N.J. plans on borrowing another $1.2B for roads and transit

New Jersey Gov.-elect Chris Christie has been testing the waters the last few weeks, and apparently there is a vicious financial undertow.

On Dec. 9 Christie announced he will borrow $1.2 billion to help rescue a drowning highway trust fund. The money will be used for highway improvements and public transit projects.

During his campaign, Christie slammed outgoing Gov. Jon Corzine for his extensive amount of borrowing, calling the strategy to save the state’s highway trust fund “inconscionable.” Christie went a step further and said he did not agree with Corzine borrowing $6 billion in 2006 and extending the highway trust fund for five years.

New Jersey already owes $33.9 billion, and plans to add $10 billion to the hole over the next decade. The new bonds will add $3.2 billion in debt service payments through 2041.

Christie is still opposed to raising the state’s gas tax to help make up some of the debt.