Transportation Trust Fund FAQ
Q. What is the Transportation Trust Fund?
Created in 1984 under Governor Kean, the Transportation Trust Fund (TTF) is the pool of money that pays for all of New Jersey’s transportation construction projects. The Fund is overseen by an independent authority called the NJ Transportation Trust Fund Authority.
Q. How is it funded?
The TTF receives revenue through an annual appropriation by the state legislature. The equivalent of 10.5 cents of the gas tax, the petroleum products gross receipts tax (a fee imposed on gasoline retailers), and a portion of the sales tax are constitutionally dedicated – meaning the state constitution requires those monies be directed to the TTF. Revenue that is not constitutionally dedicated, such as the “good driver” registration surcharge, heavy truck fees, and contributions by the NJ Turnpike Authority and South Jersey Transportation Authority are often diverted to plug holes in the general state budget. This revenue diversion means that the trust fund must go further into debt, perpetuating the cycle of bonding.
The Transportation Trust Fund Authority also has a useful chart and explanation of revenues here.
Q. When does it run out of money?
Every cent of the TTF will go toward debt payments by June 30, 2011.
Q. What is “pay-as-you-go” and is it feasible?
The TTF was originally intended to function on a “Pay-as-you-go” system, meaning that projects would only be funded with existing revenue instead of debt. Over the past 15 years the state has continually increased debt and length of bond terms, slowly destabilizing this critical fund.In order to effectively fund transportation and reduce our reliance on debt, the state must generate and constitutionally dedicate new revenues to the TTF at a level high enough to meet New Jersey’s 21st-century needs and ambitions.
The current FY10 pay-as-you-go component represents only 4% of the fund.
Q. What are our options?
There are only a few options to get the TTF back on track, but a sustainable re-authorization of the TTF must include new and reliable sources of revenue. Click here for a more in-depth look at Move NJ Forward’s goals & objectives.
Q. What can I do?
Take the first step toward a sustainable transportation fund by visiting our action center to email your elected officials and sign-up for campaign updates! Make your voice heard by writing a letter to the editor, presenting before city council or county freeholders, or enlisting the support of organizations in your community.