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The postponement announcement of the State Budget vote caught many by surprise yesterday at the statehouse. There is some sentiment that politics and low poll numbers may be influencing the decision to delay the vote on Appropriations Act due to the infusion of some of the funding increase re tax amnesty revenue. (During an election year, the educated ‘guessors’ usually see September as the time to spring good news on the public....)It seems unlikely that education aid (see GSCS Emailnet 6-15-09 as well as www.gscschools.org 6-15-09) will change much, if at all. Most of the increase will be likely going via property relief, such as property tax deductions, uptick in rebate qualifications...different days down here in Trenton… GSCS heard yesterday that the Assembly Education Committee was going to schedule a meeting for this Monday, but at the time of this writing it is not on the legislative calendar.
Attached: 2 articles about Governor & Legislature and State Budget postponement; An additional note - 1 article re: Chris Christie to pursue Urban Education Reform
6-19-09 a.m.
GSCS ‘Quick’ FYI – State Budget vote delayed until next Thursday, June25
The postponement announcement of the State Budget vote caught many by surprise yesterday at the statehouse. The consensus is that politics and low poll numbers may be influencing the decision to delay the vote on Appropriations Act due to the infusion of some of the funding increase re tax amnesty revenue. (During an election year, the educated ‘guessors’ usually see September as the time to spring good news on the public, but again , low poll numbers for the Governor could be a big influence here.)...It seems unlikely that education aid (see GSCS Emailnet 6-15-09 as well as www.gscschools.org 6-15-09) will change much, if at all. Most of the increase will be likely going via property relief, such as property tax deductions, uptick in rebate qualifications...different days down here in Trenton…
Also, we heard yesterday that the Assembly Education Committee was going to schedule a meeting for this Monday, but at the time of this writing it is not on the legislative calendar.
Attached: 2 articles about Governor & Legislature and State Budget postponement; 1 article re: Chris Christie to pursue Urban Education Reform; This memo will be posted on www.gscschools.org .
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PS PPAG/Princeton Public Affairs Group sent this write up (see immediately below) along yesterday afternoon. It recaps the postponement change up well.
PPAG on BUDGET UPDATE, 6-18-09:
Governor Corzine announced today that the tax amnesty program that was instituted in the Spring has generated $600 million to date which is $400 million more than expected. The tax amnesty program ended Monday June 15.
The Governor has asked the legislature to recommit the budget bill to Committee for review on Monday in order to incorporate the latest revenue numbers. The Governor has insisted that the additional revenue be used for "property tax" relief " The Governor did not commit that "relief" meant that property tax rebate checks would be re-instituted for non-seniors but restoration, in whole or in part, is likely.
Both Houses were expected to meet later today to pass the tax bills necessary to fund the budget. In light of the Governor's announcement, it is unclear if action on the measures will be taken today.
Tax amnesty windfall may restore property tax rebates this fall for some N.J. residents
by Claire Heininger and John Reitmeyer/The Star-Ledger
Thursday June 18, 2009, 7:59 PM
TRENTON -- A surprise windfall from a tax amnesty program may restore property tax rebates this fall for New Jerseyans earning up to $75,000, Gov. Jon Corzine and state lawmakers said today.
The news of at least $400 million in extra revenue postponed votes on the $28.6 billion state budget until next week, and prompted a giddy response from Democrats who had reluctantly trimmed the popular rebates in Corzine's re-election year.
Full Star-Ledger coverage of the N.J. budget
"I want to convey in the strongest possible terms my commitment to using these recovered resources to provide middle-class homeowners with much-needed property tax relief," the governor said.
Along with reviving rebates for households earning up to $75,000 annually, lawmakers want to restore property tax deductions on state income taxes next year for households making up to $200,000, said Assembly Budget Committee chairman Louis Greenwald (D-Camden). The proposed budget calls for eliminating property tax deductions for those making $150,000 or more and eliminating rebates for all but seniors and the disabled.
With more than 17,000 payments yet to be processed by the Treasury Department, the final take from the amnesty program may reach $700 million, the highest in state history, Corzine said. The six-week initiative, which ended June 15, was projected to bring in $200 million.
"It surprised him as much as it surprised us," said Senate President Richard Codey (D-Essex), who learned of the windfall from Corzine on Wednesday evening. "It changes the dynamic."
Republicans -- who have spent months assailing Corzine's recession-starved budget as an attack on the middle class -- immediately blasted the move as an election-year gimmick.
GOP gubernatorial candidate Chris Christie accused Corzine of "haphazard governing," while Assemblyman Joseph Malone (R-Burlington) called the announcement a "Hail Mary" stall tactic to give Senate Democrats time to marshal votes for the spending plan. Codey said that was not the case, but at least three Democratic senators -- enough to block the bill -- expressed reservations about voting for the budget.
Corzine's announcement at a late morning news conference triggered a whirlwind of activity at the Statehouse, where a bevy of lawmakers and lobbyists had gathered in anticipation of a politically charged budget debate stretching late into the night.
Instead, legislators postponed votes on other bills linked to the budget -- including those enacting targeted tax increases -- until next week.
The new revenue will be incorporated into the budget proposal before the Senate and Assembly budget committees meet Monday, and a final vote will come Thursday, still ahead of the June 30 deadline, said Codey and Assembly Speaker Joseph Roberts (D-Camden).
Echoing Corzine, Roberts said property tax relief should be "the primary focus, if not the exclusive focus" of the amnesty money. All members of the Democratic-dominated Assembly are also up for election this year, and Roberts said his caucus broke into applause when they heard news of the windfall this morning.
The governor's campaign staff, meanwhile, fired off an e-mail blast and posted an online ad touting the development as evidence of his leadership amid the economic crisis.
The state spent $2.2 million on an advertising campaign urging deadbeat taxpayers to settle up, waiving penalties and half the interest owed on unpaid taxes for returns due from 2002 and this February. As of today, officials said the amnesty program collected $617 million -- 56 percent of it from corporations.
Roberts and Greenwald could not say today how much the restored rebate checks would be.
Corzine's original budget proposal called for preserving rebates at last year's levels for seniors, the disabled and those making less than $50,000 a year. Households earning $50,000 to $75,000 a year would have received two-thirds of the rebate they got last year. But dramatic revenue drop-offs last month led Corzine to propose eliminating rebates for all but seniors and the disabled.
Restoring rebates to homeowners making up to $75,000 and deductions to those earning up to $200,000 would cost a combined $560 million, Greenwald said.
Codey said he does not want to see the revised budget bill contain any spending increases outside of the additional property tax rebates and income tax exemptions. He acknowledged the money disrupted the momentum of a hard-fought budget and invites problems by posing a tantalizing pool of cash for lawmakers and special interests.
"That's our fear. We can't allow that to happen," Codey said. "It's Christmas in June, but it also upsets the apple cart."
Corzine, too, warned "special interest groups" not to expect new funding and lawmakers not to try to use any money for special projects for their districts, commonly referred to as "Christmas tree items."
"Today is June 18, not Dec. 25," Corzine said. "We will not be buying a Christmas tree."
But that didn't stop lobbyists from trying.
"This will set off a scramble from a lot of groups to get funding restored and taxes eliminated,'' said Philip Kirschner, president of the New Jersey Business and Industry Association.
Statehouse Bureau reporters Josh Margolin, Susan K. Livio and Chris Megerian contributed to this report.
Windfall expected from tax amnesty program
by Elise Young/Statehouse Bureau
Thursday June 18, 2009, 9:03 PM
TRENTON -- A $617 million budget bonanza disclosed today, hours before the Legislature was to vote on the state spending plan, wasn't completely found money.
The tax amnesty program was booming from its start May 4. Two weeks into it, the Division of Taxation doubled its collection goal, to $200 million. On June 12 alone, $201 million came in.
On Monday -- the tax amnesty deadline and the day legislative committees approved the $28.6 billion budget -- state finance officials knew "there was this windfall and this avalanche," said Tom Vincz, a spokesman for the Treasury Department.
Gov. Jon Corzine learned on Wednesday that at least $600 million had come in, according to spokeswoman Deborah Howlett. He shared the news that evening with Senate President Richard Codey (D-Essex) and Assembly Speaker Joseph Roberts, (D-Camden).
Today, Corzine announced the news at the Statehouse and said amnesty money would be put toward property-tax relief. Lawmakers are now working to revive popular taxpayer rebates that had been cut from the budget.
Some wondered about the last-minute developments in an election year.
"A bureaucrat realized (the windfall) over the course of the past several weeks," said Brigid Harrison, a professor of political science at Montclair State University. "Particularly given that Joe Schmo on the street knows the dire straits of the state, it would be surprising that this number was not brought to someone's attention."
Joseph Marbach, a political scientist and dean of the College of Arts and Sciences of Seton Hall
University, speculated that the timing had political implications. Corzine is running for re-election, and the every Assembly seat is up for grabs in November.
"There was a little bit of concern over whether you could get 21 senators to vote for this budget. This may be a way of shoring up some of those votes," Marbach said. "It may also be a response to the rank-and-file who may not have been particularly happy that this process was being rushed."
By law, the Legislature must approve a budget and the governor must sign it by July 1.
Howlett said the governor could not have given earlier word about the windfall. Taxation officials still have 17,500 mailings to sort, she said.
"The reason we did it (today) is that we wanted to be open and transparent about it," Howlett said.
Corzine's office said the final tally could be $700 million, the largest in state history.
Tax amnesty programs have often exceeded expectations.
In 1996, authorities planned for $80 million but received $359 million. In 1987, they expected $50 million but wound up with at least $190 million.
Previous coverage
June 18 -- N.J. legislature postpones budget vote after state gets unexpected $400M windfall
-- N.J. Assembly Budget chair says $400M windfall to be used for property tax rebates
-- N.J. officials say size of tax amnesty windfall not complete surprise
See more in Budget, News, Statehouse, Taxes
Of additional note, in this morning's news:
GOP candidate Chris Christie plans to make urban education reform focal point of campaign
by The Star-Ledger Continuous News Desk
Friday June 19, 2009, 5:21 AM
Republican candidate Christopher Christie plans to focus on education reform for poorer schools as a way to align himself with Democrats and cut into support for Gov. Jon Corzine, a report in the New York Times said.
According to the report, Mr. Christie is pushing for education reform -- merit pay for teachers, more charter schools, and vouchers -- as a way to give poor children better educational choices.
Christie said in an interview with the New York Times that his views align with national Education Secretary Arne Duncan, gambling that school choice has become popular enough among urban blacks and Latinos that he can cut into their support for Corzine, who opposes it, the report said. For example, Rev. Reginald T. Jackson, longtime head of the Black Ministers' Council and a supporter of school vouchers, is scheduled to appear with Mr. Christie at a Camden high school on Monday, the report said.
-- Full coverage of the N.J. Governor's race
