Wednesday, July 4, 2007

On the Right Track?

Although he has not yet formulated a proposal regarding the State’s toll roads, Governor Corzine’s recent announcement that he would not sell or lease them to a for-profit company or a foreign operator is a wise one. Residents of New Jersey generally opposed the sale or lease of the State’s toll roads and the Governor’s initial plans to study the issue raised Republican opposition. Given the beating Republicans have taken at the polls in recent elections in New Jersey, that Party views the sale or lease of the State’s toll roads as an issue that could resonate with voters and cause them to seriously consider voting for change in Trenton this November. Corzine’s announcement helps to blunt the impact of the Republican’s use of this wedge issue. If the sale or lease of our toll roads to a for-profit corporation or foreign operation were to take place, what would it mean to our residents? What problems could arise?


First, putting aside the Legislature’s proclivity to spend even when the resources do not exist, would the Legislature institute adequate protections for our residents to ensure that the roads were well-maintained and that the tolls would not be unreasonably increased? Since the State government has difficulty maintaining New Jersey’s toll roads now and the roads are currently under its control, is there any reason to believe they would be well-maintained if owned by a for-profit corporation or a foreign operator? Furthermore, since New Jersey has not been shy about boosting the costs of tolls, what would make anyone think that a for-profit corporation or foreign operator would be rigidly limited by that same government?


The lease or sale of New Jersey's toll roads to a for-profit corporation or foreign operator would raise serious concerns regarding consumer protection. The possibility of additional billions of dollars in the State's budget might not find its way to the intended coffer. The Governor's decision to refuse to sell or lease the roads to a for-profit corporation or a foreign operator is the right one at this time. Hopefully, his rejection of such a sale or lease is genuine and not an incumbent protection plan meant to assuage voters as we head towards the November election.



Michael M. Shapiro, founder of ShapTalk.com, is an attorney who resides in New Providence, New Jersey. He currently serves as the Chairman of the New Providence Democratic Party and as Editor of The Alternative Press Contact Mike at mike@shaptalk.com