of nearly 2 cents per year over the next five years as well as a new annual electric vehicle fee of $250.

As NJBIZ has reported, the fast-moving bill became a bit of a lightning rod between the two parties and different stakeholders over an issue that previously had bipartisan buy-in. Critics note the importance of the funding to maintain and modernize the state’s transportation infrastructure while creating good-paying jobs, and alleviating the burden on local taxpayers — but bemoan the approach.

The reauthorization comes three years before the TTF was set to expire. The five-year program begins July 1, 2024, and expires June 30, 2029. Some features include:

• Adjusts the Petroleum Products Gross Receipts Tax rate by updating the statutorily prescribed revenue target, known as the highway fuel cap, which is currently based on 2016 highway fuel tax collections.
• Authorizes nearly $10.37 billion in appropriations for the state’s Annual Transportation Capital Program from Fiscal Year 2025 through Fiscal Year 2029 – with an estimated $2.3 billion passed on as state aid to counties and municipalities for transportation projects.
• Provides up to $8.84 billion in bonding authority to the Transportation Trust Fund Authority over the that period.
• Provides nearly $1.5 billion in pay-as-you-go funding for transportation projects.
• Grows the $2 billion maximum annual capital program amount by 3% in years four and five of the reauthorization – with the incremental revenue growth split evenly among NJ Department of Transportation, NJ Transit, county governments and municipal governments.
• Bolsters NJ Transit by providing another $91.75 million over the last three years of the program; by year five, NJ Transit will receive over $813 million annually for capital projects.

Maintaining and improving

Murphy noted that the Garden State sits at the heart of the world’s busiest commerce stretches.

“Whether it’s trying to get home to their families after a long day or shipping critical goods to keep our economy humming, our residents, and our businesses depend on the strength of our transportation system to get where they need to go,” said Murphy. “This legislation will ensure we deliver for them by enabling us to rebuild and maintain our entire transportation system, while creating thousands of good-paying jobs in the years to come and easing the burden of property taxes by offsetting these costs for local governments.”

The new law marks the seventh reauthorization of the TTF since it was established by the Legislature in 1984.

“We appreciate the Legislature taking action to renew the TTF, which is vital to maintaining and improving our state’s transportation infrastructure,” said NJDOT acting Commissioner Fran O’Connor. “This bill increases funding for NJDOT’s Local Aid programs so even more critical infrastructure projects can get done at the local level.”

“This investment in the state’s infrastructure is critical for our transportation system, the economy, and our quality of life,” said Senate President Nick Scutari, D-22nd District, a co-sponsor of the measure. “The renewed Trust Fund will help ensure an infrastructure that transports people and products safely, effectively and efficiently. It will provide benefits to New Jersey residents for years – and even generations – to come.”

“New Jersey’s transportation infrastructure is the lifeblood of an entire economy from daily commuters traveling to job centers to students traveling to businesses bringing their goods to market,” said Assembly Speaker Craig Coughlin, D-19th District. “Every resident and business are the beneficiary of these investments.”

An economic boost

The signing was applauded by a number of business groups, leaders, stakeholders, mayors, county officials and more.

“The replenishment of the Transportation Trust Fund is not only a sound investment in our critical infrastructure, but it will help increase economic productivity and foster long-term economic growth by creating construction employment and making our transportation system more efficient, reliable and safe,” said Michael Egenton, executive vice president of government relations for the New Jersey State Chamber of Commerce.

“The New Jersey State AFL-CIO has consistently supported investment in the state’s infrastructure, and we were a proud advocate for the legislation signed into law today,” said Charles Wowkanech, president, New Jersey State AFL-CIO.

“This is an historic day for New Jersey – historic for everyone who lives, works, plays and visits here,” said Jerry Keenan, president, New Jersey Alliance for Action. “It’s New Jersey’s biggest transportation funding decision in eight years.”

“The League appreciates the work of the Governor and the legislative sponsors for the extension of the Transportation Trust Fund. This funding supports the local infrastructure that allows workers to get to their jobs, children to get safely to school, first responders to quickly arrive to emergencies, commerce to move more efficiently and local budget makers to provide tax relief to residents,” said Michael Cerra, executive director of the New Jersey League of Municipalities.

“NJAC commends Gov. Murphy and legislative leadership for renewing the Transportation Trust Fund as a stable, dependable, and long-term source of constitutionally dedicated funding that will continue to ensure a safe and reliable network of roads and bridges across the Garden State,” said John Donnadio, executive director, New Jersey Association of Counties. “As a vital component of the Fund, Local Aid allocations to counties and municipalities provide critical property tax relief, promote economic growth and development, and protect the motoring public on local roads and bridges.”

“The recent reauthorization of the Transportation Trust Fund will help to support our long-standing infrastructure needs in New Jersey, paving the way for people and goods to move where they need to be safely, quickly, and conveniently,” said William Mullen, president, New Jersey Building and Construction Trades Council. “Continued and sustainable investment in New Jersey’s transportation infrastructure is the backbone of our economy and will pay dividends for generations to come.”