AFP is trying to confuse property taxpayers
Like the Reason Foundation, Americans for Prosperity (AFP) was founded by the owners of Koch Industries, a $115 billion global corporation that operates in 59 countries around the world. Its core business is petroleum and it zealously protects that business, as one would expect it to.
AFP likes to portray itself as a "membership" organization, but unlike other membership organizations here in America, AFP's members don't get to vote on who leads its national and state organizations. Those decisions are made for them by individuals closely connected with the owners of Koch Industries. That means that AFP is essentially a lobby group, so we perfectly understand why it would rather see property taxes increased on every homeowner in New Jersey instead of a petroleum tax increase on products produced by Koch Industries.
Today, AFP sent out a very emotional press release about the $341 million boondoggle to repair Route 35. We all agree that construction projects are targets for political corruption, inefficiencies, and over-regulation in New Jersey. But we also know -- as AFP does -- that raising these issues does not solve the problem of how to fund road and bridge maintenance and repairs now that the Transportation Trust Fund (TTF) is out of money.
Unlike many liberals, conservatives do not respond to mere emotional appeals like AFP's press release today. We prefer to listen to a rational argument that appeals to our intellect.
Yes, something needs to be done to address the political corruption, inefficiencies, and over-regulation of construction projects in New Jersey. As a start, AFP might join with those of us who are trying to undo the gubernatorial order that killed the state's "fast-track" regulatory program that would speed up construction and save taxpayers' millions each year. Now where is AFP on this cost-saving reform? We would like to know.
For two years now a solar construction scandal has rocked northwest New Jersey (where AFP is based and where the group's leadership lives) with all the political corruption and boondoggle AFP could ask for -- but not a peep about it has come from AFP. It is as if they were asleep, or perhaps the leaders of AFP don't read their local newspapers? Of course, this construction project doesn't concern a product near and dear to the hearts of Koch Industries.
Instead of making specific suggestions on how we can address the political corruption, inefficiencies, and over-regulation of construction projects in New Jersey, AFP has only one suggestion -- DON'T RAISE TAXES ON PETROLEUM PRODUCTS! Now why would that be?
Here's what AFP isn't telling you.
The Transportation Trust Fund (TTF) collects money from the gas tax and then uses that money to maintain and repair state roads and bridges. The TTF also sends money to local governments (counties and municipalities) so that they can afford to maintain and repair the roads and bridges that they own.
The TTF is nearly bankrupt. There will be no money for the maintenance and repair of the roads and bridges owned by the state AND there will be no money to send to local governments to maintain and repair their roads and bridges.
It's happening already.
Last month the town of Montville, in Morris County, went to the TTF for funding to repair a road. It was turned down. Note the shock of township leaders:
Due to the New Jersey Transportation Fund’s unfunded state, Canning said he saw something he had never seen in 25 years of working in government: a grant denial.
“There were 641 applications to the NJ Department of Transportation requesting more than $253 million of the $78.75 million available in municipal aide grant funds,” said Canning, “and they did not approve our Brittany Road project, therefore, all $650,000 will have to be self-funded.”
What that "will have to be self-funded" means is that the property taxpayers of Montville will be stuck paying for those repairs.
As more and more local governments get turned down, their leaders will have a decision to make: Either they raise property taxes on every homeowner and business to pay for the maintenance and repair of roads and bridges; or they allow those roads and bridges to fall into disrepair, and become unsafe.
If local governments take the second option and allow roads and bridges to become unsafe, they will be left with just two choices: Close those roads and bridges as they become unsafe, or accept that there will be lawsuits for negligence when people are injured or killed on those unsafe roads and bridges. Of course, the legal bills and settlements for such lawsuits will also result in the need to raise property taxes -- so the taxpayer will lose either way.
Don't think it will happen? Well, it already has.
It took 145 victims, 22 children, 13 deaths, and one bridge collapse for the Legislature in Minnesota to finally raise the gas tax to fund road and bridge maintenance and repairs. Of course, at that point they also had to pay out many millions more in hospital care, rehabilitation, on-going health care, and negligence settlements -- as well as totally reconstructing a bridge.
Do we really want to wait until we are burying children?
In the real world, we all know that when the money runs out, and the workers don't get paid, the repairs will stop.
And then there's this to consider: Right now, New Jersey taxpayers subsidize out-of-state drivers who use our roads. If we do nothing, we will end up paying $11 billion over the next 25 years to subsidize out-of-state drivers.
Approximately one-third of gas tax revenues in New Jersey come from out-of-state drivers. All property taxes come from the people of New Jersey. So which do you think is the best way to pay for improvements to roads and bridges, an increase in the gas tax or an increase in property taxes?
Let us know how you feel. Your thoughts and ideas are always welcome.
Reader Comments (13)
Bankrupt the bankrupt TTF and start over. Why should anyone have to pay more to the slush fund of miss appropriated funds. 11 billon on top of the 30 billon in the next 25 years to allow out of state workers, vacationers and passer by travelers the privilege to feed our economy which creates more jobs, spending and taxes for the state of NJ. If this wonderful plan of subsidizing road expenses by collecting 1/3 of the 40 billon 30 year bonds from out of state, Why not just put up toll cameras and charge every out of state car 4 dollars for the privilege to spend money and feed our economy...And instead or welcome to NJ THE GARDEN STATE, welcome to one of the highest taxed states in the union, we would like to try and keep our residents so now it's your turn, please have 4 dollars ready to pay the grumpy toll collector who's making 75,000 per year or you can drive thru our camera toll by license plate which only cost 8 times the nation average to install. This is ment to be ridiculous, but it's not far from the truth. The only feasible plan is to bankrupt the system, like AC, and create a real budget, real bids, and get real work done. Or just tax everyone out of the state, because when is the last time you heard some say they were going to retire in nj? And the reason we have so many out of state cars on our roads is because it's a great place to live and work but they have been taxed out already.
The problem here is that the funds were not returned, not that the cupboard is bare. Return the funds.
The transportation fund is depleted because it has continually been raided by the very State politicians that now promise to keep property taxes low if they... raise... a most regressive tax, the gas tax???
C'mon. Call the police, get the stolen funds returned first. Then teach those that abscond with public funds and good will to lock-up dedicated funds. Then we talk.
Here's a better solution than Senator Oroho's and it doesn't cost taxpayers. Reverse the nonsense at Port Authority. Transfer the $500M/yr subsidy for the perennially losing PATH trains to the Transportation Fund. Reverse the PA bloat elsewhere - and sell off buildings - re-fund transportation which is supposed to be what "Port Authority" is about (not real estate development). There's $1B/yr for roads - easily for some years to come while the legislature fixes the general fund spending causing the transportation fund raid in the first place.
And since NJ Govt is so good at raiding, let's raid unnecessary education costs to fix our roads AND TO HELP THE TAXPAYER. End the absurd - Hoboken's Abbott District subsidy. Review all other Abbott districts. Why is Sussex County subsidizing fat cat and other districts that no longer deserve subsidization? Transfer these funds to transportation funding.
Bankrupt the fund and you de-civilize the state. Remember what happened to Zaire when its transportation infrastructure broke down. Are you looking to turn the state into a scene out of Mad Max?
Harvey, get real. The money isn't coming back. No judge is going to make anyone give it back. Get serious and live in the real world. The fund is broke NOW. Your choices are;
(1) Unsafe roads, injuries, deaths, high insurance rates, lawsuits, settlements against government, higher property taxes to pay those settlements;
(2) Closed roads and bridges as they become unsafe and the end of civilization as we enjoy it today;
(3) Higher property taxes;
(4) Higher gas taxes.
Choose.
Wow, an adult should talk to Joe Ski, he also feels personally responsible for not paying enough in taxes... You should try your threats to your mortgage company.
1) I spent my money on booze and gambling, so you need to contact my employer for more money.
2) since I've wasted my money and neglected property you can be sure someone's gonna get hurt sue my insurance company causing my rates to go up so I won't pay you.
3) I have since continued to buy more houses which I can't afford or pay for so good luck getting you money
4) real world :foreclosure, repo notice, turn over the keys because we're going to find a reasonable buyer.
5) stop with the threats, end of civilization, can't go to the store for food, I guess we just have to close up shop and all move cause the state is closed.
John B should talk to his hand. Crybaby is not an option.
Remember the good ole days when Lonegan ran AFP in between campaigns? He ran everything past Liberal Democrat Nick Sacco but that was good for Lonegan because he got a taste. AFP was like the mafia then and a corrupt enterprise. Now it is run by the graduate of an ultra-leftist feminist camp called WAND. You people who follow AFP dictates are fucked up.
Your right adult, we can either pay more money in taxes, more money in taxes, more money in taxes, or raise the gas tax which 33% of people that where taxed out the state but still work here would pay and help us out. You are a freaking genius!!! You should work for the goverment or the mob, with your 4 options, just brilliant! Good day to you!
Don't be such a toad Johnny B Good! You make a lot of assumptions there. Nobody passes through Jersey? Nobody uses an airport? Did you know that we don't tax most airport fuel? Yeah, our tax money (mine and yours) subsidizes that. We subsidize out of state drivers to the tune of $11 billion over the next 25 years. Is that a good tune for you? See, the more you learn the more you know and you need a lot of learning Johnny.
Your right again. 11 billon on top of the 30 billon of misspent money. Your right that's not my tune. You should propose an extra tax for airport fuel, why would we want to be an attractive state to visit when the potential taxes are endless. And your right again I realize not everyone traveling though the state is a commuter. Tourism is 40 billon a year in NJ based on 7% sales tax for goods and service that's 2.8 billon that goes where? And that's just tourism. So lets see avg property tax is only 8,000, a bargain. I did learn another thing, 34,000,000,000 collected we can't seem to set aside 1 billion to keep a civilized state with safe roads, and there would be no need to threaten the people with tragic bridge collapses, deaths, law suits, and higher taxes. My lesson of the day, if nobody thought like you the TTF wouldn't be broke. It would have been managed properly the past 20 years. So thank you for your wisdom, I guess I'll vote for higher gas tax....but I'll clue your all knowingness in, are property taxes will still go up. Also the 15 dollar minimum wage will be the next thing that'll cause job losses and that dollar menu at McDonald's to be the 2.50 menu, right up your alley, cause guess what, when cost go up so do taxes. Your a freaking idiot. Someone else help me out here? This guy is the reason AC is broke and we can't pay for our roads.
Feel free to correct my spelling and grammar. I never claimed to know everything. The other day for the first time in my middle age life figured I throw out there the threats of disaster and no more money, we need more, yeah we all do but but come on more taxes? I know enough, system broke, hense the headlines. At first joe and now adult hell bent on a gas tax was almost fun at first. I couldn't believe 2 people, I'm pretty sure the same person, claiming how the tax is needed and will save lives, law suits, property tax increases gas tax a god send. Blows me away. It's going to go to the failed, broke system. You can be arrogant to Harvey, who is obviously much more intelligent then you. Than call me a cry baby and how much I need to learn because I twist what you say use the same context to the real world and I'm the one that needs to learn. You really are right, I try to learn every day. I love my county but never really interested in politics much. Guess I'm the stupid one that knows nothing. More taxes fix everything, don't know what I was thinking doubting you logic reasoning we really do need more tax increases. Your right I'll learn I'm going to move to Greece at least they socialized medicine included in there 48% income tax, oh wait we almost have socialized medicine, just costs use a fortune, and with your pro tax attitude we'll be at their tax rate,in time, it will take a while. oh well I guess I'll just stay here. Hanks for creating a business friendly not enough tax state. Keep your ideas coming, or wait I think I should have been the one telling you to talk to the hand, cry baby, you'll get your chance to give more taxes, don't worry, no need stress about it and take it personal.
John B, didn't anyone ever tell you that bitching and moaning isn't a solution. You can bitch and moan like Harvey until the cows come home and you don't provide a realistic solution for jack dick.
Look, I hate war. I think that only Congress can declare war. The Constitution says so. But I guess I'm out of luck because the government does what it wants and the courts go along with it. We had to go and that was that. What do I do, start a revolution? Blow something up? Bitch and moan? The people re-elected George W. and re-elected Baby Barack so what am I left with. I have to function in the real world with real means otherwise I am only fooling myself. Like you are fooling yourself with all your bitching and moaning and that goes for Harvey too.
So get a grip. Realize that we can't wish it away and that there will be pain. Now make intelligent choices to mitigate that pain. Otherwise, get a gun and a flag and start a revolution. Hang the politicians. At least you won't be bitching and moaning in my ear with the same old shit over and over again.
Well said and I have to agree. However I hear we need more tax money as bitching and moaning also. My point is raising taxes fixes zero spend problems. That's it, plain and simple. Imcome tax was meant to offset property tax, nope tolls roads where temporary, nope when is too much too much. My paycheck comes in and goes out faster than I would like, that's life we have debts we are must meet. We must live with in out means... That's it, nobody here has the answer, I'm only trying to say is no reform in 60 years we'll be in 100 billon debt have the same posts than. It just needs to be addressed in a way that's a not a never ending black hole. It's simple more tax doesn't fix anything, just my opinion. End rant.
AFP is trying to confuse taxpayers. Naming Allison McHose and Parker Space taxpayer heroes is outrageous. One is Sussex Counties worst pension scammer and the other is her loyal crony. Fortunately for them they have Bruce Tomlinson in their pocket. As for the watchdog, five minutes of reading reveals it's a site for them and their cronies. Shameful!