A blow to the budget

Friday, March 16, 2007

The self-congratulations over the governor's re cently proposed $33.3 billion budget, a document that was said to include no new taxes, may have been a bit premature.

Lawmakers were delivered a big dose of bad news this week from David Rosen, the budget officer for the nonpartisan Office of Legislative Services, who told the Assembly Budget Committee that state Treasury Department revenue projections may be off by as much as $299 million this year and $354 million for the budget year that begins July 1.

Mr. Rosen's $653 million wet blanket was delivered as budget committees of both houses begin hearings on Gov. Jon Corzine's FY 2007-2008 budget. If Mr. Rosen's projections are correct, there goes the $600 million surplus the governor built into the new budget. And, since by law only a balanced budget can be adopted, something has to give.

If you're in higher education, you probably are wondering if the axe will fall on what had been one of the first meaningful increases in years. Towns and school districts may be concerned that aid, which went up for the first time in four years, will be scaled back.

"We recognize that our forecast ... injects unwelcome uncertainty" into drawing up the next state budget, Rosen told the panel. He added, however, that forecasting revenue projections was similar to tracking the path of a hurricane. "At this point we are posting the watch flags and hoping they prove unnecessary."

The governor and lawmak ers are paying the price for years of fiscal mismanagement, the blame for which lies with both parties. The state has taken on too much debt, given away the farm when it comes to health and retirement packages for public workers, failed to replenish those same workers' pension funds and allowed the Transportation Trust Fund to nearly go out of business.

And Mr. Rosen's gloomy news was not disputed by the administration.

State Treasurer Bradley Abelow testified that the state's long-term budget problems are "far from solved." New Jersey, he said, "is perilously close to slipping into a state of fiscal paralysis."

On the issue of the debt, Mr. Abelow told legislators that the $2.7 billion the state pays each year for debt service is like a consumer's minimum payment on a credit card. Anyone chok ing on big credit-card balances knows that the minimum payment will continue to keep him in debt for a long, long time.

That situation, Mr. Abelow said, will keep the state from finding revenues to "invest in our state's future."

So, what's to be done? Look for the Legislature to be amen able to a Corzine administration plan that will put the New Jersey Turnpike and perhaps other toll roads up for sale. That will prove to be a politically risky proposal given the negative reaction from many lawmakers. But if the alternative to bailing the state out of its financial troubles is raising taxes, those same legislators may change their tune in a hurry.

© 2007 The Times of Trenton © 2007 NJ.com All Rights Reserved. Corzine enacts key parts of tax reform Governor promises he will soon sign final bill, which includes credits for homeowners Friday, March 16, 2007 BY DEBORAH HOWLETT Star-Ledger Staff Without much fanfare, Gov. Jon Corzine yesterday signed three key property tax reform measures into law, including a bill that creates an Office of the State Comptroller to act as a "watchdog" over government spending. Corzine also said he would "soon" sign the final, centerpiece bill that was delivered after an often-contentious, six-month special legislative session on property tax reform. The bill, which has been on his desk for nearly six weeks, provides most homeowners with a 20 percent tax credit and limits yearly growth in local tax levies to 4 percent. At that point, Corzine said, there will be reason to celebrate. "We'll have a complete package," Corzine said. "We want to come together with a presentation of what has been accomplished. Looking at this piecemeal doesn't really do justice to what the Legislature and those of us involved in the process have presented." Corzine had been hinting that he might not sign any of the tax reform legislation unless lawmakers delivered a bill banning the practice of dual office-holding. At least 20 of the state's 120 elected state legislators also serve in another elected office. The ban on dual office-holding has been tied up in a dispute over language that would allow some lawmakers to be "grandfathered" in so that they may continue serving indefinitely in the other elected offices they hold. But with a deadline for signing the comptroller bill fast approaching -- Corzine had only until tomorrow to veto it, or it would become law without his signature -- the governor relented and signed the measure. Corzine said he had an agreement with legislative leaders that they would deliver a bill in June, before he signs the state budget, so he was willing to give them a "second bite at the apple." But Corzine warned, "We will have difficulty at budget time if the understandings we have are not in place. I've been pretty adamant on that." The signing of the comptroller bill represented a victory for Corzine on one of the first goals of his administration. In his inaugural address 14 months ago, he called for an elected state comptroller with virtually unlimited authority to ferret out fraud and abuse. The bill he signed is a scaled-down version. The comptroller is appointed, rather than elected, and some have suggested that the office's powers will be far too weak. Sen. Barbara Buono (D-Middlesex) withdrew as sponsor of the bill before it passed the Senate, saying it had been "emasculated," and voted against it. "It doesn't get to the heart of the problem," she said yesterday. "At the local level, there are a lot of people with cash lurking and trying to open doors and this bill doesn't address that." Corzine acknowledged that the property tax measures that have been passed were not perfect "10s." But, he said, they are vast improvements over the status quo. "I'm quite enthusiastic about the comptroller bill," Corzine said. "It is significantly stronger than some might have thought. It gives us a lot of authority to do the things we need to do." In addition to the comptroller bill, Corzine signed a measure that requires public officials who commit crimes related to their office to forfeit pensions earned from that job. He also signed a bill to appoint a commission that will study which of the state's 616 school districts and 566 towns would benefit from being consolidated or sharing services. Sen. Bob Smith (D-Middlesex) said the commission is a "good first step," even if protests from local leaders stripped away the authority to force consolidations, as the commission originally was envisioned. "One of the things that it does is raise the flag to the proposition that we have too much government in New Jersey," Smith said. "The significance in my mind is that we've started a process where the 800-pound gorilla in the property tax debate is being addressed." Deborah Howlett may be reached at dhowlett@starledger.com or (609) 989-0273. Assembly approves 7 autism bills Friday, March 16, 2007 BY TOM HESTER Star-Ledger Staff The Assembly last night approved a package of seven bills designed to improve the detection, treatment and awareness of autism in New Jersey. The package, which moves to the Senate for consideration, picked up support following last month's release of a report by the federal Center for Disease Control and Prevention that New Jersey had the highest reported rate of autism among 14 states studied. New Jersey's rate was 1 out of every 94 children; the national rate is 1 out of 150. Assembly Speaker Joseph Roberts (D-Camden), a prime sponsor of the package, said the bills address autism from early childhood through adulthood and will ensure New Jersey will be a national leader in helping families cope with the neurological disorder. "These measures will provide hope to residents with autism and their loved ones who need greater levels of support and assistance," Roberts said. "The overwhelming support shown for these measures underscores the impact that au tism is having on New Jersey's families, schools and health institutions." A key bill (A2306) appropriates $500,000 to create a centralized statewide autism registry. A second measure (A4055) would train teachers in autism awareness. Another bill (A4056),would require pediatricians to screen for symptoms of autism, and another (A4057) would create a panel to study the needs of autistic adults. A fifth bill (A4058) would establish an autism awareness program for emergency medical technicians, police and firefighters. Another measure (A4059) extends funding for autism medical research and treatment, and the remaining proposal (S694/A4054) would restructure the governor's Council for Medical Research and Treatment of Autism. The Assembly also passed a bipartisan resolution urging the state Department of Health and Human Services to study the possible rela tionship between autism and ultrasounds. Measure passes allowing immediate online posting of legislative votes Posted by the Asbury Park Press on 03/16/07 BY GREGORY J. VOLPE GANNETT STATE BUREAU TRENTON — After nearly a year's delay, the state Assembly unanimously approved a measure to immediately post its voting records online for public scrutiny. The measure passed in the Senate last year, then languished seemingly forgotten after the Assembly amended it last June to require the Office of Legislative Services to update online voting records within 24 hours. After being reminded of the measure by a reporter, Assemblywoman Valerie Vainieri Huttle, D-Bergen, got the bill she is sponsoring posted for a vote during Sunshine Week — a national, newspaper-driven initiative to promote openness in government. "There is nothing more important in our service than having the general public be able to see the work we're doing on their behalf," said Assemblywoman Jennifer Beck, R-Monmouth, another sponsor. The measure passed 79-0. Assemblyman Fran Bodine, R-Burlington, left before the vote. The session was extended for several hours after a St. Patrick's Day celebration and speeches honoring outgoing Assemblyman Peter Barnes Jr., D-Middlesex. Barnes was confirmed by the Senate as chairman of the State Parole Board. He was replaced in the Assembly by his son, Peter Barnes III, an Edison councilman who won the endorsement of Middlesex County Democrats on Wednesday night. The voting database measure won't head to Gov. Corzine during Sunshine Week. Because the Assembly amended it in June, the Senate needs to reapprove it, and Thursday was the last voting session before the Legislature's budget recess. The Senate returns in May. Other bills approved by the Senate or Assembly and sent to Corzine would: Authorize the Port Authority of New York and New Jersey to purchase Stewart International Airport in Newburgh, N.Y., as a fourth major New York-area airport; it also give the authority permission for another New Jersey airport. Require companies to allow people to opt out of receiving unsolicited faxes. Mandate that companies with more than 200 employees provide 180 days advance notice to the state of a plant closing or a mass layoff of more than 50 employees; employers with 49 to 199 employees would have to give 90 days notice. Prohibit the sale of cigarettes that don't meet fire-safety performance standards intended to keep them from continuing to burn if unattended. Bills approved by the Senate and sent to the Assembly would: Upgrade the penalties for recruiting minors to join a street gang to a second-degree crime, punishable by a fine up to $150,000 and up to 5 to 10 years in prison. Prohibit anyone convicted of using a computer to help commit a sex offense from using a computer or accessing the Internet while on parole and allow the Parole Board to impose Internet restrictions on other sex offenders. Require online dating services to tell users whether they conduct criminal background screenings on people looking for dates. Increase mandatory minimum sentences imposed on people convicted of luring or enticing who have previously been convicted of rape, sexual contact or endangering the welfare of a child. Bills approved by the Assembly and sent to the Senate would: Provide for sentences of life in prison without parole for anyone who murders a child 16 years or younger; currently, that applies for murders of children under 14 who were also sexually assaulted. A Senate committee also advanced a proposal to the Senate floor that would exempt active-duty military personnel serving outside of New Jersey from the state's income tax. Print | Close Abbott schools take another hit Friday, March 16, 2007 By LAWRENCE AARON RECORD COLUMNIST ANOTHER WINTER of discontent is ahead for the state's Abbott school districts next year as Governor Corzine thumbs his nose once again at their requests for increased funding for the school year. The 31 Abbott districts that serve the poorest of the state's residents can expect to have their present budget dollars stretched to the limit, while the governor indulges non-Abbotts and tax protesters. The non-Abbotts can stop whining about being second-class citizens denied Abbott cash. They'll get a state welfare check, too. This will stifle anger and resentment that the poor get more. The state's aid package of $194 million is the largest increase in the past eight years for the non-Abbott districts. In the budget now under consideration, most Abbott schools will see no increase in the funding cushion mandated by a 1997 Supreme Court ruling. For the past few years Abbott funding increases were sought to meet rising costs of school programs and contractual agreements with teachers. Passaic schools would get only a 0.1 percent increase in the state budget under consideration. Similar stingy sums are anticipated in a few other Abbott districts. The preliminary estimates are just enough so that the Corzine administration can defend itself against accusations of making the Abbott schools sacrificial lambs for the sake of wealthier districts. In reality, the bulk of the Abbotts get no increase again this year. Passaic won't see more than a pittance, not enough to make a real difference in anything but a Department of Education press release. This is the second year of budget challenges in Corzine's barely one-year-old administration. It's the second Abbott snub, too, demonstrating a lack of sensitivity for those most in need of an education. By pecking away at Abbott funding to the detriment of kids who need it, the Corzinistas send the wrong signal -- indifference to the critical importance of a quality education for the poorest kids. It's what helps them steer clear of the pipeline that extends from poor schooling to prison. Basic test scores have improved in some Abbotts -- not dramatically, but enough to show the extra money does precisely what the Supreme Court ruling intended. Caving to pressure Corzine is obviously caving in to criticism from wealthier districts resentful of the Supreme Court's Abbott mandate requiring the state to supplement the budgets in districts serving poor kids. Abbott opponents argue that all districts have been saddled with similar problems of meeting the rising costs for wages, health care and supplies. The funding plan for non-Abbotts is part of the administration's attempts to address New Jersey's runaway property taxes, which are the highest in the nation. Revising the formula allocating state funds for schools is the critical piece in Corzine's aggressive initiative on property tax reform. The Abbott money serves the remedial needs of disadvantaged children from low-income homes. It's the price we pay for living in society of severe race, class and income divisions. After-school and summer programs getting slashed have more serious consequences in Paterson than in districts where kids have other options at home. The biggest shame, however, is non-Abbott districts harboring resentment against the Abbott poor. This is a sorry case of pitting the low-income groups against one another, the less poor against the poor. Now with the formula under review, working class families and kids from financially disadvantaged households outside of the Abbott districts may benefit -- but by very little -- from the funding formula. Elmwood Park, Cliffside Park, Teaneck and Englewood, for example, will enjoy state aid increases between 11 and 18 percent. Let this not be the beginning of crippling Abbott due to New Jersey's history of chronic overspending. Lawrence Aaron is a Record columnist. Contact him at aaron@northjersey.com. Send comments about this column to letterstotheeditor@northjersey.com.