NJ Transit's fancy financing
March 21, 2004
By Jennifer Moroz and Frank Kummer, Philadelphia Inquirer
Before state taxpayers even had a chance to try out their $1.1 billion light-rail system last Sunday, NJ Transit officials were considering selling the line's sleek European rail cars to a foreign bank in a complex financial deal.
If the state gets its way, that moneymaking proposal to sell, and then lease back, the trains on South Jersey's new River Line could still become reality.But similar deals across the country have been put on hold amid a crackdown on what local government agencies call creative financing but what federal officials say is nothing more than a tax scam.