Feb 25, 2008 2:10 pm US/Eastern
Corzine Readies N.J. Budget Plan Replete With Cuts
Promises To Freeze Spending For Fiscal Year To Revamp State Finances
TRENTON (AP) ―
Gov. Jon S. Corzine worked Monday to put the finishing touches on a budget plan expected to slash state programs, with property tax rebates, state workers, state parks and welfare grants among many possible cuts.
The governor is to unveil his budget to the Legislature Tuesday morning, and promised to freeze spending in the plan for the fiscal year starting July 1 as part of his plan to revamp state finances.
Corzine said the freeze will mean about $2.5 billion in budget cuts to offset rising costs.
He also wants to significantly increase highway tolls to pay state debt and fund transportation, and limit future state spending and borrowing, but those moves won't be part of Tuesday's budget plan.
"Gov. Corzine will present a lean, responsible plan that shrinks government and protects property taxpayers and New Jersey's most vulnerable as much as possible," Corzine spokeswoman Lilo Stainton said.
Among the possible cuts -- early retirements and layoffs for state workers to chop about 4,000 jobs; eliminating the agriculture, commerce and personnel departments and property tax rebates for households that earn more than $150,000; reduced hours at parks and motor vehicle agencies; funding cuts for hospitals, municipalities, welfare recipients, tenant tax rebates and state colleges and a Medicaid co-payment.
That has lawmakers, farmers, environmentalists and others worried, but the plan is being welcomed by a leading state business group, the New Jersey Business & Industry Association.
"Cutting spending is essential for getting New Jersey's finances in order," said Philip Kirschner, the NJBIA's executive director. "Our budget problems are not caused by a lack of revenue, but by overspending. A flat-funded budget would be the first step back to financial sanity."
Some lawmakers worry the plan will hit too hard. Sen. Shirley Turner, D-Mercer, questioned whether laying off workers would damage the state economy.
"You don't save money," Turner said. "You just disrupt people's lives."
Senate Majority Leader Stephen Sweeney, D-Gloucester, said legislators should back the Democratic governor's plan.
"The governor is going to introduce a budget that we can afford," Sweeney said.
Republicans wants spending cuts to fix state finances, but don't plans to slash rebates.
"What we will not do is be a party to any plan that would lower or eliminate direct property tax relief for middle class families," said Assembly Minority Alex DeCroce, R-Morris.
New Jersey has the nation's highest property taxes, at $6,330 per homeowner, or twice the national average. The rebates averaged $1,051 last year.
"Republican senators are ready to move forward with forging a state budget that cuts spending without taking more from the pockets of working families," said Senate Minority Leader Tom Kean Jr., R-Union.
Bill Dressel, executive director of the New Jersey League of Municipalities, said property tax relief most be a priority.
"Failure to fully fund municipal property tax relief will indicate that officials at the state level have clearly lost that focus," he said.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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