When lawmakers consider raising the state gas tax later this year, the legislation should include automatic annual increases to the tax that reflect inflation, Democratic Assemblyman John Burzichelli told a group of New Jersey Chamber of Commerce members at a roundtable breakfast in East Windsor on May 27.
The breakfast, which also featured Republican Assemblyman Anthony M. Bucco, was designed to discuss the state budget and the New Jersey economy.
"If a gas tax is going to move, it has to move with (annual) cost of living adjustments so this (issue) doesn't come to us again," Burzichelli said. He noted that New Jersey's legislative body has for years disregarded the need for a gas tax increase.
The Legislature is widely expected to consider a bill to raise the per-gallon gas tax after November's Assembly elections and before the end of the calendar year - a period known as the lame duck session.
Revenue from the gas tax is intended for the state's Transportation Trust Fund (TTF), which funds projects to maintain the state's highways, bridges and mass transportation. The Trust Fund, a hot topic in Trenton, is on life support, relying on borrowed money while lawmakers on both sides of the aisle have said it is imperative to replenish the fund.
"We have to do something and I'm prepared to support whatever keeps our roads and bridges going," Burzichelli said.
Bucco agreed that the Transportation Trust Fund needs to be replenished but he didn't commit to annual increases to the gas tax.
Bucco stressed that New Jersey must emerge from its fiscal problems - which includes a massive pension deficit - by growing the economy to increase state revenue. "The economy is what is going to bring New Jersey out of the condition it is in," said Bucco, who defended tax credits for companies that expand and create jobs in the state.
"We can't solve the economy on tax credits alone," Bucco said. "We have to make New Jersey more affordable. But if we become less competitive, our budget problems will get worse. We have to send a message to business leaders that we are here to help, not hinder."
Burzichelli backed that sentiment. He noted that the state is on pace this year to exceed revenue projections by $200 million or more, a sign that business is on the rise. "That reminds us that the best way to solve the budget is to grow the economy," Burzichelli said.
But Burzichelli cautioned that the additional $200 million in revenue was going to be "swallowed" by the state's mandated payment to the pension fund, another issue both Assemblymen said required further discussion with Gov. Christie and the unions representing government workers.
A special thank you to Archer & Greiner for sponsoring the event.
For photos from the event, click on an image below:
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