Gov. Christie Buries Tunnel for a Second Time

Governor Chris Christie of New Jersey for a second time, killed the train rail tunnel under the Hudson. This time it looks like it is for good. Gov. Christie said New Jersey could not afford the cost of the tunnel. The original cost of the tunnel was supposed to be approximately $9 billion, with New Jersey contributing $2.7. The Port Authority of New York and New Jersey would have put in $3 billion and the federal government another $3 billion. New Jersey would have been responsible for any cost overruns. Estimates of potential overruns ran as high as $14 billion.

On Oct. 7 Gov. Christie cancelled the project but gave it a reprieve after United States Transportation Secretary Ray LaHoodRay LaHood requested more time to find alternatives for funding the project. The time has run out and the Governor has ended the project.

Critics of Gov. Christie’s decision, say he is ending a project that is important to the region’s economic future. They also accuse him of wanting to use the $2.7 billion, that was New Jersey’s share, to fund the nearly bankrupt Transportation Trust Fund without raising New Jersey’s gas tax. Critics have noted that there is a lack of backup documents and analysis from the federal government regarding how the cost overrun numbers were arrived at.

According to New Jersey Senator, Frank LautenbergFrank Lautenberg, the federal government has offered a number of financing options. These options would have limited or eliminated New Jersey’s responsibility for any cost overruns, according to Senator Lautenberg. The Senator went on to say that the federal project was committed to the project but Gov. Christie did not have the same commitment.

Sen. Lautenberg feels the cancellation of the project will adversely affect the state for decades and hinder the state’s efforts to receive future federal transportation funding. Sen. Lautenberg announced he would start his own investigation into why the project was killed. The probe will look into any conflicts of interest surrounding the tunnel. In press release Sen. Lautenberg said, "This investigation will root out the falsehoods and potential conflicts of interest surrounding the ARC Tunnel and identify the motivations and factors that led to the project’s demise."

In a statement Transportation Secretary LaHood called Gov. Christie’s decision "disappointing and will effect the region and the nation.

Gov. Christie has become popular in Republican circles, with the reputation of being a cost cutting Governor. Even though he denies any interest in running for President in 2012, but many are pushing for him to run.