Wise Young
02-06-2006, 05:23 AM
http://www.bergen.com/page.php?qstr=eXJpcnk3ZjczN2Y3dnFlZUVFeXk2MDcmZmdi ZWw3Zjd2cWVlRUV5eTY4NzUxMTEmeXJpcnk3ZjcxN2Y3dnFlZU VFeXky
Corzine's budget ax may hit buzz saw
Sunday, February 5, 2006
By JOHN P. McALPIN
TRENTON BUREAU
Governor Corzine has warned that he will find $6 billion to square up his first state budget as governor -- even if it makes him unpopular.
"The games are over," he said in his inaugural speech on Jan. 18. "New Jersey must put its fiscal house in order."
But as the former Wall Street executive and his advisers begin cobbling together the budget they will present March 21, they are expected to face significant legal, political and practical hurdles in their search for savings.
<snip>
The budget's biggest expense is the $9 billion that goes to support public schools, with two-thirds of that going to some of the state's poorest towns. Corzine can't cut back on paying those poorer schools because the money is mandated by the state Supreme Court's Abbott v. Burke decisions.
<snip>
Corzine can cut state aid to most middle-class and wealthy public schools. But if he does, he'll likely hear howls from public officials that he will force them to raise property taxes. Wealthy districts receive relatively small amounts of school aid, which would not likely yield significant savings for the budget.
<snip>
Polls say most residents want Corzine to cut state government. The cost of running the state is now nearly $6 billion, up almost 25 percent from four years ago.
But the biggest increases in state government have involved homeland security and the agency charged with protecting endangered children. The state payroll since 2002 has grown by nearly 6 percent. Of that, more than half of the new employees -- about 2,400 workers -- were hired by the state police or the Division of Youth and Family Services.
Property tax rebates have been cut before. Corzine could save $1.1 billion by gutting the popular program entirely, but he promised throughout his campaign to not only save the rebates but increase them more than 40 percent over the course of his term. Seniors now see a maximum rebate check of $1,200, and other property owners are sent an average of $350, down from $691 in 2004.
Still more of the budget is locked up in federally mandated programs such as Medicaid and Medicare benefits. Other outlays, such as the increased budget for DYFS, are required by court orders.
<snip>
Legislators are already looking to make cuts. Assembly Speaker Joseph Roberts, D-Camden, announced last week that he would post no bill that raises spending for any vote in that house. The Assembly Budget Committee will again push every state department for explanations on even the smallest of spending increases.
<snip>
Corzine does have the option of raising taxes.
Former Gov. James E. McGreevey raised taxes on corporations, but said he was doing it as a matter of fairness after relentlessly pushing the notion that major businesses were paying only several hundred dollars a year. It also did not affect average New Jersey residents, unlike former Gov. Jim Florio's unpopular $2.8 billion package of tax increases in 1990 that included an increase in the sales tax, among others.
Advisers have suggested that Corzine expand the sales tax to items now exempt, such as clothing and Internet downloads. Others have floated the idea of taxes on 401(k) retirement plans.
<more>
Corzine's budget ax may hit buzz saw
Sunday, February 5, 2006
By JOHN P. McALPIN
TRENTON BUREAU
Governor Corzine has warned that he will find $6 billion to square up his first state budget as governor -- even if it makes him unpopular.
"The games are over," he said in his inaugural speech on Jan. 18. "New Jersey must put its fiscal house in order."
But as the former Wall Street executive and his advisers begin cobbling together the budget they will present March 21, they are expected to face significant legal, political and practical hurdles in their search for savings.
<snip>
The budget's biggest expense is the $9 billion that goes to support public schools, with two-thirds of that going to some of the state's poorest towns. Corzine can't cut back on paying those poorer schools because the money is mandated by the state Supreme Court's Abbott v. Burke decisions.
<snip>
Corzine can cut state aid to most middle-class and wealthy public schools. But if he does, he'll likely hear howls from public officials that he will force them to raise property taxes. Wealthy districts receive relatively small amounts of school aid, which would not likely yield significant savings for the budget.
<snip>
Polls say most residents want Corzine to cut state government. The cost of running the state is now nearly $6 billion, up almost 25 percent from four years ago.
But the biggest increases in state government have involved homeland security and the agency charged with protecting endangered children. The state payroll since 2002 has grown by nearly 6 percent. Of that, more than half of the new employees -- about 2,400 workers -- were hired by the state police or the Division of Youth and Family Services.
Property tax rebates have been cut before. Corzine could save $1.1 billion by gutting the popular program entirely, but he promised throughout his campaign to not only save the rebates but increase them more than 40 percent over the course of his term. Seniors now see a maximum rebate check of $1,200, and other property owners are sent an average of $350, down from $691 in 2004.
Still more of the budget is locked up in federally mandated programs such as Medicaid and Medicare benefits. Other outlays, such as the increased budget for DYFS, are required by court orders.
<snip>
Legislators are already looking to make cuts. Assembly Speaker Joseph Roberts, D-Camden, announced last week that he would post no bill that raises spending for any vote in that house. The Assembly Budget Committee will again push every state department for explanations on even the smallest of spending increases.
<snip>
Corzine does have the option of raising taxes.
Former Gov. James E. McGreevey raised taxes on corporations, but said he was doing it as a matter of fairness after relentlessly pushing the notion that major businesses were paying only several hundred dollars a year. It also did not affect average New Jersey residents, unlike former Gov. Jim Florio's unpopular $2.8 billion package of tax increases in 1990 that included an increase in the sales tax, among others.
Advisers have suggested that Corzine expand the sales tax to items now exempt, such as clothing and Internet downloads. Others have floated the idea of taxes on 401(k) retirement plans.
<more>