Chris Christie Defends 23-Cent Gas Tax Hike, Saying 'We're Out Of Money' [VIDEO]

Gov. Chris Christie defended his proposed 23-cent gas tax hike for New Jersey drivers on Wednesday, saying the state is "out of money" to pay for bridge and road improvement.

Christie, whose plan passed the Assembly Tuesday and faces a Thursday Senate vote, called on the entire state Legislature to pass the proposal that includes a 1 percent reduction in the state sales tax, which critics say could blow a $1.7 billion hole in the budget.

The governor shot back at state Senate critics who ripped the plan, saying he "met the deadline" for replenishing the state's Transportation Trust Fund by July 1 and "now it's time for them to do the work" and pass it.

Democratic Sen. Loretta Weinberg, the majority leader, said during a Statehouse press conference Wednesday that she can't support a plan that cuts $1.7 billion in revenue from the $34.8 billion state budget. She said the Democratic Senate leadership is "united" in opposing the plan.

Read more: Fate Of Christie-Backed 23-Cent Gas Tax Hike Is Uncertain, Senate Democrats Say

Christie, speaking during a town hall meeting and at a Wednesday press conference, noted the state's gas tax has not been raised since 1988, and New Jersey has the second lowest gas tax in America. He said it's "shocking that we have a tax that low, but we do."

By fixing the roads, Christie said the average New Jersey driver would see a potential reduction in car repair costs of $600 while they'll pay $100 more a year for gas, saying: "We need to spend this money to repair our roads and bridges."

"Here is the problem, though: We’re out of money. We’re out of money," Christie said. "I cannot borrow any more money to try to do roads because all of the money that I collect in gas tax now, starting on July 1, is spent to pay for the debt that we’ve run up to pay for the roads over the last 25 years. So we needed to come up with some kind of solution."

Read more: N.J. Lawmakers Pass Christie-Backed 23-Cent Gas Tax Hike, Set To Take Effect Friday

The gas tax funds the Transportation Trust Fund, which pays for capital reconstruction and repair of roads and bridges, many of which have fallen into disrepair over the past 20 years. In a 2006 state study, more than half of the state's drawbridges received low safety ratings.

The 84-year-old Pulaski Skyway, whose design is considered unsafe, is currently being repaired and replaced. The $1.5 billion project is expected to be completed by 2020.

The TTF is supposed to go bankrupt on Friday, the day the gas tax hike is supposed to take effect.

The state's gas tax would increase from 14.5 cents per gallon to 37.5 cents per gallon under the plan, while the sales tax would shrink from 7 to 6 percent.

Christie said he would only consider a gas tax increase if there was "tax fairness."

"What I’ve said to them is, OK, I’ll consider an increase in the gas tax, but there has to be tax fairness for people," he said. "If we’re giving them a tax increase in one area because we think that area is important — having good roads, good bridges, good mass transit systems — then we need to give them a tax cut someplace else."

Senate lawmakers say they prefer a proposal that would gradually phase out the state estate tax. That cut would cost about $120 million during the next fiscal year and $512 million by fiscal 2021, according to lawmakers.

New Jersey's gas price average was at $2.10 this week, according to AAA Mid-Atlantic.

"What I said was, listen, the people who are paying an increased gas tax are the very same people who are paying the sales tax, except about 20-30 percent of the gas tax is paid by out-of-staters," he said. "So I said we need to have tax fairness. So I say, I’ve advocated, let’s reduce the sales tax from 7 percent to 6 percent. Everybody pays that."

On Jan. 1, 2017, the sales tax would go from 7 to 6.5 percent, under the plan. On Jan. 1, 2018, the sales tax will go from 6.5 to 6 percent.

The vote came in the midnight hour Tuesday, with little to no warning after a day of backroom talks between Christie and legislative leaders such as Assembly Speaker Vincent Prieto, according to lawmakers.

Observers said the bill came as a bit of a surprise since there were no experts who testified, and no committee held a hearing on the plan. A bill wasn't even ready until shortly before it was voted on at 12:30 a.m.

Prieto, a Democrat from Hudson, said the legislative package would restore funding to New Jersey’s beleaguered Transportation Trust Fund and reduce the state’s regressive sales tax.

The amended legislative package, sponsored by Prieto, sets out an eight-year, $16 billion capital transportation program for the state’s highway and rail infrastructure.