In the Press: GOP sees no need to cut tax rebates

May 30, 2008

Contact: Brad Schnure / 609-292-5199
A More Affordable NJ

Published in The Record on May 30, 2008

BY JOHN REITMEYER

TRENTON BUREAU - Republican legislators are urging their Democratic counterparts to ditch Governor Corzine’s proposed budget and accept a GOP plan that restores tax rebates and municipal aid.

The Republicans’ budget proposal, put forward Thursday, also calls for debt relief and investment in transportation, mimicking the goals of Corzine’s toll-road plan without his hefty toll hikes.

Assembly Minority Leader Alex DeCroce, R-Morris, called the GOP effort “a foundation for a more affordable New Jersey.”

It has been sent to Democratic legislative leaders, Corzine and state Treasurer Dave Rousseau.

Corzine introduced a fiscal 2009 budget in February that slightly reduced state spending to $33.3 billion. He proposed cutting tax rebates, as well as aid to municipalities, colleges and hospitals, and reducing the size of state government and the workforce.

The GOP accepts Corzine’s premise that the Legislature needs to reduce spending this year to offset years of irresponsibility, but Republicans disagree with him on how to accomplish that goal, said Senate Minority Leader Tom Kean Jr., R-Union.

“We think there needs to be improvement,” Kean said. “That’s what this [plan] does.”

The Republicans’ proposal leaves the property tax rebate program untouched and puts back $150 million for municipal aid. To compensate for those increases, their budget ax would hit a number of government programs, slashing aid sent to cities, urban counties and the state’s poorest school districts.

The GOP plan also targets politically appointed state employees and overtime abuse. The number of days off state employees get for holidays would be cut and raises would be frozen for anyone making over $80,000.

The retirement age would also increase, as would the number of years needed to calculate state pensions under the GOP plan. But employees would not be asked to retire early – something Corzine has proposed.

To counter Corzine’s plan to reduce debt and pay for transportation improvements with significant toll hikes, the Republicans are proposing a constitutional amendment that would dedicate $500 million annually in fees collected by the Motor Vehicle Commission to the Transportation Trust Fund.

That would extend the life of the fund, which pays for road and bridge projects throughout the state, and also keep alive plans for another Hudson River tunnel, they said.

It would also offset a possible gas tax hike that some Democratic legislators are proposing to raise more money for road and bridge projects.

“There’s no need to raise taxes,” said Senate Budget Committee member Steven Oroho, R-Sussex. “There’s no need to raise tolls.”

But Corzine said the GOP plan lacks specifics and looks more like spending plans of past legislatures that got the state in its current financial predicament.

“This is all make-believe math,” Corzine said. “This is the same sort of gimmickry and trickery that has put the state in the fiscal mess we now find ourselves trying [to] deal with.”

The Legislature’s Democratic leaders, however, seemed more open to the ideas floated by the Republicans.

“We intend to pore through all these suggestions, giving a serious look at those that are attached to legitimate funding cuts,” said Senate President Richard J. Codey, D-Essex.

“No idea that potentially could help New Jersey’s taxpayers will be rejected out-of-hand,” said Assembly Speaker Joe Roberts, D-Camden.

The Legislature must pass a balanced budget by July 1.