According to a construction industry group New Jersey Alliance for Action, private and public construction spending will drop next year. The industry group said that the state’s private and public construction spending will drop by $5.5 billion next year, as Governor Chris Christie canceled a $9.8 billion project for rail tunnel in October 2010.
The private and public construction spending will drop to $13.2 billion for 2011 from $18.7 billion in 2010.
The director of public affairs, Charles Ingoglia said that the a total of $2.8 billion for the tunnel and other public construction projects that New Jersey Transit would be spending, now, a total of $140 million is for 2011’s construction plan.
The president for New Jersey Alliance for Action Philip Beachem said that this is not a good forecast for the state’s private and public construction public construction industry, and the situation is unstable for 2011.
According to presentations at a meeting, Washington’s transportation spending that includes the Department of Transportation, the New Jersey Turnpike Authority, the New Jersey Transit, and the Port Authority of New York will only have a total of $2.4 billion for 2011, compares to $6.9 billion for this year.
The department’s director of project management Richard Crum said that the state’s transportation spending is dependent New Jersey’s primary bank account—the Transportation Trust Fund and on the federal highway funding which have no capability to finance after the 30th of June 2011.
About 7 percent or $33 billion of New Jersey’s gross domestic product in 2007 is accounted for private and public construction spending.