Senator Steve Oroho (R-24), a member of the Senate Budget and Appropriations Committee, raised serious concerns regarding Governor Corzine’s toll hike plan following a hearing held yesterday by the committee to discuss the little information that has been released by the Administration regarding the plan, which would be the largest issuance of debt in our state’s history.

“Governor Corzine still has not released many details regarding his toll hike scheme and each new revelation made by those in the Governor’s inner-circle seem to further confirm what we have long believed,” said Oroho.  “The Corzine toll hike plan is so hugely expensive that it will require borrowing just to repay the initial $40 billion loan.”

Although the Governor’s road tax plan would require the immediate issuance of nearly $40 billion worth of bonds, the revenue generated by the toll roads would not be sufficient to repay the interest on the borrowed money for many years to come.

“Since Governor Corzine’s plan would delay toll hikes and the collection of increased toll revenue until after the next gubernatorial election, he will need to borrow yet again to begin repaying the $40 billion loan,” said Oroho.  “He wants to repay the interest on his borrowing with more borrowing.  This is a fiscal shell game that is being played at taxpayers’ expense.”

Members of the Corzine Administration noted that even after a number of 50% toll hikes have been instituted, the Public Benefits Corporation (PBC) proposed by the Governor still would not generate enough revenue to repay the massive loan. This revenue gap would again require additional borrowing by the PBC, at additional expense, to cover the difference between the payments due on the original bonds and the PBC’s ability to repay from toll revenue.

“This scheme, to borrow to repay past borrowing, and then to borrow in the future to repay new borrowing, does little more than add to the cost of everyday living in New Jersey,” added Oroho.  “It’s time for Governor Corzine to do what the citizens of New Jersey have been calling for: end the perpetual cycle of borrowing and address the overspending that is the real problem in New Jersey.”