Shortfall Could Reach $1 Billion This Budget Year
Senate Republican Budget Officer Anthony Bucco today called on Senate Budget and Appropriations Chair Barbara Buono to reconvene the committee immediately to confront New Jersey’s declining revenue collections.
“It is imperative that the budget committees of both houses reconvene immediately in order to implement budget savings to cover this historic plunge in state revenues. At the current rate of decline, 3.1 percent, the shortfall this year could reach $1 billion.
“The committees must reconvene now to meet our constitutional obligation to generate a balanced budget. Any delay in dealing with this critical situation would reduce the options for solutions and add unnecessary pain to taxpayers.
“The need for immediate action is compounded because the non-partisan Office of Legislative Services is projecting an $8 billion shortfall for Fiscal Year 2011. The incoming Governor is required to sign the FY 2011 budget in just nine months.
Governor Corzine must take the following action immediately:
- Immediately impose a furlough on authorities that are subsidized by the State. Why are subsidized authorities like the Sports and Exposition Authority being given a pass while everyone else is furloughed?
- Freeze remaining Special Municipal Aid Program funds and clamp down on future awards. Just last week, $12 million was given to Newark without even first obtaining an audit for the city which is now one year overdue. There is no accountability and there are no written standards for this program.
- Freeze remaining Extraordinary Aid Funds for Fiscal Year towns. 30-50 Fiscal Year towns are about to be given awards without any objective standards or guidance and are in line for a $4 million increase while the other 500 towns in this state received aid cuts.
- Stop making exceptions to the hiring freeze for nonessential employees. Over the past year, Corzine has made numerous exceptions to his hiring freeze for even his own office and in various departments’ management positions.
- Freeze all discretionary grant programs unless they are essential for job growth/retention or life-safety matters – that includes grant programs that are nice in better times to pay for folk arts apprenticeships and local road beautification projects unrelated to basic maintenance.
- Start putting higher premium-sharing on nonunion State employees’ health benefits so the payments are in line with the private sector. Right now, premium sharing is about one fourth of what it is in the private sector and while changes cannot be made unilaterally to union employees, changes can be made for nonunion positions immediately.
- Impound the pay and/or benefits for political patronage appointments on commissions and boards that meet once per month. Volunteers run most boards and there is no reason why volunteers cannot handle the duties of a board like the Board of Cosmetology and Hairstyling.
- Accept the recommendations of former member of the Parole Board who has pointed out wasteful spending that should be brought under control.
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July 6, 2009
