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GSCS on $75M in education cuts: these cuts have been presented by Governor Corzine in combination with his 'pension deferral' legislation which has not yet been posted for a vote by the legislature. Yesterday Senate President Codey said the Senate was looking at a March 16 date for a vote on this deferral legislation. The revised deferral bill allows for local districts to decide if they choose to defer payments (up to 50% of the PERS obligation), or a lesser amount of the payment (for bill details, see 2-23 below for S14, noted under the S15 heading on this homepage). One issue needs clarity: what budget lines will the Department of Education debit from individual district budgets to add up to the $75M? Districts need to know this information in order to make an informed decision regarding whether or not to defer all or part of the allowed pension deferral per the legislation. North Jersey.com/Assoc. Press 'Senate allows $812M in cuts' 2-24-09 "The state Senate has approved a bill allowing $812 million in cuts to the current state budget...Overall, tax collections are off by $2.8 billion through the first six months of the fiscal year...All 17 Republicans voted against the bill Monday. They oppose a provision to cut school aid by $75 million in exchange for allowing school districts to defer $75 million in contributions to the state pension system due in April..."
Philadelphia Inquirer 2-24-09, 'Corzine assesses effect of bailout'"...The largest chunks, which the analyses broadly agree on, include about $2 billion for Medicaid; $1.33 billion for the state budget and general education aid; around $250 million for low-income students; about $380 million for special education; $297 million for food stamps; $652 million for highways; and $524 million for other transportation projects..."
Star Ledger - 'Corzine: Stimulus to deliver $1B in budget relief...Governor still sees cuts in spending plan'
Senate allows $812M in cuts Tuesday, February 24, 2009
NorthJersey.com — The Associated Press
The state Senate has approved a bill allowing $812 million in cuts to the current state budget.
The Corzine administration says the additional cuts are needed because the state is not taking in as much sales tax revenue as it had projected and it is required to keep a balanced budget.
Overall, tax collections are off by $2.8 billion through the first six months of the fiscal year.
All 17 Republicans voted against the bill Monday. They oppose a provision to cut school aid by $75 million in exchange for allowing school districts to defer $75 million in contributions to the state pension system due in April.
The bill has not been considered by the Assembly.
Governor Corzine last week proposed $473 million in other cuts. The Legislature has not acted on that proposal.
— The Associated Press
The state Senate has approved a bill allowing $812 million in cuts to the current state budget.
The Corzine administration says the additional cuts are needed because the state is not taking in as much sales tax revenue as it had projected and it is required to keep a balanced budget.
Overall, tax collections are off by $2.8 billion through the first six months of the fiscal year.
All 17 Republicans voted against the bill Monday. They oppose a provision to cut school aid by $75 million in exchange for allowing school districts to defer $75 million in contributions to the state pension system due in April.
The bill has not been considered by the Assembly.
Governor Corzine last week proposed $473 million in other cuts. The Legislature has not acted on that proposal.
________________________________
PHILADELPHIA INQUIRER, 2-24-09, Corzine assesses effect of bailout By Jonathan Tamari, Trenton Bureau
TRENTON - The federal stimulus package could provide New Jersey $1 billion for its next budget, Gov. Corzine said yesterday, but deep spending cuts still will be needed because of rapidly falling revenues.
Corzine said he is expecting around $28.5 billion in state revenues for the budget year that begins July 1. He said the federal support would give the state about $29.5 billion to spend in the new fiscal year - $3.4 billion less than the plan he signed in June.
That would be equal to a 10 percent year-to-year cut unless taxes were raised to add revenue.
Corzine has already worked on trimming the budget, cutting $1.3 billion in the current year as revenues have fallen. He is scheduled to unveil plans for the next fiscal year on March 10.
In addition to the $1 billion in federal aid expected for the new budget, Corzine is counting on $850 million to help balance the current plan, which has been rocked by falling revenues.
The aid for next year's budget is part of a complex package of stimulus support that will arrive in New Jersey in a variety of forms for government agencies, community groups, transportation projects, and individuals, who could see the help in the form of tax cuts, increased unemployment benefits, and additional aid for college.
Estimates of how much money will flow to New Jersey over the next two-plus years remain fluid and depend on what is counted. There is, however, broad agreement among the analyses about how the major portions of the plan will affect New Jersey.
Estimates from the U.S. Senate Democratic Policy Committee and Federal Funds Information for States, which analyzes the federal policy's state-level impact, put the take for New Jersey government, public-works projects and other broad public causes at around $6.2 billion to $6.4 billion over two years. An additional $207 million is expected for the state's unemployment fund, according to the New Jersey Department of Labor, putting the rough total for the government portion in the range of $6.4 billion to $6.6 billion.
The largest chunks, which the analyses broadly agree on, include about $2 billion for Medicaid; $1.33 billion for the state budget and general education aid; around $250 million for low-income students; about $380 million for special education; $297 million for food stamps; $652 million for highways; and $524 million for other transportation projects. (The two estimates differ by slight amounts in some categories.) Not all of the amounts would go directly into the budget.
Corzine, however, has cited much larger figures from the liberal Center for American Progress, which estimates the benefit to New Jersey about $17.5 billion.
Much of the $11 billion difference comes because the center includes $10.2 billion of benefits New Jerseyans will see from tax breaks, expanded unemployment benefits, and increased college aid. Some of the rest of the difference comes because the center estimates larger benefits in some categories than the other analyses.
The center, for example, says New Jersey could see $2.6 billion in Medicaid support, while the other estimates predict $2 billion to $2.2 billion.
A portion of the Medicaid assistance, $15 billion, is expected to go out to states tomorrow.
Corzine has put his chief of staff, Ed McBride, and the state comptroller, Matthew Boxer, in charge of overseeing the funds that arrive in New Jersey. Corzine said President Obama, with whom he met yesterday along with other governors, gave the state leaders two charges:
"Make sure we put money into the economy swiftly, but also make sure that dollars are spent efficiently and openly and transparently to the public."
As Corzine spoke from Washington, U.S. Sen. Frank Lautenberg (D., N.J.) was in Newark promoting the infrastructure benefits of the federal program.
"New Jersey's economy depends on transportation, and this new law provides sorely needed funding for our state to create good-paying jobs, expand our railways, repair our roads, and break ground on major public-works projects," Lautenberg said.
Corzine said he had "no interest" in moving to Washington as commerce secretary in the Obama administration.
Contact staff writer Jonathan Tamari at 609-989-9016 or jtamari@phillynews.com.
Find this article at:
http://www.philly.com/philly/news/new_jersey/20090224_Corzine_assesses_effect_of_bailout.html
Corzine: Stimulus to deliver $1B in budget relief
Governor still sees cuts in spending plan
Tuesday, February 24, 2009
BY CLAIRE HEININGER AND BRIAN T. MURRAY
Star-Ledger Staff
Gov. Jon Corzine said yesterday the federal stimulus package will soften the damage to the budget he will deliver next month by providing more than $1 billion in direct relief.
Corzine said his spending plan for the 2010 fiscal year will be around $29.5 billion, up from the $28.5 billion New Jersey expects to collect in revenues.
That is still a sharp drop from recent New Jersey budgets and would require about $1.5 billion in cuts, Corzine said. He cautioned that he cannot be "precise" about the figures until his March 10 address.
Corzine spoke on a conference call from Washington after a flurry of weekend meetings for the National Governors Association. President Obama addressed the governors about the stimulus plan yesterday morning, urging them "to make sure that we put money into the economy swiftly, but also make sure that dollars are spent ef ficiently, openly and transparently to the public," Corzine said.
In New Jersey, state comptroller Matt Boxer and Corzine chief of staff Ed McBride will monitor how the stimulus money is spent, Cor zine said.
The $787 billion plan is ex pected to pump about $17.5 billion into New Jersey over the next two years -- $7.5 billion in tax relief and $10 billion to be spent on infrastructure improvements, Medicaid costs, unemployment benefits and other areas, Corzine said.
New Jersey's first piece of stimulus help -- about $362 million to help defray Medicaid costs over the next six months -- will be available starting tomorrow as part of an initial $15 billion released to the states, Obama told the governors.
"They're doing their part to get the dollars flowing quickly," Cor zine said.
Jobs will also arrive by spring, officials said yesterday. Sen. Frank Lautenberg (D-N.J.) said the nearly $1.2 billion New Jersey will receive for transportation projects will produce 100,000 new jobs, some begin ning in the next few months. That includes repairs and expansion of state highways, bridges, rail lines and seaports, as well as transit capital projects such as rail and bus stations.
Dismissing critics who contend the jobs created will only be temporary, Lautenberg said additional, permanent jobs will be created when corporations and other businesses grow along the improved transportation routes. He also said that 44,000 permanent jobs will be created in New Jersey and New York when a rail tunnel project is completed under the Hudson River.
"Let's start digging. Let's get this tunnel under way," he said, adding that New Jersey is very close to getting the federal money needed to start moving the $8.7 billion effort for the new rail line to Manhattan.
The federal stimulus package authorizes up to $1.5 billion for what are called "new starts" projects nationwide, and New Jersey needs $3 billion in federal funds to proceed with the tunnel. But Lau tenberg said the rail tunnel is one of only a few in the nation where the planning is far enough ahead to merit the funding.
"There are all sorts of assur ances we've received," he said. "I think we can get this thing going by summer."
While it is not as large as Cor zine initially hoped, the stimulus package allows New Jersey to avoid even more "severe" cuts in state services, he said.
The governor has already proposed a series of emergency cuts and a two-day furlough of state workers to balance the current budget, which is in effect through June 30. That budget, which initially passed at $32.9 billion, is now estimated at $31.6 billion after a sharp decline in tax revenues forced the midyear cuts.
A handful of those cuts -- including $75 million in aid to public schools -- were passed by the state Senate yesterday, 21-17.
Despite the economic pain, Cor zine said he does not want to leave New Jersey to become Obama's Secretary of Commerce, a still-va cant cabinet post after two earlier nominees stepped down.
"I have no interest in the commerce secretary position," Corzine said. "I like what I'm doing."
Claire Heininger may be reached at cheininger@starledger.com or (609) 989-0273.
