11/24/2008
Reminder: Toll hike increase to start on Dec. 1
Recently, the New Jersey Turnpike Authority approved a recalibrated plan to raise tolls on the New Jersey Turnpike and Garden State Parkway. Tolls will rise in 2008 and 2012, while a proposed increase for 2023 was scrapped. While NFIB/New Jersey was successful in helping to stop a more onerous proposal by Gov. Jon Corzine, and encouraged provisions that will secure a 5 percent off-peak E-Z Pass discount and an additional 5 percent for high-volume truckers using the Turnpike and Parkway, the overall hike is still staggering.
The toll for the average truck trip on the New Jersey Turnpike will increase by $2.05 in 2008 and $3.75 in 2012. The toll for the average truck trip on the Garden State Parkway will increase by 60 cents in 2008 and 95 cents in 2012. That is a 40 percent increase for the first adjustment compounded by an additional 53 percent in 2012. Overall, this is roughly a 115 percent increase once the hikes are fully implemented in 2012.
A 5 percent discount will apply to truckers who use EZ Pass during off-peak hours and an additional 5 percent discount will be given to high volume commercial users who spend $10,000 or more a month on these two New Jersey tolls roads. There are 20 hours of off-peak per weekday as only 7-9 a.m. and 4:30-6:30 p.m. are considered peak hours, Monday through Friday.
This increase is set to begin at 12:01 a.m., Dec. 1, 2008.
Business incentive proposal moves through the Legislature
The New Jersey Legislature is quickly moving to approve a package of economic stimulus bills intended to direct state resources to struggling families and businesses trying to survive in this tough economic environment. The legislation which includes a plan to extend cash grants to small and mid-sized businesses that hire new employees or make capital investments has had mixed reviews.
We have expressed concern to the Legislature that the incentives -- $3,000 grants for creating new jobs and a 7 percent reimbursement for capital expenses -- will not be offered to many New Jersey small businesses. Gov. Corzine has called for the grants be limited to companies with between five and 500 workers, eliminating thousands of small entrepreneurs from this so-called stimulus.
Additionally, small business advocates are concerned because the grants will only be extended to companies that offer health benefits to workers, a stipulation that will disqualify a growing number of small businesses that cannot afford health insurance. Studies show that a majority of companies that do not offer health benefits are those with fewer than 20 employees.
While we strongly supports the expansion of economic incentives that will stimulate capital investment and job creation in New Jersey, the current proposal does little to help the Main Street businesses that are currently facing severe economic challenges.
We continue to talk to the administration and legislators in an effort to encourage real reform that will benefit the small business community.
