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Capital Improvements

Capital Program Documents

Approval Letter
(pdf 51k)

Section I

Public participation process
Statewide Transportation Plan
Conformity for MPO plans/programs
Advance construction projects
Multi-Year Funding
Development of the STIP
Congestion Management Systems
STIP Mod's & Amend's
Non-Federal Match
Financial plan
Federal funded projects
Financing transition projects
How to use this document

Section II
Financial Tables

Section III
NJDOT Projects

Section IV
NJ Transit Projects

Section V
Authorities, Project Descriptions

Section VI
Transition Projects

Section VII

Appendix A
FY 2005 Major
Project Status

Appendix B
FY 2006-07 Study &
Development Program

FY 2006 - 2008 Statewide
Transportation Improvement Program


a. Overview

This document is the Statewide Transportation Improvement Program for the state of New Jersey for federal fiscal years 2006 (beginning October 1, 2005) through 2008.

The Statewide Transportation Improvement Program (STIP) serves two purposes. First, it presents a comprehensive, one-volume guide to major transportation improvements planned in the state of New Jersey therefore providing a valuable reference for implementing agencies (such as the New Jersey Department of Transportation and the New Jersey Transit Corporation) and all those interested in transportation issues in this state. Second, it serves as the reference document required under federal regulations (23 CFR 450.216) for use by the Federal Highway Administration and the Federal Transit Administration in approving the expenditure of federal funds for transportation projects in New Jersey.

Federal legislation requires that each state develop one multimodal Statewide Transportation Improvement Program (STIP) for all areas of the state. In New Jersey, the STIP consists of a listing of statewide line items and programs, as well as the regional Transportation Improvement Program (TIP) projects, all of which were developed by the three Metropolitan Planning Organizations (MPOs). The TIPs contain local and state highway projects, statewide line items and programs, as well as public transit projects.

This STIP conforms to—and in many cases exceeds—the specific requirements of the federal regulations:
  1. It lists the priority projects programmed for the first three years of the planning period.
  2. It is fiscally constrained for the first three years. A detailed discussion of fiscal constraint issues is found in subsection “j” below.
  3. It contains all regionally significant projects regardless of funding source.
  4. It contains all projects programmed for federal funds.
  5. It contains, for information, state-funded projects.
  6. It contains expanded descriptive information—considerably more than required by the federal regulations—as described in subsection “l” below.

b. Public participation process Back to top

New Jersey is completely covered by three Metropolitan Planning Organizations (MPOs): the Delaware Valley Regional Planning Commission (DVRPC), the South Jersey Transportation Planning Organization (SJTPO), and the North Jersey Transportation Planning Authority Inc. (NJTPA). The STIP includes the three MPO Transportation Improvement Programs (TIPs) without modification.

Each MPO has a public participation process for their Transportation Plan, TIP and conformity determination. The State makes copies of the STIP available for each MPO public meeting and representatives from the NJDOT and NJ TRANSIT will be present to answer questions and concerns raised by the public on our program. The public comment period for each MPO TIP and the STIP ran for a period of 30 days.

c. Statewide Transportation Plan Back to top

The Federal Statewide Planning Rule requires that the STIP contain projects consistent with the statewide long-range transportation plan. New Jersey’s statewide plan was prepared and submitted to the state legislature on March 1, 2001.

Unlike the previous plan, Transportation Choices 2025 (pdf 40k) is more than a “policy plan.” It identifies future transportation needs and offers strategic direction on a systems level that is based on technical analysis, the use of alternative scenarios evaluation, and extensive public involvement. The Plan contains 5-, 10-, and 25-year elements to help guide the investment agenda for the state’s future transportation expenditures.

The process to develop Transportation Choices 2025 (pdf 40k) went far beyond typical planning efforts, incorporating website technology in concert with traditional methods in plan preparation, public involvement, and overall project management. The New Jersey Long Range Transportation Plan website offers valuable transportation information and is designed to encourage the exchange of information between users of the state’s transportation system and the Department.

A consulting firm has been selected to complete several tasks over an eighteen-month period that will update and enhance some of the information contained in the Transportation Choices 2025 (pdf 40k) Long Range Transportation Plan issued in March 2001 and will be part of the material developed to prepare the next Long Range Plan to be issued in 2006. Improvements are being made to the Long Range Transporation Plan website so it can be an easily accessible source of information on the development of the Long Range Plan and as well as a way for the public to offer their input on the Long Range Plan to the Department over time.

d. Conformity for MPO plans and programs Back to top

Each MPO Regional Transportation Plan will go through a conformity analysis to demonstrate that each MPO Plan conforms to the State Implementation Plan (SIP). Each MPO TIP must be consistent with their conforming plan such that the regional emission analysis performed on the plan applies to their TIP. This determination means that the implementation of projects and programs in the MPO TIPs will have a positive impact in the aggregate on air quality. Since the STIP contains the three MPO TIPs without modification, the implementation of the STIP, in aggregate, will also have a positive impact on air quality.

e. Advance construction projects Back to top

Under the conditions provided in 23 U.S.C. 115, and discussed in more detail in 23 CFR 630G, “Advance Construction of Federal-Aid Projects,” a State may request and receive approval to construct projects in advance of the apportionment of authorized Federal-aid funds. Project designations are the same as for regular Federal-aid projects except that from the time a State is authorized to proceed with all or any phase of the work until the advance construction project is converted to a regular Federal-aid project. The prefix letters “AC” are to be used as the first letters of each project authorization, e.g. ACI. Federal statute 23 U.S.C. 115(a) and (b) allow advance construction on certain categories provided the State has obligated its apportionment or obligation authority. The following categories of funds are subject to these provisions: Interstate Substitute, Congestion Mitigation and Air Quality Improvement, Surface Transportation, Bridge, Planning Research, National Highway System, Interstate Construction, and Interstate Maintenance projects may be approved for advance construction.

Section 308 of the National Highway System Designation Act of 1995 (1995 NHS Act, Public Law 104-59) amended 23 U.S.C. 115(c) relating to the amount of advance construction that may be authorized. The NHS Act established a requirement that advance construction projects be on the approved Statewide Transportation Improvement Program (STIP). The STIP covers a period of at least three years and is a financially constrained program, which is not limited to the period of the authorization act. The total amount that may be advance constructed will be limited as follows: The Federal share of all advance construction projects (amount not converted to Federal-aid) cannot exceed the sum of the State’s current unobligated balance of apportionments plus the amount of Federal funds anticipated in the subsequent fiscal years of an approved STIP; An existing advance construction project may be converted to a regular Federal-aid project at any time provided that sufficient Federal-aid funds and obligation authority are available. The State may request a partial conversion where only a portion of the Federal share of project costs is obligated and the remainder may be converted at a later time provided funds are available. Only the amount converted is an obligation of the Federal Government. The project will be identified on the STIP each year a conversion occurs.

The Department uses this advance construction provision to allocate available funds over time, so as to make the best use of these resources to meet the transportation needs of the public, as determined through state and regional planning processes. Every project for which the advance construction procedure is used is identified in the STIP. The amount labeled “Advance Construction” in the funding summary for these projects represents the amount required to complete the funding for the identified phase of work. This amount equals the sum of the amounts shown for “conversion” to federal funding in subsequent years. The advance construction projects in this STIP are programmed so as to synchronize the planned conversion of federal funds with the actual needs of the project, so that no nonfederal funds are actually required. In the event that programmed federal funds are not adequate to meet the actual needs of a phase of work shown in the STIP, the Department will take full responsibility to fund that portion of the phase of work, as authorized under state law in P.L. 1995, c. 108. The Department has capital program authority to meet any such emergent need from the New Jersey Transportation Trust Fund under the capital program item entitled “Unanticipated Design, Right of Way, and Construction Expenses, State.”

The advance construction amounts shown for each individual advance construction project are summed and displayed in Table 1 (pdf 12k).

f. Multi-Year Funding Back to top

The Department sometimes utilizes a procedure called “multi-year funding” for phases of work funded by nonfederal resources. The procedure is similar to the advance construction procedure discussed above for federal-aid projects, but does not require a separate summation of future year commitments. Multi-year funding is permitted under New Jersey law in P.L. 1995, c. 108. Multi-year funded projects are listed in Table 10 (pdf 16k).

g. Development of the STIP Back to top

This Statewide Transportation Improvement Program is the product of months of staff work and deliberations involving the New Jersey Department of Transportation (NJDOT), the New Jersey Transit Corporation (NJ TRANSIT), county and municipal transportation planners and engineers, other transportation implementing agencies, the public and elected officials at the state, county, and municipal levels. The main decision-making forums for selecting projects for this program were the state’s three metropolitan planning organizations:
  • The North Jersey Transportation Planning Authority (NJTPA), covering Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren counties.
  • The Delaware Valley Regional Planning Commission (DVRPC), covering Burlington, Camden, Gloucester, and Mercer counties.
  • The South Jersey Transportation Planning Organization (SJTPO), covering Atlantic, Cape May, Cumberland, and Salem counties.
The process of building the current STIP began in the fall of 2004, with intensive staff work by NJDOT, NJ TRANSIT, and the MPOs.

All projects that were identified as potential candidates for inclusion in the regional transportation improvement programs of each of the three MPOs were subjected to intensive screening to verify project scope, status, schedule, and cost. The resulting “pool” of projects was analyzed independently by NJDOT, NJ TRANSIT, and the MPOs to assign each project a priority based on the extent to which it would advance identified regional and statewide objectives, such as objectives set forth in the state and regional long-range transportation plans, the New Jersey Capital Investment Strategy, air quality objectives, and the broad social and economic goals of the State Development and Redevelopment Plan. NJDOT developed and circulated revenue projections for planning purposes to each of the MPOs, based on the best current assessment of available state, federal, and other funds. NJDOT, NJ TRANSIT and each of the three MPOs entered into intensive discussions to negotiate a list of deliverable transportation projects that best fit the composite statewide and regional priorities within a financially constrained program. These negotiated project lists were used as the basis for publishing the Fiscal Year 2006 Transportation Capital Program by NJDOT on March 15, 2005, and for preparing TIPs for further analysis by each of the MPOs.

h. Congestion Management System Back to top

All projects in this STIP that will result in a significant increase in carrying capacity for single occupant vehicles result from a fully operational Congestion Management System (CMS) in place at each MPO.

i. STIP Modifications and Amendments Back to top

The STIP may be modified or amended at anytime according to the procedures set forth in the Memorandum of Understanding (MOU) for TIP/STIP changes between the three MPOs, NJ TRANSIT, and the NJDOT. These MOUs were fully executed in November of 1999. STIP changes, once approved by the MPOs in concert with either NJ TRANSIT or the NJDOT, are forwarded to the FHWA and/or FTA for their approval, when necessary.

j. Non-Federal Match Back to top

Toll Credits were created in the Transportation Equity Act for the 21st Century (TEA-21) and are to be used as a credit toward the non-Federal matching share of programs authorized by Title 23 (except for the emergency relief program) and for transit programs authorized by Chapter 53 of Title 49.

The amount of credit earned is based on revenues generated by the toll authority (i.e., toll receipts, concession sales, right-of-way leases or interest), including borrowed funds (i.e., bonds, loans) supported by this revenue stream, that are used by the toll authority to build, improve or maintain highways, bridges or tunnels that serve interstate commerce.

The federal government has allowed the State and Local Governments to use toll credits to be part of the 20% local matching funds in regard to transit grants.

This results from the recognition that different modes of transportation are interconnected. Capital expenditures to reduce congestion in a particular corridor benefit all modes in that corridor, be they automobiles, transit buses, or a rail system.

The Urban Core includes several critically important mass transit projects that integrate transit services in northern New Jersey. The Urban Core includes the Newark-Elizabeth Rail Link and Hudson-Bergen Light Rail, among several other projects. The Urban Core was first authorized in the Intermodal Surface Transportation Efficiency Act (ISTEA) in 1991 and reauthorized in The Transportation Equity Act for the 21st Century (TEA-21) in 1998. As provided in Section 3031(b) of ISTEA, NJ TRANSIT may use locally funded projects such as the Kearny and Waterfront Connections, and New Jersey Turnpike projects, as local match for the Hudson Bergen LRT and other Urban Core projects.

k. Financial plan Back to top

Federal law and regulations require that the Statewide Transportation Improvement Program (STIP) be fiscally constrained for the first three years. Specifically, “planned federal aid expenditures” cannot exceed “projected revenues.” The major sources of funding identified in this document are the Federal Highway Administration (FHWA), the Federal Transit Administration (FTA), and the New Jersey Transportation Trust Fund.

NJDOT and its transportation planning partners (NJ TRANSIT, North Jersey Transportation Planning Authority, Delaware Valley Regional Planning Commission, South Jersey Transportation Planning Organization, Federal Highway Administration, and Federal Transit Administration) have developed an estimate of $7.9 billion in available state and federal revenues to support the state’s transportation budget during the three fiscal years from FY 2006 through FY 2008. (For planning purposes, state revenues are estimated on the basis of state fiscal years, which begin on July 1, and federal revenues are estimated on the basis of federal fiscal years, which begin on October 1.) This amount constitutes the funding expected to be available to support the whole FY 2006-FY 2008 Statewide Transportation Improvement Program. These revenue estimates were developed cooperatively by NJDOT, NJ TRANSIT, and New Jersey’s three MPOs, with full consultation with FHWA and FTA, in a series of meetings in December 2004.

Tables 1 through 3 set out these amounts by year and by funding category and compare them to the actual amounts programmed in the TIPs and STIP. Following are the revenue assumptions used in developing this table:
  1. Because federal revenue estimates were required to be developed in the absence of a long-term federal authorization act, they were based on an extrapolation of historic authorization levels. Dollar amounts shown in federal funding categories are based, except as otherwise noted below, on past federal-aid apportionment tables or equivalent data obtained from the Federal Highway Administration (FHWA), Federal Transit Administration (FTA), and Federal Aviation Administration (FAA), as appropriate. It should be noted that the apportionment tables are greater than the obligation authority that will ultimately be provided.
  2. At the moment, the Transportation Trust Fund does not have sufficient funds to fully fund projects in FY 2007 and FY 2008. NJDOT and its transportation planning partners believe that there is good reason to expect the Legislature to replenish the Transportation Trust Fund and have therefore agreed to project Trust Fund levels at $1.2 million in FY 2007 and FY 2008.
  3. Funds in the Surface Transportation Program (STP) category are broken down into the allocations and minimums required by federal law.
  4. “High Priority” funds (and some remaining “demo” funds) are shown only as authorized by federal legislation.
  5. The New Jersey Transportation Trust Fund provides $1.2 billion in FY 2006 to support the Capital Program. For programming purposes, it is assumed that NJDOT’s share of the Transportation Trust Fund is $671 million for FY 2006, FY 2007 and FY 2008. NJ TRANSIT’s share of the Transportation Trust Fund is $534 million in FY 2006, FY 2007 and FY 2008.
  6. In FY 2006, $75 million of FHWA CMAQ funding is to be “flexed” to NJ TRANSIT; also $75 million is projected to be “flexed” in FY 2007 and FY 2008.
  7. Beginning in FY 2006, NJDOT will begin using a federal innovative financing program (Grant Anticipation Revenue Vehicles, or “GARVEEs”) to finance portions of its high-cost bridge program. NJDOT is facing a critical need to fund a series of these bridges – each costing more than $100 million to build – over the next several years. The projects are all eligible for federal aid, but due to their size would consume a major portion of the capital program in the year they are ready for contract award. GARVEE bonds are a mechanism offered by FHWA to address this type of problem. GARVEEs are in use in 22 states. Under this mechanism, FHWA authorizes a project agreement that reimburses the state for project debt service over a number of years rather than construction outlays. The state agency in turn issues GARVEE bonds which provide the funds to cover construction outlays. Future federal appropriations are pledged to pay debt service on the GARVEE bonds. GARVEE bond maturities are flexible, but a typical payback period is 12 years, which corresponds to two standard six-year federal authorization programs. The STIP assumes that GARVEE financing will be used on three projects within the three-year funding window: Route 52 Contract A (FY 2006), Route 139 Contract 3 (FY 2007), and Route 52 Contract B (FY 2008). Route 52 Contract A has been selected as the first project for GARVEE funding because of the poor condition of the four bridges on the causeway, the delay in construction that would be caused by waiting for conventional financing, the cost and annoyance of continual emergency repairs (including large pieces of concrete falling from the structures), and the importance of the causeway as an emergency evacuation route. Use of the GARVEE mechanism will enable these important projects to go forward without a major impact on the use of federal funding in any one year and without a massive dislocation in the normal share of federal funding available in each of three MPO areas in the state. Although GARVEE funding requires the assumption of some debt over time, well under 10 percent of New Jersey’s expected annual federal funding will be encumbered under the proposed plan, assuming all three projects go forward as programmed. The financing plan will also require debt service payments. However, the cost of debt service should be more than offset by avoidance of the costs of delay: recurring expenditures for maintenance and the possible increase in construction contract costs. GARVEE bonds are a proven financing mechanism and NJDOT expects no difficulty in the marketing of these instruments. However, in order to provide additional reassurance, NJDOT has identified resources from statewide Trust Fund programs (Unanticipated Design, Right of Way, and Construction Expenses, State and the Resurfacing Program) as emergency backing in the range of $50 to $70 million a year.
Because New Jersey is classified as a “non-attainment” area with regard to air quality, certain project funding must meet a federal standard of “available or committed” revenue in FY 2006 and FY 2007 to be considered fiscally constrained. These projects are those which are funded with federal resources and all other “projects of regional significance,” regardless of funding source. All federal funds in FY 2006 and FY 2007 are either previously authorized (in the case of High Priority projects) or based on an extrapolation of previous funding (in the case of formula funds) and are therefore considered available. All Trust Fund funding for FY 2006 has been appropriated, and is therefore available. In FY 2007, a total of $81.6 million is programmed for NJDOT state-funded projects of regional significance. This amount is covered by a minimum annual amount of $114.5 million, not required to meet current debt service payments, which is dedicated for transportation purposes from various sources under state law NJSA 27:1B-20(c). NJ TRANSIT has one project in FY 2007, the River Line LRT, which is a project of regional significance. Funding required for this project has been assumed as a debt of the New Jersey Transportation Trust Fund Authority and is covered by current revenue. Various projects of New Jersey’s transportation authorities are also classified as projects of regional significance. They are funded by authority revenues.

It should also be noted that the state of New Jersey annually appropriates approximately $78 million to NJDOT for operation and maintenance purposes. These funds are adequate for maintenance and operation of the system. In addition, both federal and state funds are allocated to NJDOT’s operations and maintenance forces for betterments to the system.

The State of New Jersey has shown a significant commitment to public transportation through operating support from the State’s general fund. Since the inception of NJ TRANSIT, the State has contributed over $5.1 billion of operating assistance, over $2.4 billion in the last ten years alone. During this last ten-year period, the State also has chosen to supplement that operating assistance with over $1 billion of funding allocated to transportation operations from the State’s general fund contribution to the Transportation Trust Fund. This TTF contribution to operations is approximately $158.8 million annually, and represents a continued strong commitment from the State to fund public transportation. The following below details those projects for FY 2007.

NJ TRANSIT FY 2007 TTF Operations
  Program FY 2007
T44 Amtrak Agreements
T32 Building Capital Leases
T08 Bus Support Facilities & Equipment
T09 Bus Vehicle and Facility Maintenance/Capital Maintenance
T33 Railroad Associated Capital Maintenance
T34 Rail Capital Maintenance

If, in the unlikely event that the TTF reauthorization is not completed by FY 2007, NJ TRANSIT operations will continue to be funded through the State’s general fund, as it has been in the past, including the $158.8 million currently provided through the TTF.

NJ TRANSIT also has approximately $114 million of debt service paid for through TTF. The current structure of TTF is sufficient to retire this debt. Therefore, these funds are committed or available. The chart below details FY 2007 TTF that represents debt service.

NJ TRANSIT FY 2007 TTF Debt Service
  Program FY 2007
T111 Bus Acquisition Program
T95 Newark City Subway
T107 River Line LRT
T112 Rail Rolling Stock Procurement

The State’s $23.6 billion general fund, although subject to budget constraints as is every other state and federal program, has no legislation making it impossible to use general fund appropriations for public transportation. The state recognizes the importance of public transportation, especially in a state as densely populated as New Jersey, and the commitment will continue.

With two notable exceptions, federal and state funds are not “allocated” to—that is, required to be spent within the boundaries of—the state’s three MPOs. The first exception is STP funds, some of which are required under a formula in federal regulations to be allocated to MPOs. These allocated funds are shown in the following tables as “STP-NJTPA,” “STP-DVRPC,” and “STP-SJTPO.” The second exception is Trust Fund state aid funds, which are allocated on a county-by-county basis under a statutory and regulatory formula.

The actual budgeting of federal and state funds for projects within the MPO areas is a product of the development of the three regional transportation improvement programs, the Statewide Transportation Improvement Program, and legislative approval of the annual capital program. On a statewide basis, the cost of projects programmed for a particular fiscal year must equal the planned resources for that year. Each project must also be assigned to a funding category that is appropriate for the project and within which adequate funding is available. From year to year there may be significant variations in the amount of funds actually programmed within an MPO area, as needs and specific project implementation schedules dictate. These programming decisions are made on a cooperative basis with the participation of NJDOT, NJ TRANSIT, local government representatives, and other agencies (all of whom are members of the MPOs), the State Legislature, citizens’ groups, and the general public.

For the purpose of defining a project line item estimate in the STIP, each item includes an estimate of independent contractor costs to produce the project, an estimate of implementing agency costs anticipated in support of the development and delivery of the project, and any other payments to third parties in matters of right-of-way and utility relocations. The implementing agency costs include activities such as inspection, testing and equipment along with salary costs.

Table 4 shows the overall distribution of funds within the STIP by MPO.

Tables 5 through 8 provide more detailed breakdowns of expenditures by funding category for each of the three MPOs and for statewide programs.

l. NJ TRANSIT Federal funded projects with a State component/regionally significant State funded projects Back to top

Federally funded projects with a state component or regionally significant projects are identified in Section IV with a footnote. Federal regulations require that federally funded projects with a State component/regionally significant state funded projects have funding “available or committed” for two years of the STIP (in this case FY 2006 & FY 2007).

There are three federally funded projects with a state component: Hudson Bergen MOS I & II and the Track Program. In the case of Hudson Bergen MOS I & II, the state component is lease payments for the Light Rail Vehicles. These are existing obligations of the TTF and are covered by existing gas tax revenues for the life of the debt repayment. Therefore, these funds are available or committed. In the case of the track program, there is no fixed scope of work, (i.e. the program is as large as funding provides). Therefore, there is no impact to the “completion” of the track program if state revenues do not become available in FY 2007. (Note: FY 2006 State funds in the track program are already appropriated and are thus “available”). Additionally, there is one state funded project designated as regionally significant, the River Line light rail system. The River Line was completed in 2004; however, NJ TRANSIT is making payments on debt service through FY 2019. Funding for the River Line project is provided by debt service state funding as described above, that is, it is an existing debt of the TTF covered by the existing gas tax. Therefore, the TTF funding needed to make payments on this “regionally significant” project is “available or committed.”

m. Financing transition projects Back to top

“Transition” projects are projects which are programmed for implementation in the current (FY 2005-07) TIP/STIP but which, for either scheduling or obligation authority limitation reasons, are not actually available for implementation until after October 1, 2005, when the planned (FY 2006-08) TIP/STIP takes effect. To provide a smooth transition between one TIP/STIP period and the next, New Jersey’s MPOs and appropriate state and federal agencies have agreed that the first 60 days after approval of the FY 2006-08 STIP will be considered a transition period, in which projects included in the FY 2005-07 STIP will be considered eligible for federal funding actions, even though they are not included in the FY 2006-08 STIP. This list of “Transition” projects is found in Section VI of this document and is based on current schedule information.

n. How to use this document Back to top

The individual descriptions, found in Sections III and IV, provide detailed information for each project or program in the five-year plan. The top portion of each project lists the project/program name (route and section) as well as the location. The NJDOT reference number is assigned at the beginning of a project and remains with that project until its completion. The TIP reference number refers to the identification number assigned by the MPO(s). Other information contained within the description includes county, municipality, Metropolitan Planning Organization (MPO) jurisdiction, mileposts (for state highway projects), structure number (for bridge projects), the project sponsor, a detailed description of the project, and program category. An explanation of the program categories can be found in the Glossary, located in Section VII of this document.

The columns at the bottom of each record indicate the anticipated funding schedule for each project/program. The phases of work and types of funds are further defined in the Glossary, located in Section VII.

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  Last Updated:  November 16, 2005