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Star Ledger..............'The 'cold turkey' budget plan Corzine's proposed $500 million spending cut is greeted by lawmakers' silence' .....Wednesday, February 27, 2008
Governor hopes smallest towns will feel the urge to merge Wednesday, February 27, 2008 Star-Ledger.............. 'The state's smallest towns -- 323 of them -- will have to think long and hard about staying small'
Asbury Park Press February 27, 2008
Brick school-closing proposal result of state aid, budget cap
The 'cold turkey' budget plan
Corzine's proposed $500 million spending cut is greeted by lawmakers' silence
Wednesday, February 27, 2008
BY ROBERT SCHWANEBERG AND JOE DONOHUE
Star-Ledger Staff
Since he took office, Gov. Jon Corzine has been warning lawmakers that unless they reduced state debt, future budgets would have to hack away at state programs and cause pain for nearly everyone.
Yesterday he showed them how much it will hurt.
The governor unveiled a spending plan for next year that pares property tax rebates, ending them for households earning more than $150,000. It slashes aid to municipalities by $190 million and cuts hospital assistance by $143 million. It eliminates 3,000 of the 68,430 jobs on the state payroll and three Cabinet-level agencies: the departments of Agriculture and Personnel and the Commerce Commission.
It cuts spending in every department and, at $33 billion, is $500 million less than the budget he signed last June.
The reaction from the lawmakers who heard Corzine's proposal in the Assembly chamber in Trenton: dead silence. Not once was his 24-minute speech interrupted by applause.
"There's no sugarcoating it; this is a tough budget," Senate President Richard Codey (D-Essex) said.
Corzine called it "a turning point in the fiscal management of our state" -- a rejection of "the patterns of overspending and tortured borrowing that burden our taxpayers." He declared it "cold turkey therapy for our troubled spending addiction."
"It doesn't spend more than we have. It doesn't borrow to pay operating costs. It doesn't raise taxes," the governor continued. Nonetheless, it fulfills "the core responsibilities of government" by protecting "the most vulnerable," preserving "property tax relief for the middle classes" and providing "the largest increase in school aid ever," he said.
Thanks to a $614 million boost in school funding, about half the state budget would be devoted to property tax relief, up $73 million from this year. That category includes $2.5 billion in direct aid to homeowners, $11.5 billion for schools and $1.8 billion in aid to municipalities.
But last year's increased rebates -- the prime achievement of a special session called by Corzine to help homeowners squeezed by highest-in-the-nation property taxes -- would be cut by $534 million. Households earning more than $150,000 would lose their rebates, while renters and those earning more than $100,000 would see them scaled back.
Sen. Leonard Lance (R-Hunterdon), who repeatedly warned that the state could not afford to continue paying the higher rebates, said: "I have been proved right today on that. I therefore conclude last year's program was an election-year gimmick."
Senate Minority Leader Tom Kean Jr. (R-Union) said Republicans have demanded spending cuts for years and "it sounds like the governor is beginning to hear that message."
Corzine said he has indeed been listening -- to the "frustration and anger" of taxpayers attending the town hall meetings he arranged to explain his plan to pay down state debt by sharply increasing highway tolls.
A new Fairleigh Dickinson University/Public Mind poll found 64 percent of the public opposes Corzine's plan while 51 percent favor "very steep budget cuts" instead.
But while acknowledging his toll proposal is not popular, Corzine challenged his critics to propose a better way to reduce the state's $32 billion of debt. Carrying that debt will cost $2.7 billion next year.
"Some will argue that our debt burden isn't a problem, that we should just deal with it some other day. But that's not an option," Corzine said. "It's clear that increasing debt payments crowd out other important priorities every year."
Kean said Corzine "doesn't believe the road tax is dead." The Republican leader said he considers it dead but "the citizens of New Jersey need to remain vigilant."
'TOUGH SELL'
Brigid Harrison, professor of political science at Montclair State University, said the budget will be such a "tough sell" that it may breathe life into a revised version of Corzine's toll plan.
"I think part of the political motivation is it will make the toll plan that much more attractive," Harrison said.
Corzine's chief of staff, Bradley Abelow, said the state's financial condition drove the budget.
"I totally reject the notion that this is a gloom-and-doom budget to promote an agenda," Abelow said.
Legislative leaders of both political parties said they would examine Corzine's recommended budget cuts and may propose some of their own.
"Every single cut the governor has proposed will be looked over with a magnifying glass," Codey said. "We don't want to do anything that really impacts the quality of life of New Jersey residents, but at the same time be mindful of the fact that we do have to cut the budget."
The Legislature and governor must agree on a new budget by June 30, the end of the state's current fiscal year.
The Commerce and Industry Association of New Jersey called the proposed budget "an important first step in restoring New Jersey to fiscal sanity."
State Chamber of Commerce President Joan Verplanck said, "We applaud the governor" for proposing a budget that "will begin to repair the damage" from a decade of "negligent spending plans."
But Steve Lonegan, director of the state chapter of Americans for Prosperity, said raising taxes early in one's term -- as Corzine did -- and then freezing spending is "a typical trick" used by politicians.
"This," Lonegan said of the budget proposal, "is nothing but freezing an already bloated government at the bloated level."
Staff writers Claire Heininger and Josh Margolin contributed to this report. Robert Schwaneberg may be reached at rschwaneberg@starledger.com or (609) 989-0324.
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Governor hopes smallest towns will feel the urge to merge Wednesday, February 27, 2008 BY TOM HESTER Star-Ledger Staff The state's smallest towns -- 323 of them -- will have to think long and hard about staying small: Gov. Jon Corzine's budget proposes a modest carrot and a serious stick to prod them into joining their neighbors, to reduce operating costs. The budget Corzine presented yesterday drastically reduces state aid to towns of fewer than 10,000 residents, but offers them a share of $32 million in grants to help them consolidate with other towns or share services. Towns with populations under 5,000 would receive no state property tax relief aid, and those between 5,000 and 10,000 people would see their aid cut in half. "The effort is to make them more efficient and move toward consolidation," said Department of Community Affairs Commissioner Joseph Doria. "The incentives are: We have the grants for shared services and working toward consolidation. That's the carrot. The stick is not receiving the aid." The governor's get-tough budget also would force 90 small and rural towns that don't have police departments to come up with $20 million to pay for the police protection that the State Police now provide. Local officials say the cuts would force them to cut services or raise property taxes -- a double whammy for those residents who also stand to see their property tax rebate checks from Trenton cut or eliminated altogether, another budget-cutting proposal. William Dressel, director of the New Jersey State League of Municipalities, was angered by the changes targeted at small towns, saying "these arbitrary population limits seem designed to force local officials into otherwise unwise and inefficient consolidations." Louise Wilson, a Democratic committeewoman in Montgomery, Somerset County, said the idea that shared services will reduce property taxes is a myth. "Shared services and consolidation give you some efficiencies, and it is certainly a smart way to go with a lot of services, but they are not the answer," Wilson said. "I know in my town we will have to figure out how to mete out cuts across the board or we will just have to discontinue something entirely. This will be tough. People will feel the effects of this budget." The 243 municipalities with populations over 10,000 will see their state aid reduced to the amounts they received in the 2006-07 budget. Special aid to financially struggling cities has also been eliminated. The governor said 90 percent of homeowners will receive a property tax rebate. Those earning less than $100,000 -- 70 percent of households -- should expect to receive the same rebate as last year. Those earning between $100,000 and $150,000 will receive two-thirds of the amount. Households with an income of over $150,000 will no longer be eligible for rebates. In addition, renter rebates will be reduced. The senior citizen tax freeze will be expanded to an income level of $75,000, a break for over 150,000 more senior households. Corzine's proposed budget reduces overall municipal aid and direct tax relief to property owners and tenants by $541 million. Total state aid to municipalities and schools and direct relief to taxpayers total about $16 billion. The planned aid cuts have municipal officials warning of reductions in public services and possible property tax hikes. "I'm sure legislators will work with local officials and be mindful of their concerns," said Assembly Speaker Joseph Roberts (D-Camden). "But the reality of New Jersey is we have to do everything we can working with local officials to push for regionalization and consolidation. We have over 500 municipalities and over 600 school districts. That is just plain inefficient." © 2008 The Star Ledger © 2008 NJ.com All Rights Reserved. |
February 27, 2008
Brick school-closing proposal result of state aid, budget cap
By CHRIS LUNDY
TOMS RIVER BUREAU
Parents have been up in arms over a proposal to close the Primary Learning Center and Laurelton School buildings amid a budget crunch, making school officials reach out to explain their reasoning.
Early this year, a group of parents argued against the Board of Education's initial plan to close the Osbornville and Herbertsville schools, instead suggesting closing the Primary Learning Center.
This resulted in another outcry, with a small protest held Friday at the learning center. Petitions protesting the decision are expected to be delivered at Thursday's board meeting.
Teachers at the PLC — where kindergartners and some special-education pupils are taught — said Thursday they were devastated about the prospec-tive closure, but did not speak on the record. School union representative Frank Darcy declined comment.
Some parents were unaware of the situation.
Justin Postell of Farmingdale has a 5-year-old daughter, Selena, who attends the school. He wasn't aware of the plan to close the school until approached by a reporter when picking her up Thursday.
"My daughter always talks about the school," he said. "The teachers teach very well. I hear good things even from other townships."
When Selena was asked what she likes about the school, she said "the learning."
The education will not change, just the location will, interim Superintendent Melindo Persi said.
Persi and other district officials have been meeting with groups of Republicans and Democrats, a mothers' group and other organizations to describe the budget situation.
On Feb. 6, the district invited the public to give ideas on how to close a $3.5 million gap and balance the budget. This is how the closure of the PLC came up. Responses to suggestions are online at www.brickschools.org.
The board has planned to present a $141,058,983 budget for the next school year with a $92,464,728 tax levy.
Increases over the 2007-08 spending plan amount to $7 million in salaries, $2 million for insurance, $1 million for utilities and $900,000 for pensions.
State law limits the increase in a tax levy from one year to the next to 4 percent. That, and what officials said is an unfairly small amount of state aid, created a $3,515,650 gap between anticipated tax revenue and state aid and the costs to run the district in 2008-09.
The district will receive an additional $780,838 in state aid, bringing the total to $39,822,744. Lawmakers came up with the new funding formula, which gave the district a 2 percent increase, too quickly, springing the numbers on school districts, Persi said.
"How can we do long-range planning without information?" Persi said.
Closing the PLC and Laurelton might not yield sufficient savings, Persi said, noting other schools might have to close in the future.
"We just can't nickel and dime it anymore," he said.
The only new position in the proposed budget is an assistant superintendent for curriculum, Persi said. The job is being performed on a per diem basis for $54,000 now, so the difference between this and the full-time salary of $130,000 is $76,000.
The Laurelton School, an alternate school that houses five classes, was built in 1934, Persi said. The district is in the process of getting it appraised for an eventual sale.
The sale of the school would replenish the district's surplus, some of which is being spent next year.
The students from the Laurelton School will then be taught in the Chambersbridge Road building now housing the Primary Learning Center.
Persi said he doesn't want to sell the PLC, because it could be a revenue source in the future.
PLC students would be relocated to classrooms set up in elementary schools they would normally move on to, Board of Education President Cynthia McCarthy said. There will be room in these buildings because of steadily declining enrollment. The district is losing about 250 students a year, she said.
"Most school districts are facing declining enrollment," McCarthy said. "It's a trend. People aren't having large families anymore" and are waiting to have children until they are older.
Brick also has little room for large housing developments for families with school-age children.
"Our town's tapped out," McCarthy said.
The district ordered a demographic study that was prepared in October by Statistical Forecasting LLC of Secaucus, using information such as birth rates, developable land and building permits.
While the population in town was expected to increase, school enrollment was forecast to decrease.
On Oct. 15, 2006, the district's enrollment was 10,712, which was down 613 since the 2001-02 school year, according to the study.
Births in 1996 were recorded at 962. The figure dropped to 786 in 2006.
The number of kindergarten children dropped from 718 in 1996 to 624 in 2006.
In 2011-12, the enrollment is expected to be between 9,409 and 9,563.
