GOP senators: A gas tax hike isn’t needed to fund transportation

New Jersey doesn't need to hike its gas tax to replenish the nearly bankrupt Transportation Trust Fund, two Republicans said Monday.

Instead, said state Sen. Jennifer Beck (R-Red Bank) said at a press conference with state Sen. Mike Doherty (R-Washington), New Jersey should take a multi-pronged approach — using expected revenue growth, a pay-as-you-go formula, cost-cutting, borrowing, expiring bond savings, increased motor vehicle fines and more.

“We can implement a seven-year, $1.6 billion TTF program with no new gas tax while funding our fixed-cost growth and our pension obligations,” Beck said. “Over that seven years, $11.2 billion in projects will advance.”

The plan includes:

• New money from an estimated 3.34 percent yearly revenue growth, to be compounded annually
• Savings from merging transportation agencies
• New funding from the Clean Energy Fund
• New funding from expiring Motor Vehicles Commission bonds
• Increased MVC fines
• $5.4 billion in borrowing
• Paying a fixed amount into the fund annually

“I will stand firmly opposed to raising the gas tax on my residents. I ask for the citizens of this state to join me in their opposition. This is a very, very difficult tax for them to absorb and it’s not necessary,” Beck said.

On Monday, the senators launched an online petition at senatenj.com/nogastax to give New Jersey residents an opportunity to make their voices heard for alternatives against an increase in the gas tax.

A spokesman for the Assembly Democratic Office declined to comment on the proposal. An official with the Senate Democratic Office did not immediately respond.

While Beck conducted most of the plan explanation, Doherty did say that the state cannot simply pour money into the TTF without also making sure the money was being spent wisely.

“There’s a mad rush to say, ‘Okay, we need to more money to the TTF by increasing the gas tax,' but I think we need to both sides of the equation,” Doherty said. “We need to look at how we’re spending this money and spend it more carefully.”

The TTF is on pace to run out of money at midnight, June 30, 2016.

Kevin McArdle has covered the State House for New Jersey 101.5 news since 2002. Contact him at kevin.mcardle@townsquaremedia.com. Follow him on twitter at @kevinmcardle1.