Transportation is key to New Jersey's success.

New Jersey is less than one year away from a transportation standstill. Unfortunately, many people do not fully understand the severity or urgency of the current transportation funding shortage.

When the New Jersey Chapter of the National Association of Industrial and Office Properties decided to help fund the Regional Plan Association's study, "Putting the Trust Back in the New Jersey Trust Fund," we did so because of the critical role of transportation in the health of our state's residents and economy. The Chapter now strongly endorses the findings and recommendations of the report released by RPA this summer, which fairly and accurately captures the issues and represents a logical approach to addressing our state's transportation financing crisis.

The State created the Transportation Trust Fund in 1984 as a predictable source of transportation investment. Unfortunately, state government reduced the appropriate amount of operating assistance to transportation in the past two decades and borrowed from the Trust Fund's revenues, helping to deplete its resources.

Now, NJ-NAIOP urges state lawmakers to make substantial efforts to identify and secure alternate revenue sources to supplement funds and eliminate expenses in the areas we can all agree are unnecessary. They must make long-term investments to ease the taxpayer's burden. Our 500 members are stakeholders in many ways: They are on the front lines of economic development in New Jersey and are ambassadors for attracting new business.

Our concern goes beyond the business and real estate industry: Most members live in New Jersey, and we are experiencing congestion that negatively affects the environment and the lives of everyone here. The total annual cost of traffic congestion in New Jersey in lost time, operating expenses and fuel consumption has reached $4.9 billion, according to a report issued by the National Center for Transportation and Industrial Productivity at the New Jersey Institute of Technology in February 2000. People traveling longer to and from jobs experience higher levels of stress, which leads to increased health care costs and decreased labor productivity. Congestion also translates into higher costs of truck freight operation through driver wages and has a negative impact on the manufacturing industry and the service sector. If left unchecked, congestion will erode New Jersey's competitive advantage by obstructing the movement of people and goods, .thereby weakening our efforts at business retention and attraction.

New Jersey's roadways must be maintained and expanded to handle the traffic now and in the future on roads such as the New Jersey Turnpike, Route 78 and Routes 1 and 9. In addition, newly created distribution and warehouse facilities in port areas will ease mobility issues, generate jobs and keep much of the distribution business in New Jersey instead of sending these jobs to Pennsylvania.

We must also consider the ongoing development and impact of the current dredging of our channels to 50 feet and future expansion of Port activity. This will generate increased cargo shipping from overseas that will inundate the Port neighborhoods and roadways, which are already sorely lacking good roadways and access. Without sufficient and reliable transportation infrastructure in the Port areas, the New Jersey economy stands to lose thousands of current and future jobs as carriers choose alternate ports for their import business.

Transportation finance must be a priority. NJ-NAIOP is advocating a stable, dedicated and broad-based source of funding for maintenance, repair and expansion of the state's transportation infrastructure that includes highways, county and local roads and transit networks. If we choose to ignore the problem, roads will deteriorate and burden future generations. We support adherence by the TTF to strict financial standards; increased revenue for NJ Transit operations; improved efficiency, advancement of smart growth and the incorporation of best practices to maximize investments; and public accountability to prevent future insolvency of the TTF.

NJ-NAIOP's position supports investment in all modes of our transportation infrastructure and an increase in our mobility options, to be implemented as effectively and as soon as possible.

The State of New Jersey is highly dependent on transportation; the way people experience the transportation system is critical to the future progress of the state and region. We need better roads and bridges, less congestion, more buses and trains, cleaner facilities and a safer system overall. We need to reform our current transportation finance structure along the guidelines of the RPA's recommendations.

Our leaders must be able to, face difficult decisions and show discipline to identify revenues that maximize our mobility and that provide the most benefits for New Jersey taxpayers.

Finally, fixing the Trust Fund now will help to restore the public's trust, which has been eroded by New Jersey's past priorities and past government practices. Raising the gas tax alone would still leave the TTF bankrupt, and motorists are already driving on substandard roads. The time to act is now.

MICHAEL McGUINNESS

EXECUTIVE DIRECTOR

NEW JERSEY CHAPTER OF NAIOP