N.J. Officials Weighing 12 Applications to Evaluate Corzine's Debt Plan

Legislative officials in New Jersey are reviewing 12 applications for financial advisory and tax consultant services to evaluate Gov. Jon Corzine's debt restructuring plan, which involves the state selling up to $38 billion of debt backed by future toll hikes.

The Office of Legislative Services Monday received five responses for financial consultant and seven proposals for tax adviser after the department released a request for offers on Feb. 11. NW Financial Group, Scott Balice Strategies LLC, Lazard Freres & Co., Infrastructure Management Group Inc., and thePublic Private Strategy Group applied for the financial adviser position and Katten Muchin Rosenman LLP, Sidley Austin LLP, Bryan Cave LLP, Patton Boggs LLP, Foley & Lardner LLP, Cozen O'Connor, and Fulbright & Jaworski LLP submitted applications to review the tax-exempt status of Corzine's plan. Legislative leaders from the Senate and the General Assembly will review the candidates.

After the governor in early January released his debt restructuring plan, lawmakers from both political parties in the Senate and the General Assembly sought to begin their own analysis of Corzine's strategy to pay down half of New Jersey's $32 billion of outstanding debt and finance transportation infrastructure for 75 years. That plan includes four 50% toll hikes from 2010 through 2022 that would secure nearly $38 billion of long-term debt.

Support for Corzine's plan has waned over the past few weeks as critics say the proposal forces toll road users to be the sole payer of state-wide debt. Sen. Raymond Lesniak, D-Union, said that based on his discussions with fellow lawmakers, the New Jersey Turnpike Authority could increase tolls by 45% by the end of the year and the Legislature will pass a measure to address state debt and infrastructure funding.

"By the end of the year I expect that the Turnpike Authority will conduct public hearings and will have a toll increase to pay for the necessary road improvements and it's been estimated that cost is 45%," Lesniak said. "I also think by the end of the year we'll have passed a budget with almost $3 billion of cuts in it and that the rest of our infrastructure needs, non-toll road needs, will be paid by a modest gas tax increase that's phased in and that there will be some form of a debt reduction implemented, but I'm not sure what form that will take right now."

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