Doofus1
07-22-2009, 04:13 PM
Well, Corzine can't be happy that the non-partisan Office of Legislative Services announced that next year's state budget is already $8 Billion in the hole.
What's stunning is that projected aid to schools, i.e., money to Abbotts Districts, will increase by $500 million from this year and pension contributions will increase by $700 million. These was included in the original report and then omitted form subsequent reports (interesting in and of itself). Taxes can't be raised enough to cover just those increases, let alone the other gaping holes in the budget. What is going to happen to this state?
http://www.nj.com/news/ledger/jersey/index.ssf?/base/news-14/1248231914151030.xml&coll=1
Republican gubernatorial candidate Chris Christie yesterday said Gov. Jon Corzine should quit his re-election bid in "shame" after a new nonpartisan report showed the state faces an $8 billion structural deficit for the next fiscal year. . . .
He gave us a whole song and dance about how he was responsibly managing New Jersey's budget," Christie said. "All he did was take Barack Obama's stimulus money, continue to spend as he spent for the four years he's been there and leave the problem for the next administration. The only good news for him is that he won't be there to deal with it."
Corzine spokesman Sean Darcy brushed aside Christie's comments.
"This is laughable coming from someone that has proudly talked about how he has no answers as a campaign strategy," Darcy said. "Christie's various proposals would blow a hole in the state budget and his refusal to accept $2 billion in federal funding for education would create a $2 billion increase in property taxes for New Jersey residents."
The shortfall was detailed by the Office of Legislative Services, the Legislature's nonpartisan research arm. It was requested by Senate Minority Leader Tom Kean Jr. (R-Union), who called the potential deficit "the largest in history."
OLS calculated a $8 billion shortfall by counting all mandatory increases in state funding and assuming all programs currently in the budget would be included next year. It also reported the Unemployment Trust Fund deficit could top $2.2 billion.
But David Rosen, OLS' chief budget official, wrote "given the nature of this speculative inquiry, our conclusion is one with which reasonable people can disagree."
A May OLS analysis also showed state revenues were projected to remain at or below 2006 levels for the next few budget years as a result of the bad economy, while the cost of pension obligations and education aid would rise.
And Rosen said the tax increases and other budget changes Corzine has billed as one-time fixes this year will make the future deficit even wider if they aren't renewed.
Two weeks ago, another OLS memo became political fodder. It said New Jersey could have missed out on nearly $5 billion in federal stimulus funding if the state declined to take money with conditions attached by the federal government.
What's stunning is that projected aid to schools, i.e., money to Abbotts Districts, will increase by $500 million from this year and pension contributions will increase by $700 million. These was included in the original report and then omitted form subsequent reports (interesting in and of itself). Taxes can't be raised enough to cover just those increases, let alone the other gaping holes in the budget. What is going to happen to this state?
http://www.nj.com/news/ledger/jersey/index.ssf?/base/news-14/1248231914151030.xml&coll=1
Republican gubernatorial candidate Chris Christie yesterday said Gov. Jon Corzine should quit his re-election bid in "shame" after a new nonpartisan report showed the state faces an $8 billion structural deficit for the next fiscal year. . . .
He gave us a whole song and dance about how he was responsibly managing New Jersey's budget," Christie said. "All he did was take Barack Obama's stimulus money, continue to spend as he spent for the four years he's been there and leave the problem for the next administration. The only good news for him is that he won't be there to deal with it."
Corzine spokesman Sean Darcy brushed aside Christie's comments.
"This is laughable coming from someone that has proudly talked about how he has no answers as a campaign strategy," Darcy said. "Christie's various proposals would blow a hole in the state budget and his refusal to accept $2 billion in federal funding for education would create a $2 billion increase in property taxes for New Jersey residents."
The shortfall was detailed by the Office of Legislative Services, the Legislature's nonpartisan research arm. It was requested by Senate Minority Leader Tom Kean Jr. (R-Union), who called the potential deficit "the largest in history."
OLS calculated a $8 billion shortfall by counting all mandatory increases in state funding and assuming all programs currently in the budget would be included next year. It also reported the Unemployment Trust Fund deficit could top $2.2 billion.
But David Rosen, OLS' chief budget official, wrote "given the nature of this speculative inquiry, our conclusion is one with which reasonable people can disagree."
A May OLS analysis also showed state revenues were projected to remain at or below 2006 levels for the next few budget years as a result of the bad economy, while the cost of pension obligations and education aid would rise.
And Rosen said the tax increases and other budget changes Corzine has billed as one-time fixes this year will make the future deficit even wider if they aren't renewed.
Two weeks ago, another OLS memo became political fodder. It said New Jersey could have missed out on nearly $5 billion in federal stimulus funding if the state declined to take money with conditions attached by the federal government.