NJ Turnpike tolls to rise 3% 'at a later date' — if hikes survive another Murphy veto

In a move that will surprise virtually no one in the Garden State, the New Jersey Turnpike Authority has unanimously approved its 2024 budget — which is nearly a carbon copy of the proposed 2024 budget vetoed by Gov. Phil Murphy in October that included a 3% toll hike.

Indeed, the spending plan passed Tuesday morning includes that 3% toll increase, which prompted Murphy to tweet on Oct. 26 that he needed more "justification" for it and "more information for why the board is taking this step." The veto came amid backlash from members of both parties, who said the increase came at a time when New Jersey residents were struggling with affordability. It also came just 12 days before a critical election, when all 120 state legislators were up for reelection.

The newly passed toll increase — assuming there is no veto from the governor this time — will take effect "at a later date" this year, according to the agenda.

So what justification, additional information or improvement in fiscal climate changed Murphy's mind in the three months since that veto?

Bailey Lawrence, a spokesman for Murphy, did not respond to questions about whether Murphy sat down with turnpike officials to discuss the budget and toll increases and did not explain what changed the governor's mind.

“Governor Murphy will approve the New Jersey Turnpike Authority’s 2024 annual budget," Lawrence said. "By responsibly investing in the maintenance of our state’s highways and mass transit, we are continuing to prioritize the safety and mobility of all New Jersey residents and commuters.”

Tom Feeney, a spokesman for the Turnpike Authority, did not respond to requests for comment.

"Toll increases will be the latest broken promise by Governor Murphy and fellow Trenton Democrats," said state Sen. Anthony Bucco, R-Morris, the party's minority leader. "Democrats continue to talk about affordability to entice hardworking New Jerseyans for their vote and then stick them with the bill for their failing policies and budget mismanagement."

How political insiders viewed Murphy's veto

Murphy's explanation for the veto never swayed political insiders, who chalked up the decision to political theater before an election.

There's a number of reasons people weren't buying it:

• Murphy's purported confusion about why the board took the step of issuing a toll increase was bizarre given that his then-newly appointed chief of staff, Diane Gutierrez-Scaccetti, also chaired the board of the Turnpike Authority as head of the Department of Transportation. The state Assembly Republicans tweeted at the time: "Don't you talk to your DOT commissioner, who is now your chief of staff?"

• The toll increase should not have come as any surprise to Murphy. The Turnpike Authority signed off on a new "index" toll plan in spring 2020 — with Murphy's blessing — that allowed the authority to approve 3% annual toll hikes through the budget process and eliminate public input, such as hearings. However, reporting from NorthJersey.com found that the Turnpike Authority in 2020 — when the 3% index proposal was being pitched — told the public at those hearings that the index would be evaluated annually and allow for an increase up to 3%. Yet the message to credit rating agencies and bondholders was that it planned to increase tolls 3% annually.

• Toll increases were also proposed in November by the Port Authority of New York and New Jersey, a bistate agency in which the minutes can be vetoed by the governor of either state. Those toll increases were not vetoed and went into effect earlier this month.

• Another potential indication that there was never any intention to forgo toll hikes in 2024 is that the Turnpike Authority did not notify bondholders of the budget's veto. Bond issuers must provide public notice of certain updates, including financial or event-based disclosures, on the Electronic Municipal Market Access website.

Tap the brakes: Murphy says he'll veto NJ Turnpike budget that includes another toll hike

Union leader praises turnpike budget

The turnpike's budget received praise from Barry Kushnir, of International Federation of Professional & Technical Engineers Local 194.

"It’s critically important to have a reliable and recurring source of revenue for our transportation. We’re the most densely populated state in the nation. We’re the mostly densely traveled," Kushnir said. "I want to testify in favor of that [budget], and I know we’re going to do good things in the future."

Several people spoke out against the budget Tuesday, saying it and toll increases support projects that would increase congestion instead of reduce it, particularly on the controversial 8-mile stretch of I-78 the authority has proposed to widen and reconstruct for $10.7 billion. Plus, the Murphy administration has proposed fare hikes at NJ Transit, a 15% increase July 1 to help close a $120 million budget gap and 3% annual indefinite increases after that, a proposal people fear will make the service unaffordable and fails to address projected shortfalls, which could lead to service cuts later on.

"Transportation in New Jersey is in crisis. The role of the DOT and New Jersey Turnpike Authority is not only about collecting tolls and spending money, it’s also about NJ Transit and moving the people of New Jersey efficiently and at low cost," said Jimmy Lee, a parent and Jersey City resident, who also noted that NJ Transit is facing a nearly $1 billion fiscal shortfall in 2026.

"Due to this funding crisis, I urge that the Turnpike Authority look for ways to pause on projects and move that money over to NJ Transit, where those dollars will be used most effectively," Lee said.

“The New Jersey Turnpike Authority is planning on spending $109 million, just this year, on the turnpike expansion. This is almost precisely the amount that would be raised by the 15% fare increase on NJT riders," said John Reichman, a member of EmpowerNJ, an environmental advocacy group. "The Legislature needs to step in to stop the fare increase, which it can do without cost to New Jersey taxpayers by simply halting work on the turnpike expansion.”

The turnpike board approved the budget unanimously and without comment.

This article originally appeared on NorthJersey.com: NJ Turnpike tolls to rise 3% in 2024