CODEY TO WASHINGTON:

                        “IF THERE IS ‘NO DECISION,’ THEN RELEASE OUR HIGHWAY FUNDS”

                                            Acting Governor Continues to Defend Pay-to-Play Ban

(TRENTON)- Acting Governor Richard J. Codey today sent a letter to U.S. Transportation Secretary Norman Y. Mineta requesting that the U.S. Highway Administration release the $250 million in federal highway aid it has withheld from New Jersey, after the Federal Highway Administration said yesterday it has “made no decision” regarding whether or not New Jersey’s pay-to-play executive order conflicts with federal regulations:

January 14, 2005

The Honorable Norman Y. Mineta

Secretary, U.S. Department of Transportation

400 7th Street, S.W.

Washington D.C. 20590

Dear Secretary Mineta:

            It is imperative that public officials work together to combat public corruption and restore the public trust in the integrity of government.  Former Governor James E. McGreevey recently signed Executive order 134 banning the practice known as pay-to-play for state contracts.  I have vowed to keep this executive order in place during my term as Governor, and the Legislature is currently working on codifying this ban into permanent law.  I strongly support the order and believe it will promote fairness and equity in the awarding of state contracts in New Jersey. 

            I was surprised and dis-heartened when the U.S. Department of Transportation Federal Highway Administration sent a letter last week to the New Jersey Department of Transportation stating “Executive Order #134 conflicts with Federal regulations and may not be included in Federal-aid contracts.” The January 6^th letter signed by Division Administrator Dennis L. Merida further stated that “Federal Highway Administration’s Chief Counsel has confirmed this position,” and “Unless this provision is removed from Federal projects” the Highway Administration “cannot authorize federal funds.”

Apparently the Federal Highway Administration believes that by prohibiting vendors from making political contributions New Jersey is creating an unfair or non-competitive bidding process.  Accordingly, in order to ensure a competitive bidding process and receive federal funding, New Jersey must preserve the ability of State vendors to make large political contributions.

            As a result of the Federal Highway Administration’s decision, $250 million dollars of New Jersey’s federal highway aid has already been withheld.  This is not an issue where the withholding is a future possibility, rather, the funding has already been withheld and the construction schedule of nineteen projects has been threatened by that decision. 

In response to the January 6^th  letter, the State of New Jersey filed suit yesterday in Federal District Court.  However, it has now come to my attention that FHWA issued a statement yesterday to the press maintaining it had “made no decision on the executive order.”  I was heartened to learn that the position reflected in Mr. Merida’s January 6^th  letter is not accurate and does not reflect a final decision of the FHWA.

Since a final decision regarding E.O. 134 has not yet been made by your Department, I am respectfully requesting the immediate release of New Jersey’s federal highway funding.  If the matter is still under review, there is no reason to withhold this aid until a final decision has been made.  

My administration is prepared and willing to meet with representatives from FHWA to explain our position on this issue in greater detail.  In the meantime, however, our funding should be made available so that critical transportation projects can move forward in our state.

I appreciate your understanding as we continue to make progress in our efforts to regain the public trust, while ensuring that our highways are safe and efficient for New Jersey residents.

Sincerely,

Richard J. Codey

Acting Governor