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State of New Jersey
Executive Order #15

Governor James E. McGreevey

WHEREAS, three separate instrumentalities of the State of New Jersey currently operate the New Jersey Turnpike, Garden State Parkway and Atlantic City Expressway (collectively, the "authorities"); and

WHEREAS, in light of the State's severe fiscal crisis it has become necessary to examine the fiscal prudence of maintaining three separate instrumentalities to operate these toll roads; and

WHEREAS, these authorities are at present jointly acquiring and operating electronic toll collection systems and may in the future make other joint investments in intelligent transportation systems; and

WHEREAS, the authorities are confronting the need to implement state-of-the-art security systems made necessary by the threat of terrorist activities; and

WHEREAS, in light of the age and condition of the existing toll roads, the authorities are confronting the need to rehabilitate and/or modernize their facilities and roads consistent with the State's smart growth policies; and

WHEREAS, the authorities now have widely disparate available capital funds for these purposes; and

WHEREAS, there is a need for the authorities to engage in more coordinated planning in the allocation of their capital budgets; and

WHEREAS, it has become necessary to reassess the operational aspects of the authorities to optimize efficiency and capacity and to reduce duplication of effort; and

WHEREAS, in light of the State's serious fiscal crisis it has become necessary to reexamine whether the functions of these authorities to acquire, construct, administer, operate and maintain their respective toll roads are duplicative and can be consolidated to promote operational efficiency and economic savings;

NOW, THEREFORE, I, JAMES E. MCGREEVEY, Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and the statutes of this State, do hereby ORDER and DIRECT:

  1. There is hereby created a Toll Road Consolidation Study Commission (the "Commission").

  2. The Commission shall consider all issues related to the consolidation of the authorities including but not limited to (a) legal matters, including review of bond covenants and labor issues, (b) operational matters, (c) financial savings or costs, including an assessment of market conditions and whether they make consolidation a viable or costly option, and (d) the need for more coordinated planning in the allocation of the authorities' capital budgets.

  3. The Commission shall consist of the following members appointed by the Governor:

    1. The chairpersons of each of the respective authorities;

    2. The executive directors of each of the respective authorities;

    3. At least one specialist in public finance matters;

    4. At least one specialist in public sector labor matters;

    5. One representative of a labor union from each of the three authorities;

    6. One toll payer of the State of New Jersey;

    7. One individual who commutes via bus or railroad;

    8. The Chief of the Governor's Office of Management and Operations or his designee;

    9. The Chief of the Governor's Authorities Unit or his designee; and

    10. The Commissioner of the State Department of Transportation or his designee.

  4. The Chief of the Governor's Authorities Unit shall serve as chairperson of the Commission.

  5. The Commission shall report its findings and recommendations concerning toll road consolidation to the Governor not later than August 1, 2002.

  6. The members shall serve without compensation except for reimbursement of necessary expenses.

  7. The Commission is authorized to engage the services of an independent management consulting firm if necessary for the purposes of conducting a management reorganization plan in order to clarify and detail the business vision of the authorities and integrate management and reengineer operations of the authorities where necessary.

  8. The Commission is authorized to utilize the services of each of the authorities, both internal staff as well as outside legal, engineering, financial and other professionals, including those professionals engaged pursuant to Paragraph 7 thereof, as necessary to complete its charge and related analyses. Any fees accrued by the Commission for these services shall be assumed by the authorities.

  9. All State departments and agencies are hereby directed, to the extent not inconsistent with law and within budgetary constraints, to cooperate with the Commission to furnish it with such information, personnel, and assistance as are necessary to accomplish the purposes of this Order.

  10. This Executive Order shall take effect immediately.


GIVEN, under my hand and seal this
26th day of March in the Year of Our
Lord, Two Thousand and Two, and
of the Independence of the United
States, the Two Hundred and Twenty-Sixth.

/s/ James E. McGreevey




/s/ Paul A. Levinsohn

Chief Counsel to the Governor

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