Smart Growth

New Jersey DOT Unveils $2.58 Billion Capital Plan

by Natalie Keith

With an eye toward smart growth and "fix-it-first" strategies, the New Jersey Department of Transportation unveiled a $2.58 billion capital plan for fiscal year 2005.

The plan, which became effective July 1, includes $1.4 billion for DOT projects and $1.2 billion for New Jersey Transit work.

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"This program will support jobs and encourage 'smart growth' development through targeted capital investments," said New Jersey Gov. James McGreevey. "Virtually half the funding will be provided for public transportation, while new highway expansion is limited to just 4 percent of spending."

Among key projects that are part of the smart growth initiative are the rehabilitation of Route 18 in New Brunswick, rebuilding of Route 21 in downtown Newark, preliminary design of a new pedestrian connection from the Performing Arts Center to the waterfront in Newark and improving access to Camden from Interstate 676.

Under the governor's "fix-it-first" approach, the DOT plans to repair and rehabilitate more than 15,000 lane mi. of state highway and 32,000 mi. of county and municipal roadways. Among initiatives that will be undertaken are:

• $370 million to repair and replace 71 bridges, including $12 million for construction of a new fixed-span Manasquan Bridge in Monmouth County and $34 million for a new Routes 1 & 9 Elizabeth River Bridge in Union County.
  
  
• $150 million for roadway preservation, targeting the worst roads first, including $7 million to rehabilitate I-295 to Route 1 in Mercer County.
  
  
• $235 million to ease congestion throughout the state, including $5.9 million for intersection safety improvements at Route 1 & 9 North Avenue in Elizabeth and $24.2 million to eliminate the Route 30 Berlin Circle.

New Jersey Transit funding will be used to preserve and upgrade its transportation system. Among investments are:

• $257 million for rail state-of-good repairs such as basic track, signal, bridge and yard improvements. Up to 13 mi. of track and more than 50,000 rail ties will be replaced.
  
  
• $16 million for bus and light-rail facility needs and replacement of 270 transit buses.
  
  
• $59 million for systemwide improvements, including $9 million for technology upgrades.
  
  
• $15 million to improve the on-board announcement system.
  
  
• $76 million for rail station improvements at Newark Broad Street Station, Ridgewood Station, Madison Station and Morristown Station. Funding will also be used for the Trenton Station Rehabilitation, construction of high-level platforms at South Amboy Rail Station and reconstruction of platforms at Metropark Station and Woodbridge Stations.
  
  
• $7.5 million to create 20,000 new Park & Ride spaces statewide.

"This budget continues our "back-to-basics" priorities and enables New Jersey Transit to begin to reverse the historic practice of transferring capital funds for operating expenses," said George Warrington, the agency's executive director.

Under the budget, funding for safety programs is increased. About $100 million is earmarked for engineering, education and enforcement initiatives designed to increase safety on highways and bridges. New safety programs include Safe Corridors, which implements improvements identified by safety impact teams in high-hazard corridors; the Local Safety program, which makes improvements to local roads prioritized by metropolitan planning organizations; and an experimental State Police expanded patrol program on roadways with high crash rates.

"I will not be satisfied until fatality rates on our roadways are zero, and the resources we are investing in the engineering, enforcement and education components of the Safety First program are paying dividends," said DOT commissioner Jack Lettiere.

Robert Briant Sr., CEO of the Utility & Transportation Contractors Association of New Jersey, said the budget must be analyzed carefully to determine the exact amount of funding available for new construction work. Because the budget contains funding for acquisition of right-of-ways and engineering, design and planning work, those costs must be stripped away to determine actual levels of funding for new work.

When these costs are taken out of the budget, there is $625 million in funding for state Department of Transportation work, of which $150 million is money given to municipalities to support local projects. There is $365 million for 27 projects started in previous years and continued under the current budget and $325 million for New Jersey Transit projects, according to an analysis done by the Utility & Transportation Contractors Association.

"People must not be fooled by the numbers," Briant said.

Richard Foreman, executive director of the Association of General Contractors of New Jersey, said the budget was similar to those of past years in that it maintains the status quo but does not include much long-term transportation and infrastructure planning for the state.

"The needs are huge in New Jersey," Foreman added.

Briant and Foreman cautioned against the reliance on debt to fund the capital program.

To fund the fiscal year 2005 program, the Transportation Trust Fund will need to increase $946 million in bonds. This action will increase the fund's annual debt service from $454 million in fiscal year 2004 to $557 million in fiscal year 2005, according to the Utility & Transportation Contractors Association of New Jersey.

"Pretty soon we won't have revenue for new construction," Briant said. "We need new sources of revenue in New Jersey."

Both suggested that raising the state gas tax may be a way to increase funding for transportation work.

"We have the second lowest gas tax of any state in the country," Foreman said. "You can't transportation needs with that."