Friday, August 19, 2016

Construction workers protesting stalemate on N.J. transportation funding



Six weeks ago, Ju-lee Tretter was a laborer on a road crew, repaving the Betsy Ross Bridge over the Delaware River. Five weeks ago, the state of New Jersey laid her off.

Now Tretter feeds her two children by visiting food pantries in three different towns. She couldn’t pay her August rent. Her landlord is angry, and he wants her to leave.

“Where am I going to go? I can’t pay him, and I don’t have money to move,” said Tretter, 43, of Ocean County. “I’m broke beyond broke.”


About three dozen construction workers with similar complaints protested Monday outside the offices of state Sens. Bob Gordon, D-Fair Lawn, and Loretta Weinberg, D-Teaneck. Others gathered in front of the local headquarters of Sens. Jim Whelan and Jeff Van Drew, both South Jersey Democrats. It was the first day of a larger protest campaign, which organizers said would target the office of every elected officeholder in the state, to pressure lawmakers to fix New Jersey’s broken transportation system by raising the gas tax.

The workers have been laid off since July 8, when Governor Christie ordered most state-financed construction projects to close because the Transportation Trust Fund is broke. When Christie issued his executive order, he told the New Jersey Department of Transportation to expect the closure to last at least seven days.

Then, last week, State Senate President Steve Sweeney told the editorial board at The Record that he didn’t expect a fix until after the November election. That would come too late to help many laid-off workers, since most construction sites begin to close in November due to cold weather, said Roger Ellis, a lobbyist for the Heavy and General Construction Laborers Local 472. An agreement that comes after the election would leave most of the workers unemployed for eight months, until the construction season begins ramping up again next spring.

“We can’t just wait for the Senate to act whenever they feel like it,” said Ellis, whose union is organizing the protests. “We need action now.”

Union rallies can be boisterous affairs, often featuring loud chants and a large inflated rat. Monday’s gatherings were civil, even amicable. The protesters arrived with a truck outfitted with three large LED screens, which flashed messages to motorists like “Do your job so we can do ours.”

Rather than chant in the summer heat, the workers stood quietly, using up what little shade they could find. At one point Gordon came outside, and the two sides talked.

“If they don’t figure something out until November, most of us won’t work till March,” said Danny Silva, 49, a road crew foreman. “If that happens, I could lose my home.”

Under their contracts, most construction union members must work at least 1,000 hours per calendar year to qualify for health insurance, Ellis said. Many didn’t start work this year until May, he said, and were laid off the first week of July.

“Many of these people will have to scramble to get the hours they need,” Ellis said.

Gordon said he was aware of their complaints, and hoped for a compromise soon.

“I told them that while I appreciated meeting with them, they probably should be demonstrating elsewhere, Gordon said, since he supports a gas tax increase. “I wish I could have invited them all inside for a cold drink.”

If history is any judge, a solution may not come swiftly. The state’s gas tax of 14.5 cents per gallon was last raised in 1988. Most of the money goes to the Transportation Trust Fund, which has been in crisis since at least 2003.

The problem, transportation expert Martin E. Robins said, is that elected officials of both parties tried to meet voters’ conflicting demands. On one hand, everybody wants a safe transportation network that is well-maintained and gridlock-free. Few people want to pay for it, however. Polls by the Eagleton Institute of Politics at Rutgers University over the last year and a half show a solid majority of New Jersey residents oppose a gas tax increase.

As residents’ demands outpaced the state’s ability to pay for them, politicians of both parties filled in the difference through borrowing.

“It fell apart because of demands for money to be spent and no willingness to raise taxes,” said Robins, former deputy executive director of NJ Transit and founding director of the Alan M. Voorhees Transportation Center at Rutgers University, who first warned of the looming crisis in a report published in June 2000.

Democratic and Republican leaders later forestalled the crisis – and exacerbated it – by finding increasingly sophisticated ways to borrow money, including a major debt restructuring under former Gov. Jon Corzine. The move freed up cash in the short term, Robins said. But it means the state will be paying debt for 30 years on projects like resurfaced roadways, which typically last about five years.

Today the trust fund owes $30 billion in principal and interest, according to the Transportation Trust Fund Authority, which runs it. Making payments on that debt now consumes every penny of revenue from the gas tax and other fees, making it impossible to finance new construction projects.

“Why did the Transportation Trust Fund fail?” said former Gov. Tom Kean, who signed the trust fund into law in 1984. “Because legislators are irresponsible, and governors rewarded that irresponsibility.”

More recently, the Democrats who control the Legislature spent nearly two years calling for new revenue for the fund, while avoiding any mention of the gas tax, which people like Kean and Robins describe as the most likely source. Finally, in June, Sens. Paul Sarlo, D-Wood-Ridge, and Steve Oroho, R-Sussex, introduced a plan to raise $20 billion for transportation over the next decade by raising the gas tax 23 cents. To make the move more politically palatable they suggested a series of tax cuts, including phasing out the estate tax and increasing the earned income tax credit for low-income families.

Just days before the fiscal year’s end, Christie proposed a different plan, offsetting the 23-cent gas tax increase by cutting the sales tax to 6 percent from 7 percent.

Legislators of both parties immediately balked, since Christie’s proposal would cost the state $1.7 billion in lost revenue, according to the nonpartisan Office of Legislative Services. Sarlo and Oroho returned volley by tweaking their plan, including a faster estate tax rollback. Each side declared the other’s plan “dead on arrival.”

And there, for the last three weeks, the debate has stalled. Mark Magyar, a spokesman for Sweeney, said Monday evening there was no news to report.

Meanwhile, Ju-lee Tretter worries whether she’ll have enough money to buy gas for the eight-mile drive from her home in Manahawkin to St. Mary’s Parish in Barnegat. She needs to visit the food pantry.

“I think it’s nonsense,” Tretter said. “They should find an agreement and be done with this. I just want to go back to work.”

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