NJ Must Pay $271M For Canceling Tunnel

TRENTON, N.J. (AP) — New Jersey owes the federal government more than $271 million after canceling a rail tunnel connecting the state with New York, according to a debt notice obtained Monday by The Associated Press.

The letter from the Federal Transit Administration’s chief financial officer to NJ Transit’s executive director demands payment of $271,101,291 by Dec. 24.

It’s money the government wants New Jersey to repay for work done on the Hudson River tunnel before Republican Gov. Chris Christie terminated the project. The notification follows a warning letter earlier this month estimating the charges.

“FTA demands payment in full within 30 days from the date of this letter, hereinafter referred to as the ‘delinquency date,”’ the letter states. The letter was dated Nov. 24.

NJ Transit Executive Director Jim Weinstein said earlier this month that the state hadn’t determined if it would have to pay any money back.

NJ Transit has the right to request a review of the charges and to dispute all or part of the debt.

Christie’s office did not return a message for comment.

The $8.7 billion project to construct a second rail tunnel between New Jersey and New York — known as Access to the Region’s Core, or ARC — was 15 years in the making when Christie pulled the plug Oct. 27, citing potential cost overruns. More than $600 million had been spent for engineering, construction and environmental studies.

Christie has since said he would consider contributing to a cheaper alternative: extending New York’s No. 7 subway line under the Hudson River to New Jersey.

John Wisniewski, who chairs the state Democratic State Committee and heads the Transportation Committee in the state Assembly, questioned Christie’s financial acumen.

“We now know that his looking out for our financial interests will cost New Jersey taxpayers at least $271 million,” he said. “To make matters worse, the governor has now pledged New Jersey money to help finance New York’s subway expansion — without even seeing a plan or a cost estimate. It doesn’t seem like he’s being much of a financial watchdog, only a theatrical bulldog.”

(Copyright 2010 by The Associated Press. All Rights Reserved.)

Comments

One Comment

  1. ammo17 says:

    millions are are a lot cheaper than billions. lautenburg and menendez should be ashamed of themselves for letting the federal government take their slimy methods of getting even with our governor.now you know why we can`t wait to vote these two incompetent senators out of office.

  2. Bobby says:

    The unions represent about 8% of the workers, so, what saying is this mighty 8% is dictating the economic direction of this country? The CEO’s salaries of just a handful of corporations equal about a Billion dollars and they have no say at all. Why was FOX NEWS aka “Entertainment” the only outlet that had their “news people” and “commentators” at all the tea party rallies?
    Rich people are RICH because tea party people will work for nothing!!!!

  3. Julie C says:

    You have no idea what you are talking about (last commenter). If you want to talk about how bias the so called “liberal” media is then let’s compare apples to apples (not oranges) “Fox News” is the most bias media out there. If Fox News weren’t bias then why did that network donate 1 million dollars to the Republican Party campaign this last election cycle? When Keith Olbermann of MSNBC donated money to support several democratic campaigns MSNBC suspended him.

  4. Angel_Mom says:

    The Liberal Media at its best… Any story can be made to sound bad against an opposing party even if the REAL truth lies between the lines.

    Christie doesn’t want NJ to foot the bill for a potentially catastrophically expensive project that cannot give any indication to the BOTTOM LINE and therefore the Liberal Government is punishing the state by forcing a “RE-Payment” of THEIR project, and BLAMING the governor who is TRYING to control an already out of control budget.

    Way to go Liberals… You made YOUR bed and now you want US to lie in it?!

    1. Greg B says:

      If these conservative/republican governors want to grandstand then let them deal with repaying the government money that they were given. They always want to grandstand and then sneak and take stimulus money for their states. This is a free country, grandstand as you wish, but be man/woman enough to except the consequences of your decisions. But no, they want to cry retaliation and the government is picking on them for looking after their state. Since this is the Christmas season I’ll just quote a famous Christmas character “Baaahhh Humbug!”

  5. MJ says:

    That’s right – blame unions for everything including raising the standard of living and creating the middle class in the 30s. People like you have been brainwashed by the rich for many years into thinking the way you do.

  6. Jake W says:

    This is what happens when the stupid uneducated and uninformed electorate of NJ puts a stupid dumb conservative in power. To the people of NJ – “You reap what you sow” – You elected Christie, now live with it and pay back the 271 million you now owe the federal government!

  7. Jake W says:

    This is what happens when the stupid uneducated and uninformed electorate of NJ put a stupid dumb conservative in power. To the people of NJ – “You reap what you sow” – You elected Christie, now live with it and pay back the 271 million you now owe the federal government!

  8. Jake W says:

    This is what happens when the stupid uneducated and uninformed electorate of NJ put a stupid dumb conservative in power. To the people of NJ – “You reap what you sow” – You elected Christie, now live with it and pay back the 271 million you now owe the federal government now!

  9. Oma rRobinson says:

    You guys are really stupid at the end of the day NEW JERSEY TAX PAYERS HIS FOOTING THE BILL FOR 271,000,000 who cares how the headlines read

  10. Agent_C says:

    John Wisniewski; “To make matters worse, the governor has now pledged New Jersey money to help finance New York’s subway expansion […]

    This dimwit fails to realize that the primary beneficiaries are New JERSEY residents.

  11. Shell says:

    The title is misleading. The word “pay” should be “re-pay” or “refund”. This is money the federal government gave New Jersey to build the tunnel which New Jersey has just decided to abandon.

  12. ellen says:

    It’s all about the Unions. Construction has been stopped, the union thugs go crying to their godfather in the White House and he promises to punish N.J. Gov.

    Follow the money people……unions!!!

  13. K Ward says:

    It appears to me that this is apiece of sensatinalized journalism, and clearly mistitled.
    The title should read” NJ must pay 271M for cost already incurred by the Fereral Government after cancelling further work on billion dollar tunnel to New York”
    Let your journalism follow the true story line, not some senssationalized version thzat does not truely describe the story.

    1. Eagle says:

      Mr. Ward, I agree with you, but you must know that the reason that they report this way is due to their inherrant “Bias”.!!!

Comments are closed.

More From CBS New York

BUY TICKETS NOW
Get Our Morning Briefs

Listen Live