the future of funding

By: zoe baldwin

On behalf of our Association, UTCA would like to thank all of our members for their unflagging dedication. You and your teams have kept safe and kept working through these uncertain times, and it is that tenacity and force of spirit that will help shield our industry from the worst of this economic downturn.

Due to the economic slowdown caused by this pandemic, New Jersey’s gas tax and toll collections have dropped precipitously, and the full effect of the pandemic on our industry cannot yet be determined. Through his position on the board of the New Jersey Transportation Trust Fund Authority, CEO Bob Briant has been able to gain assurances that despite the present downtrend of gas tax and toll collections, both NJDOT and the NJ Turnpike expect their current and upcoming capital programs to remain level or increase (especially for the NJ Turnpike). Current projections for the State’s Transportation Trust Fund show that the Authority has enough bonding capacity to continue funding the planned capital program for the remaining four years of the current eight-year program. Collections for the 2022 program cannot yet be forecasted, but as of this writing, we expect traffic counts to rebound close to pre-COVID levels.

Fortunately for the industry, included in the Transportation Trust Fund reauthorization bill that was enacted in 2016 was language that requires a “true-up” of revenues every year. This provision enables the State Treasurer to increase the gas tax as necessary to maintain the current capital program funding levels without legislative approval. This will help protect the TTF and the industry from the loss of gas tax revenue caused by this pandemic. On the federal front, we have been working with our congressional del"Despite some dark egation as well as our national assoclouds, there is ciation, ARTBA, to support federal infrastructure-based brightness on the horizon" stimulus funding. As of this writing, no concrete plans have been - Zoe Baldwin advanced by Congress, but we remain optimistic that this tried-and-true economic salve will be applied now as it has under similar times of crisis.

And despite some dark clouds, there is brightness on the horizon. Over 1,000 of you submitted comments in support of the New Jersey Turnpike Authority and the South Jersey Transportation Authority toll increases. At the time of this writing, both plans are expected to be approved during the upcoming board meetings in late May. This welcome news is thanks in part to your efforts, which will bring a new stream of projects into the pipeline. This funding was needed and planned for well before the pandemic, but it has never been more necessary. Now more than ever, we must bring capital projects to construction quickly and efficiently, and both agencies have an excellent record of success.

Utility work also continues to keep crews busy, with many ongoing projects still in full swing and a continuing slate of drinking water work on the horizon. Contractors can also expect to see a new line of combined sewage system projects to come online in the coming years as communities will be working to meet goals in their EPA-directed Long-Term Control Plans. Utility work helps the State meet important public health goals and we expect this sector will continue to flourish.

We are grateful to be here in support of you and your companies as we all navigate this new normal. Rest assured that your Association has been working harder than ever to keep our industry open, operational, and funded.