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Asks legislators not to approve spending bills in lameduck
BY TOM HESTER SR.
NEWJERSEYNEWSROOM.COM
With October tax revenue collection coming in below target, Gov. Jon Corzine Thursday ordered his department heads to propose $400 million in budget-cutting options be Dec. 1. in an effort to keep the 2009-10 state budget balanced during his final two months in office.
Corzine also called for fiscal constraint during the lame duck legislative session and asked lawmakers not pass any legislation that would result in added spending.
In addition, the governor directed the state treasurer to look at spending in areas that cuts across departments for added savings.
In his first major action since losing re-election Tuesday night, Corzine said "My administration will continue to live up to our responsibility to maintain a fiscally balanced budget during the next two months. These cuts will be tough but necessary choices that need to be addressed now. Ignoring these issues over the next two months will not make them go away and will only hurt the people of New Jersey. I will not allow politics to stand in the way of doing what is right."Corzine leaves office Jan. 19 and has pledged to Republican Governor-elect Chris Christie that he will provide a smooth Transition. Christie is expected to face an $8 billion budget deficit as he confronts the 2010-11 budget in the spring. He campaigned that he intends to cut deeply into state spending.
Corzine said he has directed his cabinet to provide $400 million in savings options to the treasurer because October revenue collections are coming in below targets and may continue to erode in the months ahead as the national economic recession places pressure on spending for critical safety net programs like Medicaid.
Treasury officials could not immediately provide details on how much tax revenue expected in October has been collected.
The governor also directed his cabinet to maintain a hiring freeze and strict restrictions on travel. He also ordered the continuation of the review of all purchases and contracts by the treasurer to limit spending to only those transactions that are absolutely necessary.
Today's actions build upon actions already taken that resulted in a budget that was $4 billion less than the previous year and mirror the types of steps taken during 2008-09 that resulted in over $2 billion in mid-year reductions.
Reacting to Corzine call for the Legislature not to approve spending bills, Assembly Budget Chairman Lou Greenwald (D-Camden) said, "I am heartened by Gov. Corzine's move to find $400 million in budget savings and by the insistence by the governor and (Assembly) Speaker (Joseph) Roberts that the Legislature not pass bills during the upcoming post-election session that would result in added spending. Post-election sessions are a time to tackle unfinished business, and under Speaker Roberts these sessions have been very moderate and measured."
