Corzine also expressed concerns about New Jersey'scompetitiveness vis-à-vis neighboring states, admitting that whenit comes to tax structure, "we're at a disadvantage." Add to thatchronic congestion issues and a dated infrastructure and, "I couldtalk on and on about the challenges," he said.

His remarks came against a backdrop of a state fiscal crisis andhis own plan to generate cash from substantial toll hikes on thestate's superhighways coupled with substantial budget cuts,recently revealed. All that said, "the state has great strengths,"Corzine told NJ-Naiop attendees, "and the biggest strength islocation. We have an incredible location, great demographics andincredible advantages to build on."

But the state "needs financial restructuring," he said. Andwhile his proposed toll hikes have not been well received, nothingis etched in stone, including possible increases in the gasolinetax. He admitted that the latter "is not my favorite choice." Hisfinancial restructuring plan comes down to three points: keepingthe state budget at the $32.5-billion level, limiting spending inthe future, and limiting state debt, currently in the $115-billionrange.