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Burlington County Times - Highlights of NJ budget approved Thursday - THE ASSOCIATED PRESS Asbury Park Press - $1.2B tax hikes get OK - GANNETT STATE BUREAU
North Jersey - Hearld News Record/Star Ledger STATEHOUSE Bureau -UPDATE: Divided Legislature passes $29B budget
Press of Atlantic City - State lawmakers approve tax-laden budget
Burlington County Times - Highlights of NJ budget approved Thursday
By: THE ASSOCIATED PRESS June 26, 2009
New Jersey lawmakers on Thursday approved a $29 billion budget proposed by Gov. Jon S. Corzine. Since he first introduced it in March, it's become more austere as revenue projections fell. The proposal was increased a bit last week, though, when a tax amnesty program brought in nearly $500 million _ enough to restore some property tax rebates and deductions that had been eliminated.
The budget is about $4 billion less than the one adopted a year ago, before spending was trimmed by about $2 billion. It's also less than the first budget Corzine proposed, in 2006.
If adopted, the budget will take effect on Wednesday, July 1.
Here are highlights:
INCOME TAXES
_Raises income taxes for one year by .75 percent on family income over $500,000, moving that top tax rate to 10.25 percent.
_Eliminates, for one year, property tax deduction on next year's state income tax for all taxpayers who earn more than $250,000, and caps deductions at $5,000 for those who earn $250,000 or less.
PROPERTY TAXES
_Eliminates property tax rebates for non-senior citizen, non-disabled homeowners with incomes over $75,000.
_Provides two-thirds of last year's rebate amount to homeowners who earn between $50,000 and $75,000. Those rebates are to average about $700.
_ Provides last year's rebate amount to all senior citizens, disabled people and to others who earn under $50,000. For senior citizens, the rebates would average about $1,200; for non-seniors with incomes under $50,000, they would average $900.
_Eliminates property tax rebates for renters.
_Maintains property tax freeze program for senior citizens _ worth an average of more than $1,000 per household.
SIN TAXES
_Raises tax rates on wine and liquor _ but not beer _ by 25 percent.
_Increases taxes on cigarettes to $2.70 per pack _ up 12.5 cents from the current tax.
_Taxes lottery winnings over $10,000.
STATE EMPLOYEES PAY AND JOB SECURITY
_Freezes salaries for state employees, delaying a 3.5 percent raise that was scheduled to go into effect this year until 2011.
_Requires 10 unpaid furlough days for workers, but gives them get seven paid days off they can use starting in 2011.
_Avoids layoffs for union-represented state workers through 2010.
EDUCATION
_Increases spending in public school classrooms by $374 million.
_Increases college tuition aid grants by $37 million.
_Decreases aid to schools by $94 million, largely by deferring $560 million in pension contributions for school employees.
_The federal economic stimulus contains $2.2 billion that goes directly into various items in the budget _ much of it for education.
HEALTH COSTS
_Decreases money to hospitals by $20 million.
_Increases aid to county psychiatric hospitals by $15 million.
_Expands Family Care program to provide health care for children by $149 million.
MUNICIPAL AID
_Decreases aid to cities and towns by $31 million.
Asbury Park Press - $1.2B tax hikes get OK
By MICHAEL SYMONS • GANNETT STATE BUREAU • June 25, 2009
lawmakers, divided along partisan lines, approved a $29 billion state budget Thursday that relies on $1.2 billion in tax increases and $2.2 billion in federal stimulus aid as it scales back grants, programs and property tax rebates.
The Assembly passed the budget 45-34, with all Democrats present except two in favor and every Republican against it. The tax increases passed by similar margins. The Senate passed the budget 22-17, then approved the tax increases — all but one with the minimum 21 votes needed for passage.
Democrats said the budget cuts spending to deal with the impact of the recession but hailed it for keeping property tax rebates for all seniors and any household with income of $75,000 or less, capping tuition hikes at state colleges and universities at 3 percent and avoiding cuts other states are making to core programs.
"Nobody here, Democrats or Republicans, really wants to do a budget like this," said Senate President Richard Codey, D-Essex. "Nobody in their wildest dreams ever thought that we would have to do a budget like this just a year ago. Nobody. But this state is like every other state throughout this country. Whether they're run by Republicans or Democrats, it does not matter. ... We're all in the same boat."
"We have done the very best under the very worst of all possible circumstances we could have faced," said Assemblyman John Burzichelli, D-Gloucester.
Republicans — who took turns on the Assembly floor reading emails from residents with complaints about state government — said the budget defers costs to next year rather than solves problems and breaks promises about providing lasting property tax relief.
"This budget is a Band-Aid. It is a Band-Aid leading down a road to a disaster," said Sen. Kevin O'Toole, R-Essex.
"Our state is on the verge of financial collapse, not just because this year or even last year's budget, but rather the totality of taxing, spending, borrowing that has a stranglehold not only on their wallets, but on the spirits of the people who live in this state," said Assemblyman Joseph Malone III, R-Burlington.
Democrats at times responded directly to the residents' emails and at other times read from testimony from advocacy groups that were thankful the budget didn't gut the state's spending on safety-net programs.
In addition to the budgeted state spending, the government will spend nearly $14 billion in federal aid and $6.2 billion from federal and revolving funds that aren't counted in the state budget's bottom line.
Gov. Jon S. Corzine has until next Tuesday to sign the budget.
Voting began just after noon in the Assembly, which — in a nod to the state constitutional requirement that revenue-raising bills originate in the Legislature's lower house — started by quickly approving $167.6 million in tax increases on cigarettes, liquor and wine, businesses and certain insurance premiums.
Then the Assembly moved to a lengthier debate about raising income taxes on households with incomes of $400,000 or more, suspending property tax deductions for households with incomes over $250,000 and taxing New Jersey Lottery winnings over $10,000. In all, income taxes are being raised by $1.071 billion, though all those changes except the lottery-winnings tax are scheduled to expire after one year.
Assemblyman Richard Merkt, R-Morris, said the sales tax was intended to be a temporary levy when it was enacted 40 years ago. "Pardon my cynicism if I question whether a tax increase in New Jersey is ever temporary. ... The odds are, based on history, that we're going to have this forever," he said.
"We're actually taxing people who get lucky in this state," said Assemblyman Jon Bramnick, R-Union, mocking the tax on lottery winnings. "This is the ultimate in the Legislature's day, or year. ... I think we're off the charts now."
Republicans said there will remain a deficit next year of $5 billion — maybe even twice that, some senators estimate. Assemblywoman Bonnie Watson Coleman, D-Mercer, said that will require more tough decisions and that the state will benefit from economic policies of President Barack Obama nationally and Corzine in New Jersey.
"I look forward to there being a more energized, energetic and healthy economy, predicated in part by new and more sane and reasonable policies coming out of the federal government with the capacity to provide more stimulus to our state," said Watson Coleman.
Democrats said Republicans have proposed budget cuts that amount to less than 10 percent of the state's deficit, many of which they said target cities for political purposes, and are advocating spending increases and tax cuts simultaneously.
"We are not in Disneyland," said Assemblyman Gary Schaer, D-Passaic.
Assemblyman Louis Greenwald, D-Camden, said state spending is down $3.9 billion from the budget adopted a year and is $2.2 billion less than Corzine's first budget in 2006. Watson Coleman several cuts were made to programs and alternatives considered.
"This represents, we believe, an opportunity to preserve the quality of life for those that can afford it and at the same time protect the absolute needs of the individuals who cannot do it for themselves," Watson Coleman said.
NEW TAX NUMBERS
Some details about the tax changes that support the budget:
• Income tax rates will rise from 6.37 percent to 8 percent on household income between $400,000 and $500,000; from 8.97 percent to 10.25 percent for income between $500,000 and $1 million; and from 8.97 percent to 10.75 percent on income over $1 million.
• Cigarette taxes are going up 12.5 cents per pack to $2.70, beginning July 1.
• Taxes are going up by 3.5 cents on a typical 0.75 liter bottle of wine and 22 cents on a 0.75 liter bottle of liquor, beginning Aug. 1.
• Businesses will continue to pay a 4 percent surcharge on their corporate taxes that has been charged for three years but was supposed to expire.
• Taxes on group accident and health insurance premiums will go up for one year. Taxes on high-risk insurance policies, such as those for catastrophe-prone beachfront homes, will jump permanently from 3 percent to 5 percent.
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UPDATE: Divided Legislature passes $29B budget Thursday, June 25, 2009 BY JOHN REITMEYER AND ELISE YOUNG NorthJersey.com STATE HOUSE BUREAU Taxes will go up, rebates will go down and Democrats and Republicans will argue through this election year on whether a $29 billion state budget approved Thursday helps or handicaps New Jersey. The state Assembly needed more than four hours to debate the budget — much of that time taken by Republicans who read aloud comments from frustrated residents. In the end, not a single Republican voted to approve the measure, which passed 45-34. The Senate’s debate lasted half as long with the same result — a 22-18 vote with no Republicans onboard. Governor Corzine praised his fellow Democrats for signing off on the budget and called the GOP’s boycott “unfortunate.” Senate President Richard J. Codey, D-West Orange, offered some of the most fiery words of the night, invoking 8 percent unemployment rates, declining 401(k)s and pension funds, and rising foreclosures. “Who did that? Jon Corzine? The Legislature?” Codey asked. “No. It was Washington, D.C.” “What they allowed was despicable and disgraceful. They brought on this recession — I would say depression. Not our governor. Not any of us here. We’re all victims. Whatever our names are, whatever our party is, we’re all victims of what happened down in Washington, D.C,” Codey said. But Minority Leader Thomas H. Kean Jr., R-Union, said the state brought problems on itself. “We are the only state in the union that will have fewer private-sector jobs at the end of the decade than at the beginning,” Kean said. “We’re the only state in the union that will spend less on higher education this year than we did eight years ago. Those were decisions made in this state capitol. Those were decisions made here.” Assemblyman Louis Greenwald, D-Camden, praised a successful tax amnesty period during which nearly $700 million was collected. That money, totaled a week ago, helped legislators restore property-tax rebates for most residents, except renters and those who make more than $75,000 a year. He also pointed out that the proposed budget is $4 billion less than that for fiscal 2009. During more than four hours of debate, though, Republicans stuck to one theme: New Jersey is flat-out unaffordable. Some read e-mails and letters from their constituents. One writer, who identified herself as a resident since 1947, said she was moving to Pennsylvania, leaving all her friends and doctors where she would prefer to live. “Many of my constituents [are] upset that they’re being forced to move or even consider moving from this state,” said Assemblywoman Denise Coyle, R-Somerset. “The seniors in my district are so angry. All they want to do is be around their children and grandchildren, but they can’t.” All 80 seats in the Assembly are up in this November’s election, as is Governor Corzine’s four-year term. Thursday’s agenda in both the Senate and Assembly was heavy with financial matters — everything from a package of tax increases needed to support the budget to a stimulus bill that critics said was loaded with giveaways for developers. Supporters say the stimulus bill would help jump-start the state economy. The measure offers tax breaks to businesses that create jobs near mass transit hubs. It also eliminates some fees for developers. It cleared the Assembly 49-27 and passed the Senate 21-18. “Local officials and businesses need more tools and greater flexibility to work together in planning and building the infrastructure projects that will bring new jobs and economic opportunities to New Jersey,” said Assembly Speaker Joseph Roberts, D-Camden. “This multifaceted effort sends the clear message that New Jersey is open for business and looking to the future.” The state budget features a number of tax increases, along with deep cuts in funding for state operations. Both were called for when tax revenues plummeted earlier this year much more than expected. Taxes on cigarettes, hard alcohol and wine will be increased. So will the tax rate for personal incomes over $400,000. The budget would reduce the size of the property tax rebate program, limiting it to households earning less than $75,000. Exceptions are in place for senior citizens and disabled residents. Households earning up to $150,000 qualified for rebate checks last year and the ceiling was $250,000 the year before. Funding for most rebate checks, however, had been removed altogether from an earlier version of the budget proposal, part of Corzine’s response to record state revenue losses. Lawmakers, after a last-minute, $404 million infusion of cash from a tax amnesty program that ended last week, restored the rebate checks for those who will qualify under the new income limits. |
TRENTON - New Jersey legislators passed the state's $29.9 billion budget Thursday over the lengthy protests of Republicans who said it raised taxes while relying too much on one-time revenue.
Gov. Jon S. Corzine has said the budget is the product of the global recession forcing the state to make difficult decisions.
Corzine, who must sign the budget before Wednesday, when it is due to take effect because the state Constitution requires a balanced budget by the end of the fiscal year in June, praised fellow Democrats and chided Republicans after hearing about the party-line tallies in both houses of the Legislature.
"It is unfortunate that not one Republican member of the Legislature saw fit to support a budget that reduces state spending by 12 percent - an unprecedented downsizing - at the same time it responsibly protects spending on education and provides billions of dollars in much needed property tax relief," Corzine said.
The budget raises income taxes on people who earn more than $400,000, while eliminating property tax deductions for those earning more than $250,000.
At the same time, it suspends the popular Homestead Rebate program for 1.2 million people who received it last year, wiping out most tenant rebates and limiting full rebates to homeowners earning less than $50,000, and seniors and the disabled earning less than $100,000. Partial rebates are available for homeowners earning as much as $75,000, and seniors and the disabled earning as much as $150,000.
It also adds to current sin taxes on cigarettes, liquor and wine.
The budget cuts spending for hospitals by $20 million and municipalities by $31 million, while adding $149 million for FamilyCare and $374 million for schools.
In the Assembly, lawmakers passed the 284-page bill after more than four hours of debate.
Then, in the state Senate, where the sultry weather meant the rule requiring men to wear jackets was relaxed, legislators took about two hours and approved it at about 11 p.m.
Senate President Richard Codey, D-Essex, blamed former President George W. Bush's administration for causing the problems that led to the global economic downturn.
"Nobody here, Democrat or Republican, really wants to do a budget like this," Codey said in an uncommon floor speech. "Nobody in their wildest dreams ever thought that we would have to do a budget like this."
But Senate Minority Leader Tom Kean Jr., R-Union, Morris, Somerset, Essex, said the budget was based on choices made in New Jersey.
"We are the only state spending less on higher education than we did eight years ago," he said. "Those were decisions made in this state capital. Those were decisions made here."
Republicans in the Assembly also attacked the budget, frequently reading letters from constituents to undergird their points.
"The budget increases property taxes, increases sales taxes, increases business taxes. I'll give (Corzine) credit," said Assemblyman Vince Polistina, R-Atlantic. "For one thing, he didn't miss any major revenue streams."
At the same time, the budget cut more than $2.1 billion from dozens of programs and projects, said Assemblyman John Burzichelli, D-Salem,. Gloucester, Cumberland.
"That is not what we, as a legislative body, want to do. ... As the economy restores, we will look to restore what we can, when we can," he said. "I believe we have done the best in the worst of possible circumstances we could have faced."
The budget cleared both houses on largely partisan grounds. In both houses, members of the 1st Legislative District were the only Democrats to side with Republicans.
Sen. Jeff Van Drew, D-Cape May, Cumberland, Atlantic, said that tapping special funds dedicated to beach replenishment, arts, tourism and other causes for the state coffers was the reason for his vote against the budget.
"These represent a trust between the people of New Jersey and their government," he said after the vote.
Assemblymen Nelson Albano and Matt Milam, both D-Cape May, Cumberland, Atlantic, are involved in what observers say are the closest Assembly races in the state, and would face certain condemnation from opponents if they voted for it. Both said their elections did not factor into their votes.
Albano said he voted against it because it took money from beach replenishment, local aid and Jersey Fresh promotions, as well as raised taxes.
"We have to stop taxing the people of the state of New Jersey," said Albano, who added that he voted against three of the four state budgets while in office. "We can't keep adding taxes."
Milam said he had planned to vote against the budget since the governor's budget address in March.
"It took from beach replenishment, tourism, the environment - everything that is important down there," he said.
Lawmakers also approved associated bills that temporarily raised income taxes, with a top 10.75 percent rate second only to Hawaii, increased state taxes on liquor, wine and hard cider by 25 percent and raised the tax on insurance polices from 1 to 2.07 percent.
Van Drew, Albano and Milam also voted against each of them.
The Associated Press contributed to this report.
E-mail Derek Harper:DHarper@pressofac.com E-mail Emily Previti: EPreviti@pressofac.com
