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1-21-10'N.J.'s Christie won't rule out layoffs, furloughs to close unexpected $1.2B deficit'
The Record - STATE HOUSE BUREAU/Recor & Star Ledger- Fast facts The eight executive orders Governor Christie signed Wednesday carry the weight of law. Christie said they will...

The Record

 

 

 

N.J.'s Christie won't rule out layoffs, furloughs to close unexpected $1.2B deficit

Wednesday, January 20, 2010
Last updated: Wednesday January 20, 2010, 6:53 PM

BY JOHN REITMEYER AND ELISE YOUNG

State House Bureau

STATE HOUSE BUREAU

Fast facts

The eight executive orders Governor Christie signed Wednesday carry the weight of law. Christie said they will:

  • Temporarily suspend 154 proposed rules that are “unworkable, overly proscriptive or ill-advised.”
  • Examine regulations that hinder business growth.
  • Establish a panel to review rules “that are a burden to New Jersey’s economy.”
  • Limit state agencies’ ability to impose unfunded mandates on local governments.
  • Form the Governor’s Council of Economic Advisers.
  • Allow casinos to operate amid a government shutdown.
  • Force the state to publish more detailed budget information.
  • Make labor unions subject to the same pay-to-play laws that affect businesses.

By the numbers

Labor unions now will have to follow New Jersey campaign finance rules that previously applied only to businesses, under an executive order issued Wednesday by Governor Christie. The rules forbid donations for state elective office from business entities with state contracts in excess of $17,500. Here are some of the biggest contributors from 2007 to 2009.

NJEA: $915,675

CWA affiliates: $600,160

AFL-CIO affiliates: $62,950

Source: New Jersey Election Law Enforcement Commission

Governor Christie and his newly formed economic staff on Thursday will dissect what they called an unexpected $1.2 billion budget gap that could lead to layoffs and furloughs in the next several weeks.

The governor Wednesday signed eight executive orders to reduce labor unions’ political donations, temporarily freeze some state spending, encourage business growth and formalize other campaign promises. And he took a giant step from Tuesday’s change-of-leadership ceremonial pomp — when he had led a sportsmanlike round of applause for Gov. Jon S. Corzine — to express contempt for the incumbent Democrat he defeated in November.

“They wanted to drop this egg on me on my first day on the job,” said Christie, referring to the $1 billion-plus shortfall.

He accused Corzine’s Treasury officials of withholding revenue projections for the remainder of the current fiscal year, which runs through June 30, and said his administration learned Tuesday afternoon of a “tax revenue shortfall” of about $1.2 billion, or about 4 percent of the $29 billion budget passed in June 2009.

Corzine denied that he covered up a shortfall, and said his administration left a surplus fund of about $500 million after making spending adjustments. Those changes, his staff said, offset revenue collection shortfalls from earlier months.

“After the election, Governor Corzine took steps to close a projected $1.127 billion budget gap,” Corzine spokesman Joshua Zeitz said Wednesday. “Because of these measures, Governor Christie inherited a $496 million surplus.”

Christie said he will meet Thursday with his treasurer nominee, Andrew Sidamon-Eristoff, and other economic advisers. He said his administration won’t raise taxes to bring in more revenue, but he wouldn’t rule out layoffs or furloughs for state employees.

“I’m sure that’s stuff we’ll be talking about [Thursday],” Christie said. “I can’t give you specifics about what we’re going to do right now.

Of the executive orders Christie signed Wednesday, the rule on unions’ political donations could have serious implications on candidates for statewide office. Three of the state’s biggest labor unions and their affiliates — the New Jersey Education Association, the AFL-CIO and CWA — gave candidates nearly $1.6 million in 2007, 2008 and 2009, according to the state Election Law Enforcement Commission.

Christie’s order would bring the labor groups in line with businesses, which cannot donate to political campaigns if they have state contracts in excess of $17,500.

“If the rules are good for anyone else, they’re good for unions, too,” he said.

Steve Wollmer, a spokesman for the 200,000-member NJEA, said union officials had not seen the executive order.

“We don’t understand how it would apply to us,” he said. “We’re a nonprofit entity.”

CWA leaders in New York and Trenton did return phone calls seeking comment.

E-mail: reitmeyer@northjersey.com