New Jersey officials estimate that Gov. Jon Corzine’s proposal to raise New Jersey Turnpike tolls by 50% could spark traffic diversion of roughly 10%, yet ratings analysts say the transportation system can absorb that drop off.

The governor proposes increasing tolls to back a potential $32.6 billion to $37.6 billion bond transaction to help New Jersey pay down $17.45 billion to $22.45 billion of state-backed debt and another $5.7 billion of New Jersey Turnpike Authority and South Jersey Transportation Authority bonds. The massive sale, which officials would sell in increments, could enter the market this year as the administration plans to issue the debt six to nine months if and when Corzine’s debt restructuring plan passes the Legislature.

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