12/10/03-Gov. James McGreevey Dec. 9 rejected a panel’s recommendation that New Jersey hike its fuel tax by at least 12.5 cents per gallon to fund repairs and improvements to the state’s roads.
The decision also killed a proposal that would have used revenue from the fuel tax increase to eliminate tolls on the Garden State Parkway.
On Nov. 24, a blue-ribbon transportation commission appointed by the governor called for a fuel tax hike to upgrade the state’s highway system and meet other transportation needs. The panel also recommended raising the tax regularly to reflect inflation.
The diesel fuel tax now is 17.5 cents a gallon. The gas tax is 14.5 cents.
The governor’s decision came as Senate Republicans had pledged to vote against any increase in the current lame-duck session of the Legislature that ends in January.
The existing $3.75 billion fund for roadwork expires in June, putting the state in a time crunch to find more money. It is expected to run out of money in 2006.
McGreevey said in a statement he has ordered Transportation Commissioner Jack Lettiere to “go back through his budget, find savings, reduce costs, reduce bureaucracy and re-prioritize our spending on the most important safety and congestion projects.”
The governor didn’t completely close the door to a fuel tax increase. “At some time it may become absolutely necessary to revisit this issue, but that time is not today,” he said.

11/25/03-A transportation commission appointed by Gov. James McGreevey recommended Nov. 24 that New Jersey hike its fuel tax by at least 12.5 cents per gallon to fund repairs and improvements to the state’s roads.
The Blue Ribbon Commission also recommended raising the tax regularly to reflect inflation.
McGreevey convened the panel 10 months ago to study how to permanently finance the state Transportation Trust Fund and to make recommendations to the Legislature.
The existing $3.75 billion fund for roadwork expires in June, putting the state in a time crunch to find more money.
Although the governor did not immediately endorse the increase, he said in a statement, “It is clear that we need to act quickly to replenish transportation funding.”
The diesel fuel tax now is 17.5 cents a gallon. The gas tax is 14.5 cents.
Legislative leaders have said they are open to discussing the tax increase before the session ends in January. They also said they would tread carefully before endorsing a call for the kind of tax increase that might incite voters.

11/21/03-A panel appointed by Gov. James McGreevey likely will request an increase in New Jersey’s fuel tax to fund repairs and improvements to the state’s roads, according to published reports.
“ Most likely there will be a recommendation,” McGreevey said on Millennium Radio. “I don’t know the specific amount.”
The governor, however, refused to reveal whether he would support a tax hike. He also declined to say if he thought the tax should be raised to fund road and bridge upgrades.
Some estimate the tax increase would range from 5 to15 cents per gallon. The diesel fuel tax now is 17.5 cents a gallon. The gas tax is 10.5 cents.
The existing $3.75 billion fund for roadwork expires in June, putting the state in a time crunch to find more money.
McGreevey has said he will push to find a way to completely finance the state’s Transportation Trust Fund.
In January, the governor commissioned a panel to examine the state road system and the funds needed to maintain it. That report is expected to be complete in several weeks.
Legislative leaders have said they are open to discussing the fuel tax increase before the session ends in January.