New Jersey will halt all state-funded road construction on Oct. 4, sidelining work at about 100 sites, Transportation Department Commissioner James S. Simpson said.
The shutdown came in response to a move by Democratic lawmakers that delayed a $1.4 billion bond sale to replenish the state’s Transportation Trust Fund Authority, Governor Chris Christie and Simpson said today. State Treasurer Andrew Sidamon- Eristoff said Sept. 27 that the debt sale, originally set for last month, may occur by mid-October.
“This is a matter of major importance to everybody in the state of New Jersey,” Michael Drewniak, Christie’s spokesman, said in an interview. “It will involve thousands of jobs.”
The roadwork fund will run out of money for new projects next year as payments on more than $12 billion in bonds consume the entire $895 million paid into the fund annually, Trust Fund projections show. The bond sale calls for refinancing about $483 million in debt, giving the state more borrowing capacity. The Legislature’s Joint Budget Oversight Committee, controlled by Democrats, must sign off on the refinancing. The panel hasn’t done so.
Democratic Senator Paul Sarlo, co-chair of the committee, said last month that he would withhold consideration until Christie, a Republican, presents a long-term plan for replenishing the Trust Fund.
‘A Tough Blow’
About $1.7 billion in projects will be stopped under today’s order. Those include the Route 3 Passaic River crossing, the extension of the Hudson-Bergen light rail line in Bayonne and design work on 200 more projects, Simpson said in a statement.
“We’re in trouble,” said Robert Briant, chief executive officer of the 1,000-member Utility and Transportation Contractors Association and a member of the Trust Fund Authority board. “This is a tough blow to take when you have companies that are already struggling.”
Construction firms will be required to pay workers through Oct. 4 under union rules, and concrete pours and equipment deliveries will be disrupted, Briant said.
Sarlo and Assemblyman Louis Greenwald, also co-chair of the panel, didn’t immediately return calls seeking comment.
The state has the authority to issue $200 million to $300 million in debt to fund projects, David Rosen, a legislative analyst, said in a memo today to Sarlo.
That would cover only the amount the state has already advanced to the Trust Fund from its general budget accounts, Drewniak said in an e-mail today.
“There is only an estimated $100 million left to keep projects funded by the TTF,” Drewniak said. “The Trust Fund needs to pay back the general fund so that the state’s finances remain strong.”
To contact the editor responsible for this story: Terrence Dopp in Trenton, New Jersey, at tdopp@bloomberg.net.
To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net.
http://jodnet.blogspot.com
The shutdown came in response to a move by Democratic lawmakers that delayed a $1.4 billion bond sale to replenish the state’s Transportation Trust Fund Authority, Governor Chris Christie and Simpson said today. State Treasurer Andrew Sidamon- Eristoff said Sept. 27 that the debt sale, originally set for last month, may occur by mid-October.
“This is a matter of major importance to everybody in the state of New Jersey,” Michael Drewniak, Christie’s spokesman, said in an interview. “It will involve thousands of jobs.”
The roadwork fund will run out of money for new projects next year as payments on more than $12 billion in bonds consume the entire $895 million paid into the fund annually, Trust Fund projections show. The bond sale calls for refinancing about $483 million in debt, giving the state more borrowing capacity. The Legislature’s Joint Budget Oversight Committee, controlled by Democrats, must sign off on the refinancing. The panel hasn’t done so.
Democratic Senator Paul Sarlo, co-chair of the committee, said last month that he would withhold consideration until Christie, a Republican, presents a long-term plan for replenishing the Trust Fund.
‘A Tough Blow’
About $1.7 billion in projects will be stopped under today’s order. Those include the Route 3 Passaic River crossing, the extension of the Hudson-Bergen light rail line in Bayonne and design work on 200 more projects, Simpson said in a statement.
“We’re in trouble,” said Robert Briant, chief executive officer of the 1,000-member Utility and Transportation Contractors Association and a member of the Trust Fund Authority board. “This is a tough blow to take when you have companies that are already struggling.”
Construction firms will be required to pay workers through Oct. 4 under union rules, and concrete pours and equipment deliveries will be disrupted, Briant said.
Sarlo and Assemblyman Louis Greenwald, also co-chair of the panel, didn’t immediately return calls seeking comment.
The state has the authority to issue $200 million to $300 million in debt to fund projects, David Rosen, a legislative analyst, said in a memo today to Sarlo.
That would cover only the amount the state has already advanced to the Trust Fund from its general budget accounts, Drewniak said in an e-mail today.
“There is only an estimated $100 million left to keep projects funded by the TTF,” Drewniak said. “The Trust Fund needs to pay back the general fund so that the state’s finances remain strong.”
To contact the editor responsible for this story: Terrence Dopp in Trenton, New Jersey, at tdopp@bloomberg.net.
To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net.
http://jodnet.blogspot.com
0 التعليقات
Post a Comment