Dear Mayor:

Yesterday, Governor Corzine signed into law A-2813/S-1470, which would replenish the 22-year old Transportation Trust Fund and increase Local Aid funding (for municipal and county roads and bridges) from $150 million, per year, to $175 million. And provide resources for critical highway and transit repairs and capacity expansion projects throughout the next five years.

The legislation, which was sponsored by Assemblymen John S. Wisniewski, Vincent Prieto, and Brian P. Stack and by Senators Raymond J. Lesniak and Joseph V. Doria, will require greater accountability for the fiscal management of the fund. Reforms include freezing the level of TTF funds used for capital maintenance projects and establishing an independent policy oversight board that will ensure compliance with strict guidelines for capital expenditures.

The legislation creates a capital program of $1.6 billion annually over five years that advances transportation projects and supports 100,000 jobs. Revenue sources for the program include the restructuring of approximately $1.8 billion of the State's existing transportation bonds.

Under the new law, additional net revenue enhancements also will come from TTF reforms including dedicating the final 1.5 cents of the existing 10.5-cent gas tax, which historically was diverted to the general fund. That action alone will generate $78 million annually. Another $12 million will be gained by resuming dedication to the TTF of a portion of toll road revenue.

We commend the work of Plainsboro Township Mayor and League Immediate Past President Peter A. Cantu, who serves as Chairman of our TTF Reauthorization and Reform Committee, as well as all of you who called, wrote and passed resolutions in support of this vital public policy.