Keep an open mind to asset monetization

I have been reading and listening about the topic of asset monetization, especially, selling or leasing the New Jersey Turnpike or some other state assets, such as state lottery, naming rights, air rights, fiber optic networks, just to name a few. I have also been reading with great interest about the opposition to the Gov. Jon Corzine's plan. When people ask me about my opinion on the issue, I tell them that I do not support or oppose something without knowing the plan. That's why I am waiting to see what Gov. Corzine really wants to do.

The opponents of turnpike leasing or selling have been comparing it with the leasing of toll roads in Chicago and Indiana. I believe that New Jersey's assets have different characteristics which warrant an in-depth study and analysis unique to New Jersey - not the Midwest.

It is my understanding that Gov. Corzine asked the state treasurer to study what is called "asset monetization." One might ask why do we need such a study? The answer lies in what happened over many years, many administrations, and many Legislatures during which time $30 billion in state debt was amassed. To service that debt, New Jersey has to devote $2.8 billion, i.e., neatly 10 percent of the entire debt on debt service and that amount keeps growing.

While the states in the rest of the country are having growing economies, New Jersey budget continues to have structural problems because of the large debt that was created when the state borrowed money to pay for operational expenses. In addition, when the economy was thriving, elected representatives at various levels of government did not address long-term impact of the economic downturns and adverse impact of unexpected occurrences, namely terrorist attacks of Sept. 11, 2001.

Gov. Corzine, in his budget address said, "New Jersey's state finances need to get back onto a sound long-term footing, consistent with the values of our people. The continuous use of the state's charge card to pay current operating expenses and stuffing bills into our desk drawers covering up our crisis are over." The debt service diverts money away from other spending priorities in the state budget. We must not allow New Jersey to slip into fiscal paralysis, hamstrung by debt from making capital improvements that are critical to our state's long-term financial prosperity.

During the speech, the governor has presented asset monetization, as a method to pay down the debt and to create more capital to invest towards the needs that keep New Jersey on the right track, such as transportation trust fund, school construction, and open space preservation. Before criticizing the governor's asset monetization study, a responsible thing to do is to present alternate method(s) for paying down the debt. One must approach this subject with an open, but critical mind, and be willing to present constructive criticism, while we are in search for other viable solution(s).

Gov. Corzine has been quite clear that despite the promise of asset monetization, he is not rushing into a decision, and that options will be discussed and debated in public forums and with the Legislature. As a legislator, I have tremendous respect for Gov. Corzine and would like to see that the administration does its homework to protect New Jersey's interests.

Upendra Chivukula

assemblyman (D-17)

Somerset