NJ’s Investment Is State’s Largest Construction Program Ever

Farmingdale – The Utility and Transportation Contractors Association (UTCA) today released a major study by the American Road & Transportation Builders Association (ARTBA) on what the Murphy Administration’s FY ’21 $1.3 billion capital investment in highways and bridges – the largest construction program in state history – will mean for New Jersey at a time when the COVID-19 pandemic has decimated the state’s economy.

“This report makes clear that while the nation is facing substantial transportation infrastructure funding shortages, New Jersey has taken decisive action to meet those challenges,” said UTCA CEO Robert Briant, Jr. “Governor Murphy and Department of Transportation Commissioner Gutierrez-Scaccetti deserve credit for their proactive decision to boost transportation infrastructure funding by $600 million. Their action means we will not fall behind in maintaining and repairing our roads and bridges. The rest of the country should look to New Jersey as an example of how to act in times of crisis.”

Authored by ARTBA Chief Economist Alison Black, “The Economic Impacts of $1.3 Billion in New Jersey Highway & Bridge Capital Investment,” highlights what investing $1.3 billion in highways and bridges will yield for the state’s economy. Among the benefits:

• Over $3.4 billion in additional economic output, earnings, and tax revenues, an average return of $2.62 for every $1 invested.
• An increase in business activity of $2.53 billion across all sectors of the state economy.
• Creating or supporting more than 12,000 jobs annually, providing an estimated $670 million per year in wages.
• Nearly half of these jobs—46 percent— would be outside of the construction industry.
• More than $143 million in additional tax revenue from new economic activity.

A copy of the report is attached.

The impact of the pandemic on New Jersey’s economy has been devastating. Collections from the state’s Petroleum Products Gross Receipts Tax and Motor Fuel Tax are expected to drop considerably in FY 2020 and FY 2021 compared to original estimates. Reduced economic activity has also caused highway toll revenue to fall substantially, while the Port Authority is expected to see revenue declines of several billion dollars.

That situation is mirrored nationally in monthly reports ARTBA began issuing in March. “Impacts of COVID-19 on State & Local Transportation Revenues & Construction Programs,” the most recent report issued for the month of October, explains the severity of transportation funding related issues caused by COVID-19, including 18 states cancelling or delaying projects and at least 49 states, transportation authorities and local governments that have publicly projected declining revenues.

“Infrastructure investment always has and always will be one of the best ways to spur economic growth,” added Briant. “Governor Murphy has made his commitment clear but we know that the state cannot do it all. The federal government must play a significant role as well. We hope transportation infrastructure funding will be a top priority of the Biden Administration, because these investments are what New Jersey, and the country, sorely need right now.”

About UTCA

UTCA of New Jersey is a non-profit trade association headquartered in Wall, New Jersey. UTCA currently has approximately 1,000 member firms in the public and private sectors, who are active in all phases of heavy, highway, utility, and marine construction, as well as site work including remediation of brownfields and contaminated sites. For more information, log on to http://www.utcanj.org and follow on Twitter @UTCANJ.

About ARTBA

The American Road & Transportation Builders Association (ARTBA) brings together all facets of the transportation construction industry to responsibly advocate for infrastructure investment and policy that meet the nation’s need for safe and efficient travel.  ARTBA also offers value-added programs and services providing its members with a competitive edge.

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