We all knew that this was coming. The Oroho-Sarlo-Union Boss gas tax increase is the gift that will keep on giving, or rather taking, for years to come, and getting bigger along the way!
Senators Steve Oroho and Paul Sarlo sold out for massive campaign contributions from the same union bosses that now control Sussex County.
The Sarloroho bromance is costing the state millions and now seems primed to blow up the labor agreements that have delicately held the state budget together.
New Jersey will raise its per-gallon gasoline and diesel tax by 20 percent to help cover the $2 billion a year the state needs for transportation projects. The 4.3-cent-per-gallon increase, to 26.9 cents, will go into effect on October 1, Treasurer Elizabeth Muoio said in a statement. In all, state and federal per-gallon charges will total 59.72 cents, ninth-highest among U.S. states, according to data from the American Petroleum Institute, a Washington-based trade group.
The heaviest cost factor to the Transportation Trust Fund is the inflation that had been created by a sudden influx of borrowed and tax cash that the Sarloroho boys created. The same failed formula was used by Gov. Jim McGreevey 15 years ago for school projects. A formula that was blown out in a few years due to greed and tightening the labor market.
The unions have increased their labor rates and firms like Paul Sarlo’s employer (and father-in-law) Joseph M Sanzari Inc., have increased their bids because the work is plentiful and the pay-to-play companies are few. It screws the taxpayers, but makes for great campaign fundraisers from Contractor and Union Boss PACS!
That is why you see lots of sparsely manned work sites with projects that never seem to end.
Thanks a lot boys!
New Jersey had the second-lowest gasoline taxes in the country. That ended in November 2016, when Governor Chris Christie signed legislation to enact the first gas-tax increase in almost three decades to support the Transportation Trust Fund, an eight-year, $16 billion program to pave roads, repair bridges and improve commuter rail.
But the massive Union PAC contributions poured in for Oroho and Sarlo and their minions in a brilliantly executed takeover of New Jersey by way of the gas pump!
We have stated repeatedly, the gas tax may be justified, but the campaign contribution shakedown of contractors and labor unions by Sarlo and Oroho are not!
N.J. gas tax will rise 4.3 cents a gallon this fall
Samantha Marcus For The Star-Ledger
New Jersey’s gas price will rise another 4.3 cents per gallon on Oct. 1, Gov. Phil Murphy’s administration announced Thursday.
This latest hike comes just two years after motorists were stung with a 23-cent per- gallon increase. It previously had been unchanged at 14.5 cents a gallon since 1988. The 4.3 cent increase brings the total state taxes to 41.4 cents on each gallon of motor fuel pumped in New Jersey and 48.4 cents on each gallon of diesel. Motorists are buying less gas in New Jersey, and state law requires the treasurer to increase the tax rate each year to ensure it brings in enough cash to pay the bills for road and rail projects around the state.
“The precise change in the gas tax rate is dictated by several factors, all of which are beyond the control of the current administration,” state Treasurer Elizabeth Muoio said in a statement. Unlike many other states, New Jersey’s new gas tax is pegged to consumption, not to the price of a gallon of gasoline. The tax rate will not rise or fall automatically as gas prices do.
But it does have to be adjusted if the tax doesn’t generate a consistent amount of funding for the Transportation Trust Fund, under the 2016 law that raised taxes on gasoline by nearly 23 cents a gallon.
Prior to that time, New Jersey had the nation’s second- lowest gasoline taxes. But lawmakers desperate to raise money for a nearly empty Transportation Trust Fund struck a deal with then-Gov. Chris Christie to hike gas taxes to finance an eight-year, $16 billion transportation program. They cut the sales tax, eliminated the estate tax, raised the retirement income exclusion and the Earned Income Tax Credit and offered a tax credit for veterans.
New Jerseyans voted later that year to amend the state Constitution to dedicate gas tax revenues to transportation projects. Christie’s administration kept the gasoline tax flat since last fall, the first opportunity to institute another increase. The ex-governor should have done so, according to the formula, Muoio said, but instead inflated its estimates of how much gas motorists would consume.
“Unfortunately, because the Christie administration overestimated gas consumption rates last year, the tax rate has to be increased by nearly 2 cents more this year in order for us to meet our obligation … and fully fund the state’s many pressing transportation infrastructure needs,” she said.
State Sen. Kip Bateman, R-Somerset said he plans to introduce a measure to end the possibility of an automatic increase. “New Jersey gas used to be the best bargain in the Northeast,” Bateman said. “The more you raise it, the more people start to look at other places.” A gallon of gas in Pennsylvania carries 58.7 cents in state taxes; a gallon of gas in New York, 45.8 cents.
The Associated Press contributed to this report.