Transportation officials say the increases are needed to fund a 10-year, $24 billion capital improvement program and provide critical funding for New Jersey Transit. The last major capital improvement program requiring toll adjustments was approved in 2008.
The hikes will produce $1 billion for road projects and $375 million for New Jersey Transit in 2021, Transportation Commissioner Diane Gutierrez-Scaccetti wrote in a report in May. Tolls can be increased as much as 3% per year beginning in 2022, under the plan approved in May.
The gas tax increase, which amounts to about 22%, stems from a 2016 law that requires the state fund supporting bridge and road infrastructure to maintain a $2 billion program annually. The law requires an annual adjustment to the fuel tax if receipts don’t meet that level.
Gasoline consumption dropped about 39% from March to May — coinciding with the coronavirus outbreak — and led to a drop in receipts for the fuel tax, state officials have said.