DALLAS -- New Jersey Gov. Chris Christie has ordered state officials to take money from the general fund to restart essential transportation projects stalled over a funding dispute between the Republican governor and the Democratic-controlled legislature.
The state's transportation trust fund is "days away from exhausting all of its available funds," Christie said in an executive order on Wednesday.
Wednesday's executive order directs the state treasurer to replenish the transportation fund with available general funds for projects "determined to be absolutely essential for the protection of the health, safety, and welfare of the people of the state of New Jersey, or that are required to ensure the receipt of federal funding."
The treasurer, state budget director, transportation commissioner, and executive director of the New Jersey Transit Corp. will determine which projects should be supported by the general fund.
The emergency funding will last "until the [state] Senate and the General Assembly pass a Transportation Trust Fund Authority funding bill acceptable to all parties," he said.
"Until they do so, the state must use money from the general fund for emergency road, bridge, and mass transportation work," Christie said.
Christie ordered the shutdown of $3.5 billion of road, rail, and bridge projects in late June to ration the remaining balance in the transportation fund until lawmakers agree on a new transportation funding measure.
The governor supports a funding proposal adopted by the General Assembly that would levy a new sales tax on gasoline in addition to the existing volume-based gasoline tax of 13.5 cents per gallon. The proposal would add 23 cents to the state tax at current fuel prices.
The new sales tax would bring in $1.2 billion per year of additional revenue.
New Jersey's gasoline tax, which is the second lowest in the nation, has not been increased since 1989.
Christie is a Republican. Democrats hold majorities in General Assembly and the Senate but not large enough to overcome a Christie veto.
The General Assembly approved the tax package in a late-night session, but Senate President Stephen Sweeney refused to allow the Senate to vote on the measure, which included a reduction in the state sales tax rate to 6% from the current 7%.
The sales tax cut in the General Assembly's proposal would significantly reduce general fund revenues, Sweeney said.
"We couldn't afford it," he said.
The nonpartisan Office of Legislative Services said the sales tax cut would cost the state $1.2 billion in lost revenues after the first year and more than $1.7 billion per year by 2022.
The Senate had earlier approved a funding plan that compensated for the increase in the gasoline tax with a phrased elimination of the estate tax and a $500 per year income tax deduction for motorists who earn less than $100,000 per year.
The Senate's highway plan would authorize up to $20 billion of transportation spending over 10 years, including $15 billion of new debt.
The plan approved by the General Assembly and supported by Christie sets transportation spending at $16 billion over eight years.
The Senate proposal is "a superior plan that includes responsible tax cuts the state can afford," Sweeney said.
The highway funding impasse could last until after the fall elections, he said.
"The thing that concerns me is you're losing millions of dollars every week now in wages, and contractors are shutting down," Sweeney said.
Assembly Speaker Vincent Prieto, who said he would support either funding plan, said Christie and lawmakers should get together to end the gridlock.
"It's time for everyone to sit together in the same room and stay there until we resolve this crisis," he said.
