Gov. Chris Christie rips Democrats' budget proposal, warns of more modest revenue projection

Published: Saturday, June 25, 2011, 6:00 AM Updated: Saturday, June 25, 2011, 8:29 AM

By Jarrett Renshaw/Statehouse BureauThe Star-Ledger

TRENTON — Gov. Chris Christie ripped into an alternative budget plan being offered by Democratic lawmakers Friday and warned them to scale it back by relying on more modest revenue projections.

"The proposed budget from the Democrats is just more of the same unrealistic, pie in the sky, fantasy budgeting they brought to New Jersey for the eight years before we arrived," Christie said in a written statement.

The move comes a day after Democratic leaders reached across the aisle to deliver Christie a political victory by sharply increasing the cost of health and pension benefits for the state’s public employees.

Although earlier in the day the Republican governor praised the bipartsian effort that resulted in the passage of historic benefits legislation on Thursday, he made it clear that it would not make his approach to the budget any more flexible.

In a joint statement, Senate President Stephen Sweeney (D-Gloucester) and Assembly Speaker Sheila Oliver (D-Essex) said the governor’s rejection of their budget shows he is not interested in improving the lives of the state’s working class, a theme likely be echoed by Democrats in the coming week as the budget battle heightens.

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"We appreciate the governor’s input, but for all his rhetoric it’s clear his budget policies have done nothing to improve the lives of working-class New Jerseyans suffering under his property tax increases and high unemployment," Oliver said.

Last month, David Rosen, the budget officer with the non-partisan Office of Legislative Services, estimated that the state would realize $913 million in unexpected revenue through June 2012. But State Treasurer Andrew Sidamon-Eristoff is projecting a more conservative $511 million.

Christie has certified the lower figure as part as his role as governor, and says the state can expect $29.6 billion in revenue — with nearly $700 million in surplus in the fiscal year that begins July 1.

"Following modest revenue estimates that are based in reality is the only responsible course to avoid the same type of panicked, mid-year cuts that have plagued overly optimistic budget projections in prior years, " Christie said in the news release. "That is our limit and our guidepost in developing a responsible, balanced and constitutional state budget."

Democrats are using the higher revenue estimate, combined with other measures, to provide an additional $1.1 billion for public schools, to restore cuts to Medicaid programs for the working poor and to provide additional property tax relief to the elderly.

The Democratic plan, which has yet to be formally released but must be approved by next Friday, the beginning of the new fiscal year, will push spending over $30 billion.

Democrats are also seeking a tax on income above $1 million to send money to suburban school districts in order to fully comply with a school financing formula established in 2008.

"The governor, of course, has the right to certify revenues, but we disagree with him and have good reason to do so," said Assemblyman Lou Greenwald (D-Camden), chairman of the Budget Committee. "We trust our own figures and remain hopeful the governor will put his obsession with building his national conservative credentials aside and instead do what’s right."

Rank-and-file Democrats Friday expressed frustration with the legislative leadership for not extracting any budget concessions from the governor as part of the health and benefit negotiations, which has divided the party.

Assembly Majority Leader Joe Cryan (D-Union) said the millionaire’s tax should have been "non-negotiable, but the reality is it wasn’t part of a discussion for pension and benefits, and therefore the leverage on it is limited."

Assemblyman Tom Giblin (D-Essex) said he assumed that Democrats got a "wink" from the governor on the budget. "If they didn’t, then what’s the point," he said. "If he rejects it, it’s not going to be good for the moral of the Assembly and Senate."