Dems look for way to increase state aid

Tax revenue not up to budget projection

Posted by the Asbury Park Press on 04/2/07

THE ASSOCIATED PRESS

TRENTON — Gov. Corzine's budget plan may propose no tax increase, but leaves many needs unmet.

Legislative Democrats are vowing to do what they can to meet those needs, especially when it comes to schools and health care.

"I promise to work with my colleagues to find whatever extra funding we can," said Senate Majority Leader Bernard F. Kenny, D-Hudson, the Senate budget committee chairman.

But as legislators continue considering Corzine's budget plan this week, with more deliberations set for Wednesday and Thursday, Republicans aren't optimistic more money can be found, predicting potential tax collection shortfalls will force Democrats to increase taxes.

Legislative budget officials now estimate the state will collect about $625 million less than Corzine has predicted, a forecast that could make it difficult for Democrats to find the extra money they have vowed to find.

"This structural shortfall all but ensures that the long-suffering citizens of this state will be forced to endure yet another round of tax and fee hikes," said Sen. Anthony Bucco, R-Morris.

Senators will spend Wednesday considering proposed spending for the state transportation and environmental protection departments, while Assembly lawmakers will consider funding for Department of Human Services needs Thursday.

Sen. Barbara Buono said requests for more school funding have stood out the most so far as lawmakers consider Corzine's spending $33 billion plan.

"It would behoove this committee to examine the funding levels dedicated to education under Gov. Corzine's budget and to make changes to increase those appropriations wherever feasible," said Buono, D-Middlesex. "The future of our children depends on it."

Corzine has proposed increasing state aid for schools by 3 percent, but many argue that's not enough to help control the nation's highest property taxes.

Sen. Shirley Turner, D-Mercer, wants to see more state aid sent to health care providers and Corzine's plan to increase a tax break for working low-income families approved.