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As anticipated, and laid out in the Governor's message yesterday, school surplus funds will be used to provide $475M to replace state aid to schools for the remainder of the year. With Executive Order 14, the Governor declared a fiscal state of emergency in the morning on February 11 prior to his message to the Joint Legislative Session.
FACTS: As presented, 100% of the additional surplus account, plus 25% each of reserve accounts for capital, maintenance and emergency are to be used to plug the local district's budget hole created since the state school aid is going to be recycled away from schools to help fill the deficit gap in the state budget for Fiscal Year '10 (this year).
The Governor’s Budget Message for FY11is scheduled for March 16.
GSCS: It is important to note that GSCS President Jim O'Neill relayed to the Daily Record yesterday, "... "We all recognize the dire economic times and that we're not going to be able to do what we normally would like to do..." GSCS understands the fiscal stress that the state and localities are facing and we hope to be a positive part of the solution. At the same time GSCS recognizes it has a responsibility to inform the public.
A number of questions arise from the plan; we will investigate and report back as soon as possible.
As GSCS stated in testimony this February 1 before the Senate Education Committee, “… a main tenet of the Coalition is ‘public support for public education’. A major GSCS priority is how to achieve fiscal responsibility to local and state taxpayers while assuring a stable base for quality education…We believe that the results of (any potential) reductions should be recorded and made known so that all understand the impact and learn from the experience…”
Click on more here for today's news articles on the Governor's message yesterday to the Joint Session of the Legislature.
The Record - NJ schools, colleges brace for state aid cuts
Friday, February 12, 2010
BY LESLIE BRODY AND PATRICIA ALEX
The Record
STAFF WRITERS
Education leaders in North Jersey said Governor Christie's decision to freeze state aid midyear could lead to college tuition hikes, property tax increases and school staff cuts in the fall.
Christie said Thursday he would withhold $475 million in promised state aid to schools and $62 million in aid to public colleges and universities to help balance the current state budget. But school superintendents said the plan unfairly shifted Trenton's mismanagement and budget woes onto the backs of local taxpayers.
"We anticipate some serious budget shortfalls as a result of this decision," said Paramus Superintendent James Montesano. "You're not going to make up budget deficits by cutting out Crayola crayons," he said, adding that staff reductions are a "very real possibility" before school opens next fall.
The governor said his cuts — done with a scalpel, not an axe — were painful but necessary due to the state's fiscal crisis. He said cuts were tied to the surpluses carried by each district or college, and no recipient would lose more than its surplus.
Many districts put aside a maximum of 2 percent of their budgets to pay for emergencies, such as leaky roofs, broken pipes or midyear enrollments by special-needs students who require expensive placements. Beyond those rainy-day funds, any "excess surplus" goes into easing the next year's budget.
The Christie administration said districts that are carrying excess surpluses will not get that amount of state aid this fiscal year, which ends June 30. The state will also withhold aid amounting to 25 percent of districts' reserves targeted for capital improvements, maintenance and emergencies, administration officials said.
That means most districts won't get a portion of the remaining aid payments they expected; more than 100 will lose all state aid for the rest of this fiscal year.
Bernard Josefsberg, superintendent in Leonia, said his district had created a successful program for children with special needs that generated more tuition than expected from sending districts. Due to Christie's plan, the district would not be able to use that revenue in the coming year's budget to hold down the tax burden on Leonia residents.
"No good deed goes unpunished," he said. He disputed Christie's pledge of "not one textbook left unbought, not one teacher laid off."
"Jobs will be lost here in Leonia as a result of my inability to recover through higher taxes the $400,000 hole created in next year's budget by the loss of this year's surplus," he said.
In Passaic, the surplus is used up by dealing with the vagaries of funding for special education programming, said Superintendent Robert Holster. Nearly a quarter of the city's 13,000 students get some kind of special services.
"I'm sensitive to the governor's concerns," said Holster. "I agree that we have to go on a diet, but does it have to be a crash diet?"
Adam Fried, superintendent of Harrington Park, said his district, like other efficient ones, would be penalized for creating an excess surplus by sharing garbage service with the town and even renegotiating the price of toilet paper every month. He said the aid cut — which totals nearly $130,000 — was a harsh blow on top of the budget strains the district already faced, including a 25 percent increase for health benefits this year.
"You're making school districts bleed and that's not good for children," he said.
The plan to cut $62.1 million in funding to the state's public colleges and universities is likely to trigger more hikes in a state where public tuition already is among the highest in the nation, averaging $11,000 annually at the four-year schools.
In December, Christie met with higher education leaders and slammed what he called eight years of Democratic neglect. He promised that their schools would be a priority in his administration but warned that near-term cuts could be in the offing.
"We knew this was going to be a tough budget," said Paul Shelly, spokesman for the New Jersey Association of State Colleges.
Last year, the Legislature imposed a one-time cap of 3 percent on tuition increases at the schools. Rutgers, the state university, has had several cutbacks and layoffs in the past several years. In a statement Thursday, the university called the cuts an "additional hardship."
The state's 19 community colleges will not get $8.9 million in funding they expected for the remainder of this school year. At Bergen Community College, it means a cut of about $600,000 that will make it harder to avoid tuition increases, said President Jerry Ryan. Deeper cuts and tuition hikes are likely in September, Ryan said.
Staff Writer John Reitmeyer contributed to this report. E-mail: brody@northjersey.com and alex@northjersey.com
Education leaders in North Jersey said Governor Christie's decision to freeze state aid midyear could lead to college tuition hikes, property tax increases and school staff cuts in the fall.
Christie said Thursday he would withhold $475 million in promised state aid to schools and $62 million in aid to public colleges and universities to help balance the current state budget. But school superintendents said the plan unfairly shifted Trenton's mismanagement and budget woes onto the backs of local taxpayers.
"We anticipate some serious budget shortfalls as a result of this decision," said Paramus Superintendent James Montesano. "You're not going to make up budget deficits by cutting out Crayola crayons," he said, adding that staff reductions are a "very real possibility" before school opens next fall.
The governor said his cuts — done with a scalpel, not an axe — were painful but necessary due to the state's fiscal crisis. He said cuts were tied to the surpluses carried by each district or college, and no recipient would lose more than its surplus.
Many districts put aside a maximum of 2 percent of their budgets to pay for emergencies, such as leaky roofs, broken pipes or midyear enrollments by special-needs students who require expensive placements. Beyond those rainy-day funds, any "excess surplus" goes into easing the next year's budget.
The Christie administration said districts that are carrying excess surpluses will not get that amount of state aid this fiscal year, which ends June 30. The state will also withhold aid amounting to 25 percent of districts' reserves targeted for capital improvements, maintenance and emergencies, administration officials said.
That means most districts won't get a portion of the remaining aid payments they expected; more than 100 will lose all state aid for the rest of this fiscal year.
Bernard Josefsberg, superintendent in Leonia, said his district had created a successful program for children with special needs that generated more tuition than expected from sending districts. Due to Christie's plan, the district would not be able to use that revenue in the coming year's budget to hold down the tax burden on Leonia residents.
"No good deed goes unpunished," he said. He disputed Christie's pledge of "not one textbook left unbought, not one teacher laid off."
"Jobs will be lost here in Leonia as a result of my inability to recover through higher taxes the $400,000 hole created in next year's budget by the loss of this year's surplus," he said.
In Passaic, the surplus is used up by dealing with the vagaries of funding for special education programming, said Superintendent Robert Holster. Nearly a quarter of the city's 13,000 students get some kind of special services.
"I'm sensitive to the governor's concerns," said Holster. "I agree that we have to go on a diet, but does it have to be a crash diet?"
Adam Fried, superintendent of Harrington Park, said his district, like other efficient ones, would be penalized for creating an excess surplus by sharing garbage service with the town and even renegotiating the price of toilet paper every month. He said the aid cut — which totals nearly $130,000 — was a harsh blow on top of the budget strains the district already faced, including a 25 percent increase for health benefits this year.
"You're making school districts bleed and that's not good for children," he said.
The plan to cut $62.1 million in funding to the state's public colleges and universities is likely to trigger more hikes in a state where public tuition already is among the highest in the nation, averaging $11,000 annually at the four-year schools.
In December, Christie met with higher education leaders and slammed what he called eight years of Democratic neglect. He promised that their schools would be a priority in his administration but warned that near-term cuts could be in the offing.
"We knew this was going to be a tough budget," said Paul Shelly, spokesman for the New Jersey Association of State Colleges.
Last year, the Legislature imposed a one-time cap of 3 percent on tuition increases at the schools. Rutgers, the state university, has had several cutbacks and layoffs in the past several years. In a statement Thursday, the university called the cuts an "additional hardship."
The state's 19 community colleges will not get $8.9 million in funding they expected for the remainder of this school year. At Bergen Community College, it means a cut of about $600,000 that will make it harder to avoid tuition increases, said President Jerry Ryan. Deeper cuts and tuition hikes are likely in September, Ryan said.
Staff Writer John Reitmeyer contributed to this report. E-mail: brody@northjersey.com and alex@northjersey.com
N.J. Gov. Chris Christie announces plans to tackle $2.2B budget shortfall
By Statehouse Bureau Staff The Record/Star Ledger, February 11, 2010, 9:15PM
New Jersey Gov. Chris Christie today declared a state of fiscal emergency, and vowed to close a $2.2 budget hole.
TRENTON -- Gov. Chris Christie seized extraordinary powers to shrink the state budget today, infuriating Democratic lawmakers ahead of an even bigger fight during the next spending plan and laying the foundation for unprecedented changes in the way all New Jersey governing bodies operate.
In an executive order and speech to both houses of the Legislature, Christie said he would close a $2.2 billion budget hole, saying New Jersey is on “the edge of bankruptcy.” He revoked funds from local school districts, hospitals and NJ Transit and declared a “state of fiscal emergency,” forcing more than 500 school districts to spend their surpluses in place of state aid.
The governor slashed programs labeled wasteful and worthwhile, cut aid to colleges and universities and killed the Department of the Public Advocate. He urged pension and benefit cuts for all public employees, and mocked their unions by comparing their objections to his 9-year-old son’s cry of “unfair.” He called opponents of his plans defenders of “the old ways.”
“Now is the time when we all must resist the traditional, selfish call to protect your own turf at the cost of our state,” the Republican governor said. “We chose to confront the problem head on by reforming our spending habits, and laying the groundwork for reform. We have set out in a new direction, a direction dictated by the votes of the people of New Jersey, and I do not intend to turn back.”
Christie pegs next year’s budget gap — which he will address March 16 — at $11 billion, but his dramatic rhetoric and draconian fixes for this year’s $2.2 billion hole drew sharp objections from Democrats who control both houses of the Legislature. Top Democrats questioned whether it is legal for Christie to freeze already-budgeted funds, and said shifting the burden to school districts could drive up property taxes next year.
“This is an easy thing to pick someone else’s pocket — you’re taking the money from local taxpayers to fill your budget,” said Senate President Stephen Sweeney (D-Gloucester). “It’s wrong.”
Worse, he said, Christie abandoned bipartisan governing for a 30-minute televised drama where he could play the hero.
“So much for a handshake,” Sweeney said, referring to Christie’s widely praised gesture to invite Sweeney and Assembly Speaker Sheila Oliver (D-Essex) to the podium during his inaugural speech less than a month ago.
Senate Majority Leader Barbara Buono (D-Middlesex) said the broad language of Christie’s executive order could mean he has given himself power to break contracts, set aside civil service rules or anything else. “What the governor did today is in essence declare martial law,” she said. Administration officials said state law allows him to “impound” money to keep the budget balanced.
Coupled with major proposed changes to pensions and benefits, Christie’s budget plans set the stage for sacrifice at all levels of government and local school districts, shifting the burden from the state. The governor acknowledged the cuts to school aid would “not be popular” but stressed it would not take “one dime out of the classroom this year.”
Next year may be a different story, because school districts will “need to set aside new money to rebuild those reserves,” said Marie S. Bilik, the executive director of the New Jersey School Boards Association. “These are funds that they will not be able to direct to the classroom or use to control property taxes.”
Paul Shelly, spokesman for the state Association of Colleges and Universities, said the $62 million in college cuts cannot easily be made up because reserves are already dedicated toward construction or endowment maintenance.
Christie acknowledged that slicing NJ Transit subsidies by $32.7 million could lead to higher fares or reduced services, but said the authority can also run more efficiently
Betsy Ryan, President and CEO of the New Jersey Hospital Association, said Christie’s cut of $12.6 million from the charity care fund would mean a $25 million loss because the state gets a dollar-for-dollar match from the federal government.
By Claire Heininger and Lisa Fleisher
Staff writers Susan K. Livio, Peggy Ackermann, Mary Fuchs, Josh Margolin, Brian Whitley and Kristen Alloway contributed to this report.
Stile: Christie budget speech provokes howls -- just as desired
Friday, February 12, 2010
Last updated: Friday February 12, 2010, 8:24 AM
By CHARLES STILE
COLUMNIST Governor Christie's "emergency" budget speech on Thursday included this one inaccurate prediction:
"The defenders of the status quo will start chattering as soon as I leave this chamber,'' he said.
They didn't chatter. They howled.
"Three weeks into his administration, all we know so far about the governor's budget priorities are that they consist of an income tax cut for millionaires and a property tax increase for everyone else,'' complained Sen. Paul Sarlo of Wood-Ridge, chairman of the Senate Budget Committee.
Christie's speech was as much a strategic political provocation as it was a strategy to close a $2 billion shortfall in the current state budget. He successfully goaded Democrats into a wartime footing. Democrats sat as his polite, glum audience during the speech and became his foil the instant he left.
The Democrats followed of a time-honored Trenton tradition of acting as the loyal, critical opposition, which suited the Christie scheme just fine. The same hand he extended to Senate President Stephen Sweeney and Assembly Speaker Shelia Oliver in a grand gesture of bipartisan cooperation at his inauguration can now point an angry finger of blame at the duo and their members. They will soon be depicted as the intransigent, parochial enemies of change.
"They'll say the problems are not that bad; listen to me, I can spare you the pain and sacrifice. We know this is simply not true. New Jersey has been steaming toward financial disaster for years due to that kind of attitude,'' Christie said.
Patrick Murray, the Monmouth University pollster who watched the speech, said it was a bold step and let Christie appear that he is controlling the debate.
"People know that there has to be an enemy in the process,'' Murray said. "If it looks like the Democrats are defending the status quo, then they are part of the problem."
Christie signaled earlier this week that the bipartisan cordiality was about to come crashing down.
He kept the Democrats in the dark over the speech details until Wednesday night, when a cursory summary was provided to Sweeney and Oliver in a five-minute conference call. Details were expected to follow the next morning in an 8 a.m. e-mail that didn't arrive until closer to 9:30 a.m., an hour before the speech.
Democrats also fumed over Christie's executive order, his 14th in four weeks, which he'll use to carry out bold budget-balancing measures, including a $475 million cut in school aid and a $12 million cut in reimbursements to hospitals for treating uninsured patients. Some Democrats began hinting that Christie has a Napoleonic streak, using executive orders to bypass the Legislature, where Democrats maintain majority control.
Oliver hinted that they might challenge the order in court, which again, would probably be just fine for Christie, giving him another forum to portray them as obstructionists. And besides, by the time a legal challenge is exhausted, the Legislature and Christie will be battling over the next budget mess.
Christie, who maintains strong approval ratings and polls that support steep cuts to government spending, has the upper hand in the court of public opinion, and the Democrats know it. Many tempered their anger with diplomacy. Sweeney reaffirmed his "willingness to work with this governor" and noted that he personally likes Christie. Assembly Budget Chairman Lou Greenwald said Christie "batted one for three today,'' and praised his pension reforms.
Republican defenders said the criticisms reflected the Democrats' disconnect with an angry, disgusted public that tossed Jon Corzine out of office. They want change, and they could care less about the legislative briefings or legal quibbles over executive orders.
"I think the governor is doing what he was elected to do — managing problems,'' said Republican Sen. Joe Kyrillos, a Christie confidant. "He is forcing what he believes are the right outcomes and in some cases the only outcomes through the institutional powers and through the force of personality, no matter how the chips fall.
Democrats will need to find a way to navigate the Christie hurricane if they are going to serve as an effective and viable opposition. They plausibly argue that the cut in school aid could spike property taxes because schools are responsible for nearly two-thirds of the property tax bill. Christie says school district surpluses can easily cover the cost of the lost aid, thus avoiding cuts in staff and programs. Maybe for this year, but many districts depended on that surplus nest egg to balance the next year's budget.
If they do craft a message and a proposal, they'll have to do it on their own, not without Christie's input. Democrats learned Thursday that with friends like Chris Christie, who needs enemies?
Governor Christie's "emergency" budget speech on Thursday included this one inaccurate prediction:
"The defenders of the status quo will start chattering as soon as I leave this chamber,'' he said.
They didn't chatter. They howled.
"Three weeks into his administration, all we know so far about the governor's budget priorities are that they consist of an income tax cut for millionaires and a property tax increase for everyone else,'' complained Sen. Paul Sarlo of Wood-Ridge, chairman of the Senate Budget Committee.
Christie's speech was as much a strategic political provocation as it was a strategy to close a $2 billion shortfall in the current state budget. He successfully goaded Democrats into a wartime footing. Democrats sat as his polite, glum audience during the speech and became his foil the instant he left.
The Democrats followed of a time-honored Trenton tradition of acting as the loyal, critical opposition, which suited the Christie scheme just fine. The same hand he extended to Senate President Stephen Sweeney and Assembly Speaker Shelia Oliver in a grand gesture of bipartisan cooperation at his inauguration can now point an angry finger of blame at the duo and their members. They will soon be depicted as the intransigent, parochial enemies of change.
"They'll say the problems are not that bad; listen to me, I can spare you the pain and sacrifice. We know this is simply not true. New Jersey has been steaming toward financial disaster for years due to that kind of attitude,'' Christie said.
Patrick Murray, the Monmouth University pollster who watched the speech, said it was a bold step and let Christie appear that he is controlling the debate.
"People know that there has to be an enemy in the process,'' Murray said. "If it looks like the Democrats are defending the status quo, then they are part of the problem."
Christie signaled earlier this week that the bipartisan cordiality was about to come crashing down.
He kept the Democrats in the dark over the speech details until Wednesday night, when a cursory summary was provided to Sweeney and Oliver in a five-minute conference call. Details were expected to follow the next morning in an 8 a.m. e-mail that didn't arrive until closer to 9:30 a.m., an hour before the speech.
Democrats also fumed over Christie's executive order, his 14th in four weeks, which he'll use to carry out bold budget-balancing measures, including a $475 million cut in school aid and a $12 million cut in reimbursements to hospitals for treating uninsured patients. Some Democrats began hinting that Christie has a Napoleonic streak, using executive orders to bypass the Legislature, where Democrats maintain majority control.
Oliver hinted that they might challenge the order in court, which again, would probably be just fine for Christie, giving him another forum to portray them as obstructionists. And besides, by the time a legal challenge is exhausted, the Legislature and Christie will be battling over the next budget mess.
Christie, who maintains strong approval ratings and polls that support steep cuts to government spending, has the upper hand in the court of public opinion, and the Democrats know it. Many tempered their anger with diplomacy. Sweeney reaffirmed his "willingness to work with this governor" and noted that he personally likes Christie. Assembly Budget Chairman Lou Greenwald said Christie "batted one for three today,'' and praised his pension reforms.
Republican defenders said the criticisms reflected the Democrats' disconnect with an angry, disgusted public that tossed Jon Corzine out of office. They want change, and they could care less about the legislative briefings or legal quibbles over executive orders.
"I think the governor is doing what he was elected to do — managing problems,'' said Republican Sen. Joe Kyrillos, a Christie confidant. "He is forcing what he believes are the right outcomes and in some cases the only outcomes through the institutional powers and through the force of personality, no matter how the chips fall.
Democrats will need to find a way to navigate the Christie hurricane if they are going to serve as an effective and viable opposition. They plausibly argue that the cut in school aid could spike property taxes because schools are responsible for nearly two-thirds of the property tax bill. Christie says school district surpluses can easily cover the cost of the lost aid, thus avoiding cuts in staff and programs. Maybe for this year, but many districts depended on that surplus nest egg to balance the next year's budget.
If they do craft a message and a proposal, they'll have to do it on their own, not without Christie's input. Democrats learned Thursday that with friends like Chris Christie, who needs enemies?
Gannett/Asbury Park Press-
Gov. Chris Christie takes ax
to New Jersey budget
Cuts to plug state's $2.2 billion deficit
By MICHAEL SYMONS • GANNETT STATE BUREAU
• February 11, 2010
TRENTON — Gov. Chris Christie laid out a series of
detailed spending cuts to lawmakers at a special
joint session Thursday, including reductions in aid
to K-12 schools, colleges, hospitals and New Jersey
Transit that kick in starting this month.
Christie cautioned that the cuts will be followed by
more difficult decisions for next year's budget,
which he'll present to lawmakers next month. The
cuts he outlined Thursday are intended to resolve a
$2.2 billion deficit in the current year's budget.
"So today, let's begin the process of fiscal reform
and discipline. Today, we are going to act swiftly to
fix problems long ignored. Today, I begin to do
what I promised the people of New Jersey I would
do. Today, we begin to give them the change they
voted for in November," Christie said.
Democrats say Christie's moves will increase costs
for state residents. His plan to withhold $475
million in aid from school districts that have money
in reserves to cover that means the money isn't
available to offset property taxes next school year,
they say. His $32.7 million cut in NJ Transit
subsidies may lead to higher fares.
Assemblyman Louis Greenwald, D-Camden, said the
Assembly Budget Committee he heads will hold a
public hearing next week on the education funding
maneuver to hear from school administrators. He
said the state should tap its $500 million surplus.
"This is reckless. What he did today is take money
from their pockets to put it in his pocket to solve his
problems at their expense," Greenwald said. "He's
unwilling to spend his surplus, but he's willing to
go to local districts to spend theirs. That's not
consistent."
Christie said the school-funding solution — an
expanded version of an idea then-Gov. Jon S.
Corzine detailed in December — "does not take one
penny from an approved school instructional
budget" and won't cause layoffs or property tax
increases. The cuts equal a school district's excess
surplus accounts, and all but 17 of the 581 districts
lose at least some funding.
"Now I take no joy in having to make these
decisions. And I know these judgments will affect
our fellow New Jerseyans, and they will hurt. This is
not a happy moment. But what choices do we have
left?" Christie said.
"The defenders of the status quo will start chattering
as soon as I leave this chamber. They'll say the
problems are not that bad. The governor is
overblowing it. Listen to us, we can spare you the
pain and the sacrifice," Christie said. "This has been
the siren song for too long, and we know that it is
simply not true. New Jersey has been steaming
toward financial disaster for years due to that kind
of attitude."
Freezing salaries?
Assemblyman Joseph Malone III, R-Burlington, said
Christie by executive order or lawmakers should
prohibit municipal and school property taxes from
increasing.
"We ought to be talking about pay freezes at all
levels of government. We ought to be talking about
teachers sitting down seriously and talking about
pay freezes so that we can get through this
catastrophic issue," Malone said. "This is not like
anything anyone else has ever been through."
An executive order Christie signed Thursday
morning — which declares a state of fiscal
emergency — directs acting Treasurer Andrew
Sidamon-Eristoff and acting Attorney General Paula
Dow to study "projected costs to the state and local
entities associated with previously negotiated
employee salary structures" and possibly present
"proposed alternatives to achieve necessary cost
savings in light of the current fiscal crisis."
Christie in his speech detailed pension and health
benefit costs for seemingly rank-and-file state
workers and asked whether those costs were fair.
Union officials at the Communications Workers of
America deemed the remarks "vilification of us as
blameworthy special interests" that reflected
"anything but statesmanship."
'Governing by edict'
Democrats who control the state Legislature were
miffed that the Christie administration didn't detail
the budget cuts to them until about an hour before t
he speech and concerned that Christie is acting
unilaterally to address the deficit by executive
order.
Senior administration officials say none of Christie's
budget-balancing moves requires legislative
approval. That includes the elimination of the
Department of the Public Advocate, effective April 1,
or transferring nearly $290 million from dedicated
funds.
"When the governor shook our hands collectively, it
was in the spirit of bipartisan effort," said Senate
President Stephen Sweeney, D-Gloucester.
"Governing by executive order is questionable to
start with. We're not sure if it's completely legal,
what he is doing. We intend for the Legislature to be
part of this discussion. The governor was elected
governor. He has a Legislature that we expect him to
work with."
"The governor is governing by edict, and it seems to
me a pretext to avoiding the Legislature's
involvement," said Senate Majority Leader Barbara
Buono, D-Middlesex. "We have co-equal branches
of government. We want to work with him. I've met
with the governor, and he's saying all the right
things, but today, really, it concerns me deeply."
Agreement in GOP
Sen. Robert Singer, R-Ocean, said the cuts are
necessary and need to be instituted quickly.
"This is not an option. This is a person who has
maxed out all the credit cards, tapped the house,
and now needs to go to through the grocery store,"
Singer said.
"If we don't make these decisions, government will
shut down. We can't allow that to happen," Singer
said. "The State Police won't roll. Emergency services
won't roll. The Statehouse will shut down. You can't
operate a government without money."
Among the bigger-ticket maneuvers is the lapse of
$158 million from the Board of Public Utilities' Clean
Energy Fund to the state's general fund. Jeff Tittel,
New Jersey director for the Sierra Club, said Christie
campaigned on energy as a job-producing industry
but is now undermining that.
"That's money paid for by consumers to do
conservation and renewable energy projects. This
money creates 20,000 jobs in New Jersey and is
matched by private and federal dollars. This is not
only bad for the environment, it's bad for the
economy," he said.
Daily Record - Governor cuts funds to all
but 2 Morris County school
districts
By LAURA BRUNO • STAFF WRITER • February
12, 2010
The majority of Morris County public school
districts will lose some state aid this school year
and be forced to draw down excess surplus or tap
capital reserve accounts under a plan unveiled
Thursday by Gov. Chris Christie.
In a speech to the Legislature, Christie said he will
withhold $475 million in state aid to public schools
to help close the state's current budget gap. Several
local educators said they understand the governor's
dilemma, but they are fearful of what's coming next
month — the governor's proposal for state aid for
the next school year.
In the meantime, a total of 564 of 581 school
districts will see state aid payments withheld,
beginning Feb. 22, according to administration
officials. Of the 17 spared, only Madison and
Denville in Morris County escaped the cut.
"I don't doubt he's got big issues, big problems with
a $30 billion budget and I don't think he had much
choice but to take drastic action," said Chathams
superintendent James O'Neill.
O'Neill, whose district lost $128,589, said his
dilemma is likely to be less dire than in other
districts because the majority of the district's
funding comes from local taxpayers.
Christie's plan calls for the state to withhold state
aid payments to districts carrying more than 2
percent of their budget in surplus funds and those
with money in reserve accounts for capital or
maintenance projects, according to documents
released by the Christie administration.
Madison superintendent Richard Noonan, whose
district escaped the cut on Thursday, said he is
worried, however, that this portends badly for next
year's state aid picture. The district is already
working on a budget that projects a major state aid
cut.
"We're waiting with a certain degree of dread to see
what comes in March," Noonan said. "It would be a
significant challenge for us to honor our present
programs, curriculum and class size commitments if
there is a significant change . . . to the amount of
state aid we receive.
Under the plan outlined for the remainder of this
year, the state will withhold an amount equal to how
much a district exceeds the maximum 2 percent
surplus allowed under state law, according to the
administration. In addition, districts will lose an
amount equal to 25 percent of funds kept in capital
and maintenance reserve accounts. For some
districts, this means they will not receive any more
state aid payments this school year.
O'Neill said the district has about $400,000 in
capital and maintenance reserve accounts, but the
K-12 district's surplus account is below the 2
percent cap. The district was slated to receive about
$2.9 million in total state aid this year, which was
about $140,000 more than they had last school
year.
Chatham had been one of nine Morris districts that
had been promised a state aid increase by the
Corzine administration under a new funding formula
that took into account districts that were spending
less per pupil than the state deemed "adequate" and
that were experiencing enrollment increases.
Chatham fell into both categories.
O'Neill said he planned to use the $300,000 in
capital reserves to convert an old industrial arts
class at Chatham Middle School into three
classrooms. The middle school is expecting about
70 more students in the school next year because a
large sixth-grade class is moving in.
"We all recognize the dire economic times and that
we're not going to be able to do what we normally
would like to do," O'Neill said.
Posted on Fri, Feb. 12, 2010 Christie balances budget with cuts He sliced aid for education and health care. Critics say what he has done will mean a property tax increase. By Jonathan Tamari Inquirer Trenton Bureau TRENTON - Gov. Christie, in the first major budget decisions of his term, asserted broad executive powers yesterday to cut aid to public schools, health-care programs, public transportation, and a wide array of other areas, saying the steps were the beginning of his promised fiscal reform. Christie acknowledged many cuts would hit valued programs, but said New Jersey "is in a state of fiscal crisis," with a $2.2 billion budget deficit, and its residents are "the most overtaxed citizens in America." "Today, we come to terms with the fact that we cannot spend money on everything we want. Today, the days of Alice in Wonderland budgeting in Trenton end," Christie said in a speech to the Legislature. Christie used an executive order to freeze around $1.5 billion of spending and erase surpluses in other accounts, asserting the power to unilaterally alter the budget. But Democrats who control the Legislature were angered by his methods, tone and targets for cuts. They said they were left out of the process. "This is a property-tax increase that is being proposed; it is not the bold and brave changing and cutting of government that was promised to the taxpayers of the state of New Jersey," said Senate President Stephen Sweeney (D., Gloucester). "It's not an emergency. . . . It's called governing, and you need to govern and make decisions with the Legislature." Christie's cuts, 375 line items in all, struck a broad range of areas. Most controversially, public schools will lose $475 million in aid - a reduction that will affect nearly every district, rich or poor. Colleges will see a $62 million cut. Hospitals will absorb a $25 million aid reduction, half from the state and half from federal matching funds. Subsidies for NJ Transit were cut by $32.7 million, with budget documents indicating that a fare increase was likely. On health care, 11,700 legal immigrants who are not yet citizens will be taken off the state's FamilyCare health care program, saving $2.5 million per month. A $58 million jobs creation program, which gave tax credits for new hires, was scrapped and labeled as ineffective. Christie will skip $100 million of pension payments, increasing the long-term deficit in the state's retirement funds. Administration aides noted that Christie had limited options, with the fiscal year more than half over. Several hundred million dollars of savings, including $300 million of school aid cuts, came from proposals first raised by Gov. Jon S. Corzine in an attempt to leave Christie with a balanced spending plan, though some had not been enacted. Christie also relied on some added federal aid and $175 million of increased revenues. An additional $450 million was made up by taking back money from state programs with excess funds. Christie delivered his plans in a 25-minute speech to a Legislature missing several members a day after a snowstorm blanketed the state. The address included typical Christie bravado - "I am not happy, but I am not afraid to make these decisions either" - and barbs. Christie assailed the budget left by Corzine and lashed out at the pension and health benefits for public employees. He urged lawmakers to go farther with their recently proposed benefit reforms and compared public employee unions' objections to those of young children. "The special interests have already begun to scream their favorite word, which, coincidentally, is my 9-year-old son Patrick's favorite word when we are making him do something he knows is right but does not want to do - 'unfair,' " Christie said. Republicans heartily applauded throughout the speech. "These decisions will make the state more affordable today, and it sets the right course for long-term reform," said Senate Minority Leader Thomas H. Kean Jr. (R., Union). Christie and the GOP noted that the next budget, beginning July 1, faces an even larger deficit. Democrats, who control the Legislature, objected on several fronts. They said they had been left largely in the dark on the proposed cuts, receiving details shortly before the morning speech. They also questioned the legality of using an executive order to single-handedly cut state programs, noting that past governors have closed budget gaps without such methods. Christie's order said "a state of fiscal emergency exists" in New Jersey, though he did not use emergency powers. Instead, administration officials said he was using the governor's statutory authority to block spending. The officials, who briefed reporters but refused to be identified by name, said they needed to use an executive order to act quickly. The biggest dispute was over school aid, which directly impacts school programs and the property taxes that largely pay for education. The majority of cuts come from districts with surpluses larger than the 2 percent allowed by law. The administration is also cutting aid equal to 25 percent of districts' reserves for maintenance, capital projects or emergencies, or excess funds that emerged after they approved their budgets. By taking from district reserves, Christie said, no program cuts would be needed this year. "Not one dime out of the classroom," he said. But Democrats said taking away surpluses and emergency funds punishes districts that planned ahead. Schools that need a new roof or boiler in the near future will now have to dip into taxpayers' pockets, Sweeney said. In all, 564 districts out of 581 will be affected. Some will lose all of their remaining aid payments. Camden will lose $8.1 million of state support. Pennsauken will take a $7.65 million cut. Collingswood Schools Superintendent Scott Oswald said districts that "did the right thing" by saving were being punished. Glassboro Superintendent Mark Silverstein said in an e-mail that districts hold reserves for emergencies, such as the overtime to remove snow this week. Without them, "the only place to make cuts is from bare bones education programming." Labor leaders, meanwhile, noted Christie is reducing many programs while refusing to renew a Corzine income tax hike on filers earning $400,000 or more. "Where is the statesmanship and the sense of shared sacrifice?" asked Bob Master, regional political director for the Communication Workers of America. "Lots of rhetoric, not a lot of fairness." ________________________________________ Christie's Budget Address "New Jersey is in a state of financial crisis. Our state's budget has been left in a shambles and requires immediate action to achieve balance." "Our conscience and common sense require us to fix the problem in a way that does not raise taxes on the most overtaxed citizens in America. Our love for our children requires that we do not shove today's problems under the rug only to be discovered again tomorrow. Our sense of decency must require that we stop using tricks that will make next year's budget problem even worse." - Gov. Christie "So much for a handshake." - Senate President Stephen Sweeney (D., Gloucester), sarcastically referring to Christie's handshake with the two top legislative leaders at his inaugural address last month. "I don't envy him. I didn't run for governor, but this will be devastating to us." - Collingswood Superintendent Scott Oswald, who also said he felt Christie's order unfairly penalized districts that "did the right thing" and saved money. ________________________________________ Contact staff writer Jonathan Tamari at 609-989-9016 or jtamari@phillynews.com. Inquirer staff writer Rita Giordano contributed to this article. Star Ledger - Christie acts to save budget Friday, February 12, 2010 By Claire Heininger and Lisa Fleisher Statehouse Bureau Gov. Chris Christie seized extraordinary powers to shrink the current state budget Thursday, infuriating Democratic lawmakers ahead of an even bigger fight over the next spending plan and laying the foundation for unprecedented changes in the way all New Jersey governing bodies operate. In an executive order and speech to both houses of the Legislature, Christie said he would close a $2.2 billion budget hole, saying New Jersey is on "the edge of bankruptcy." He revoked funds from local school districts, hospitals and NJ Transit and declared a "state of fiscal emergency," forcing more than 500 school districts to spend their surpluses in place of state aid. The governor slashed programs labeled wasteful and worthwhile, cut aid to colleges and universities and killed the Department of the Public Advocate. He urged pension and benefit cuts for all public employees, and mocked their unions by comparing their objections to his 9-year-old son's cry of "unfair." He called opponents of his plans defenders of "the old ways." "Now is the time when we all must resist the traditional, selfish call to protect your own turf at the cost of our state," the Republican governor said. "We chose to confront the problem head on by reforming our spending habits, and laying the groundwork for reform. We have set out in a new direction, a direction dictated by the votes of the people of New Jersey, and I do not intend to turn back." Christie pegs next year's budget gap Đ which he will address March 16 Đ at $11 billion, but his dramatic rhetoric and draconian fixes for this year's $2.2 billion hole drew sharp objections from Democrats who control both houses of the Legislature. Top Democrats questioned whether it is legal for Christie to freeze already-budgeted funds, and said shifting the burden to school districts could drive up property taxes next year. "This is an easy thing to pick someone else's pocket Đ you're taking the money from local taxpayers to fill your budget," said Senate President Stephen Sweeney, D-3, of West Deptford. "It's wrong." Worse, he said, Christie abandoned bipartisan governing for a 30-minute televised drama where he could play the hero. "So much for a handshake," Sweeney said, referring to Christie's widely praised gesture to invite Sweeney and Assembly Speaker Sheila Oliver, D-Essex, to the podium during his inaugural speech less than a month ago. Senate Majority Leader Barbara Buono, D-Middlesex, said the broad language of Christie's executive order could mean he has given himself power to break contracts, set aside civil service rules or anything else. "What the governor did today is, in essence, declare martial law," she said. Administration officials said state law allows him to "impound" money to keep the budget balanced. Coupled with major proposed changes to pensions and benefits, Christie's budget plans set the stage for sacrifice at all levels of government and local school districts, shifting the burden from the state. The governor acknowledged the cuts to school aid would "not be popular" but stressed it would not take "one dime out of the classroom this year." Next year may be a different story, because school districts will "need to set aside new money to rebuild those reserves," said Marie S. Bilik, the executive director of the New Jersey School Boards Association. "These are funds that they will not be able to direct to the classroom or use to control property taxes." Paul Shelly, spokesman for the state Association of Colleges and Universities, said the $62 million in college cuts cannot easily be made up because reserves are already dedicated toward construction or endowment maintenance. Christie acknowledged that slicing NJ Transit subsidies by $32.7 million could lead to higher fares or reduced services, but said the authority can also run more efficiently Betsy Ryan, President and CEO of the New Jersey Hospital Association, said Christie's cut of $12.6 million from the charity care fund would mean a $25 million loss because the state gets a dollar-for-dollar match from the federal government. Đ Staff writers Susan K. Livio, Peggy Ackermann, Mary Fuchs, Josh Margolin, Brian Whitley and Kristen Alloway contributed to this report.
