Feds Send $271 Million Bill to New Jersey for Cancelled Tunnel

  • Share
  • Bookmark to Delicious
  • Bookmark to StumbleUpon
  • Comment on this story

As if the budget crisis in New Jersey is not enough to keep lawmakers and taxpayers awake at night, federal officials just presented the state with a whopping bill of $271 million for the financial assistance it’s already paid on the Hudson Rail Tunnel project. Last month, Gov. Christie cancelled the pubic works project over concerns of potential cost overruns.

The project would have created a rail tunnel between New York and New Jersey at a total cost of $8.7 billion, and was to be funded collectively by The Federal Transit Administration, the Port Authority of New York and New Jersey and the state of New Jersey. The state’s total obligation was $2.7 billion plus the cost of overruns. Christie said that he was not prepared to write a blank check on the potential overruns that might push the state’s share to over $5 billion.

New Jersey is already facing an $11 billion budget deficit, one of the highest of any state in the country. According to a public opinion poll by Rutgers-Eagleton, New Jersey residents supported the decision to scrap the tunnel by a margin of 51 percent to 39 percent.

New Jersey On-Line

  • expose this
  • Share
  • Bookmark to Delicious
  • Bookmark to StumbleUpon
Comment on this Article:

Notify me of followup comments via e-mail. You can also subscribe without commenting.