James E. McGreevey signed an Executive Order today establishing the Toll
Road Consolidation Commission, the first step toward merging the
authorities that run the New Jersey Turnpike, the Garden State Parkway and
the Atlantic City Expressway.
"We are going
to merge these three toll roads in order to eliminate duplication and to
achieve economies of scale," said McGreevey. "The charge of the Toll Road
Consolidation Commission is clear-find the best and most efficient way to
consolidate the Parkway, Turnpike and Atlantic City Expressway."
Specifically, the Governor is charging the Commission with determining the
feasibility of consolidating the three entities, deciding the best method
of consolidation and conducting a full and complete analysis of the bond
implications of the unprecedented merger.
Governor said the Commission would be considering several options for
consolidation including merging the entirety of all three roads or merging
only the administrative portion of each agency while keeping their
respective boards. The Commission will report its findings back to the
Governor by August 1, 2002.
many benefits to consolidating these three roads," said McGreevey. "If all
three agencies operated as one entity, the State would be able to more
efficiently coordinate capital planning and spending. The merger will
ensure that our resources are being used most effectively."
said consolidation is needed now more than ever because it will allow the
roads to better coordinate purchasing, hiring and capital planning.
authorities jointly procured the troubled EZ-Pass system, but have
implemented the system differently," said McGreevey. "Integrated
management will substantially assist in addressing current problems."
each of the three toll roads operate independently of each other. However,
in light of the $5.3 billion budget gap facing the state in the next
fiscal year, McGreevey is looking at toll road consolidation as an option
that will save the State upwards of $10 million annually that can be used
on capital transportation projects.
Atlantic City Expressway is run by the South Jersey Transportation
Authority and had an operating budget of over $47 million in 2001. The
Garden State Parkway, which is run by the New Jersey Highway Authority,
had an operating budget that was just under $136 million last year. The
Turnpike, administered through the New Jersey Turnpike Authority, had an
operating budget of approximately $167 million during 2001.
necessary, the Commission will have the option of enlisting the services
of an independent management consulting firm to provide a management
reorganization plan that will integrate management and operations of the
Commission will consist of the chairpersons and executive directors of the
Turnpike, Highway and South Jersey Transportation Authorities, the
Governor's Chief of Management and Operations, Transportation Commissioner
James P. Fox, one specialist in public finance matters, one specialist in
public sector labor matters, one representative of a labor union from each
of the three authorities, a toll payer, and a bus or train commuter.
the Governor's Authorities Unit, Paul Josephson, will chair the