By Briana Vannozzi
Correspondent
Most were expecting more of the same at today’s Senate budget transportation hearing. But perhaps heeding the governor’s recent comments on funding the ill-fated Transportation Trust Fund: “The Democrats thus far have put forward no plan and all they do is sit at budget hearings every day and say I should do it.”
Budget Chairman Paul Sarlo offered a fix. One, he says, is the most comprehensive to date.
“We believe a $2 billion Transportation Trust Fund is needed and it can’t be a four-year plan or a three-year plan. It’s got to be a dedicated source of revenue, multi-year plan,” Sarlo said.
The plan has four main components: a five-year phase out of the estate tax (New Jersey’s threshold is an estate worth $675,000), lowering taxes on retirement income, creating a charitable deduction off state income taxes with a cap.
“It’s three tax reductions in conjunction with an investment, a safe investment in our infrastructure,” Sarlo said.
That’s budget speak for a gas tax. The $2 billion a year would come primarily from increasing prices either at the pump or the refineries.
“I don’t believe we should be set in stone on all the parameters of each individual piece. I’m open for discussion with our Assembly counterparts. As I said earlier, I’m glad to see that Speaker Prieto opened the door for an estate tax in conjunction with the Transportation Trust Fund. I’ve always maintained that, it needs to be done in conjunction. None of these pieces should be done individually,” Sarlo said.
“But it has to be tax fairness and when we talk tax fairness it’s not taking something that is for the upper echelon, it’s something that’s going to help everybody,” Assembly Speaker Vincent Prieto said.
That was Prieto yesterday at a “tax fairness” press conference. The question now is, will it fly?
“What’s your thoughts on what I just laid out?” Sarlo asked.
“If the Legislature is going to come up with a plan, or if you have a plan in place, the governor is anxiously awaiting receipt of that plan,” said Rich Hammer.
“I know some of the transportation advocates feel that it has to be $2 billion. I would love to do $2 billion if we could afford to do $2 billion and I’m not so sure we can,” said Sen. Jennifer Beck.
Republican Beck put forward one of the only other plans, with no gas tax, using revenue sources and borrowing to generate $1.6 billion a year.
“My concern with the gas tax is it is the most regressive tax you can impose on our citizens,” Beck said.
Transportation officials offered no insight, but echoed the problem.
“There could be no new projects let or publicly bid by the Department of Transportation after July 1 if the Transportation Trust Fund is not renewed is that correct?” asked Sarlo.
“There will likely be no trust fund-supported projects that would proceed and move out, correct,” Hammer said.
Speaker Prieto’s office would only say that this is the same framework he’s been proposing for over a year, but he’s open to discussions. Democrats hope to get this moving to meet that June 30 deadline.