TRENTON, N.J. - The state's transportation chief on Monday said a state or federal gas tax break would jeopardize funding for critical bridge and roadway projects just as the state is expecting a robust summer tourism season.
Republican presidential candidate John McCain and Democratic candidate Hillary Rodham Clinton back a federal gas tax holiday to try to help stave off rising gas prices. Democratic candidate Barack Obama doesn't support the idea.
New Jersey Gov. Jon S. Corzine on Monday a gas tax holiday isn't his "favorite idea," but argued Clinton's proposal is at least paid for with a new tax on oil company profits and would last just a few months, from Memorial Day to Labor Day.
Corzine, who has endorsed Clinton's presidential bid, last week said New Jersey couldn't afford a state gas tax holiday amid state budget woes.
"I want to say it's not my favorite idea, but realistically she is paying for it and it is a three-month period," Corzine said.
Corzine later released a statement to make clear he doesn't support a federal gas tax holiday.
Corzine's comments came in a discussion he joined with Daniel Tarullo, an Obama economic adviser.
"This is not going to undermine our long run ability to invest in alternative energies and other things," Corzine said of Clinton's proposal. "I think it's more about stating that we are interested in what the small guy and middle-class is doing."
He said rising gas prices are hitting truckers and commuters hard.
"People really, really are pressed right now because the cost of living is incredible for middle-class to moderate-income families, and I think that's what Sen. Clinton is addressing here," Corzine said.
Still, he said it's unlikely Congress will approve the plan in time.
"I think it's very unlikely you could get a windfall profits tax through the Congress in a year let alone between now and May 31," Corzine said.
Tarullo said that would make it impossible to pay for revenue lost by the holiday.
"Let's not undermine the funding we have to improve our transportation infrastructure," Tarullo said.
Transportation Commissioner Kris Kolluri meanwhile told an Assembly tourism committee skyrocketing fuel prices makes it more likely New Jersey will see a robust tourism season.
"People will want to vacation closer to home," Kolluri said.
But he said a three-month federal gas tax break would cost New Jersey $190 million in federal transportation aid that's already been allocated for bridge and roadway projects that mean 6,300 jobs.
"New Jersey's robust tourism economy is dependent on maintaining the scarce resources that we currently devote to transportation infrastructure," Kolluri said.
But Sen. Jennifer Beck, R-Monmouth, called for Corzine to support the proposed summer gas tax break. She said it's not a long-term solution, but would help.
"New Jerseyans are feeling the pinch of higher fuel prices," Beck said. "They need relief and they need it now."
The state's transportation improvement fund is slated to run out of money in 2011. The governor's plans to significantly increase highway tolls to pay for improvements received no legislative support.
Transportation chief: Gas tax holiday would risk key projects 
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