Gov. Chris Christie (R) announced on Sept. 30 that New Jersey’s Transportation Trust Fund (TTF) will be reauthorized for $2 billion per year for the next eight years, the largest and longest reauthorization in the state’s history. The plan will be funded with a 23 cents-per-gallon state gas tax increase, and will be accompanied by several tax cuts, including gradually eliminating the state estate tax and increasing the earned income tax credit from 30 to 35 percent.
All non-essential, state-funded transportation work has been frozen since July 8 while state leaders negotiated a way to provide new revenue for the depleted TTF. Estimates from Forward NJ found that the crisis cost the state 4,200 in lost jobs, $41 million in work stoppage costs, and $9 million in weekly lost sales and wages.
Once legislation is introduced and approved, New Jersey will be the 17th state to increase taxes on motor fuel for transportation funding since 2013.