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Merkt: It's Time to Burst Corzine's Balloon
Generations to Come Will Be Stuck Footing Bill for Governor’s Decision to Defer Payments on Transportation Bonds
Likening Gov. Jon Corzine to a furniture store salesman hawking a sales pitch of “no payments for the next 18 months,” Assemblyman Richard Merkt today called the governor’s plan to defer payments on $750 million in transportation bonds until 2023 a “fiscal landmine for future generations.”
“If this is the best the Wall Street wizard can offer New Jersey taxpayers, it’s no wonder President-elect Obama hasn’t hired Governor Corzine,” stated Merkt, R-Morris, referring to the fact that Corzine’s name is no longer on the short list for U.S. Treasurer in the Obama Administration.
“The governor’s latest borrowing plan once again shows how desperate Mr. Corzine is to spend taxpayer money without regard for the consequences. His total lack of regard for future generations who will be stuck footing this bill is appalling and irresponsible.”
The Asbury Park Press reported that the Corzine Administration was putting $750 million in transportation bonds on the market Wednesday, deferring payment on principal until 2023. The Transportation Trust Fund Authority also has the option to delay payment on interest on $250 million of the debt until 2023.“This will be a balloon obligation for years,” said Merkt.
“It’s ‘buy now, pay later’ on steroids! Well, it’s time to burst Corzine’s balloon. Our families and businesses have had enough of these Wall Street schemes and gimmicks. First the governor wanted to sell our toll roads. When that failed, he found a backdoor way to hike tolls. Now he wants to leave the bill for transportation projects to our kids and grandchildren.
“Do we need money for roadway, bridge and mass transit projects?” he continued. “Of course we do, but using a credit card isn’t the answer. Gov. Corzine’s latest borrowing plan is exactly the type of costly ‘funding’ plan that got us into this fiscal trouble in the first place.”
Merkt noted that Assembly Republicans earlier this year offered the Corzine Administration an alternative for funding transportation without the need for higher taxes, increased tolls or additional borrowing. Republicans proposed a constitutional amendment to dedicate at least $500 million per year in Motor Vehicle Commission fee collections to transportation projects, only $200 million of which can be used to pay debt service on bonds. The rest will go directly to paying for transportation projects as the money is needed. The proposed amendment contains a provision that specifically prohibits the Legislature from using the funds for anything but transportation improvements. Corzine and the Democrats immediately rejected the proposal out of hand.
Likening Gov. Jon Corzine to a furniture store salesman hawking a sales pitch of “no payments for the next 18 months,” Assemblyman Richard Merkt today called the governor’s plan to defer payments on $750 million in transportation bonds until 2023 a “fiscal landmine for future generations.”
“If this is the best the Wall Street wizard can offer New Jersey taxpayers, it’s no wonder President-elect Obama hasn’t hired Governor Corzine,” stated Merkt, R-Morris, referring to the fact that Corzine’s name is no longer on the short list for U.S. Treasurer in the Obama Administration.
“The governor’s latest borrowing plan once again shows how desperate Mr. Corzine is to spend taxpayer money without regard for the consequences. His total lack of regard for future generations who will be stuck footing this bill is appalling and irresponsible.”
The Asbury Park Press reported that the Corzine Administration was putting $750 million in transportation bonds on the market Wednesday, deferring payment on principal until 2023. The Transportation Trust Fund Authority also has the option to delay payment on interest on $250 million of the debt until 2023.“This will be a balloon obligation for years,” said Merkt.
“It’s ‘buy now, pay later’ on steroids! Well, it’s time to burst Corzine’s balloon. Our families and businesses have had enough of these Wall Street schemes and gimmicks. First the governor wanted to sell our toll roads. When that failed, he found a backdoor way to hike tolls. Now he wants to leave the bill for transportation projects to our kids and grandchildren.
“Do we need money for roadway, bridge and mass transit projects?” he continued. “Of course we do, but using a credit card isn’t the answer. Gov. Corzine’s latest borrowing plan is exactly the type of costly ‘funding’ plan that got us into this fiscal trouble in the first place.”
Merkt noted that Assembly Republicans earlier this year offered the Corzine Administration an alternative for funding transportation without the need for higher taxes, increased tolls or additional borrowing. Republicans proposed a constitutional amendment to dedicate at least $500 million per year in Motor Vehicle Commission fee collections to transportation projects, only $200 million of which can be used to pay debt service on bonds. The rest will go directly to paying for transportation projects as the money is needed. The proposed amendment contains a provision that specifically prohibits the Legislature from using the funds for anything but transportation improvements. Corzine and the Democrats immediately rejected the proposal out of hand.
posted by Trentonian at
4:11 PM
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