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BY TOM HESTER SR.
NEWJERSEYNEWSROOM.COM
Gov. Chris Christie's proposed $29.3 billion 2010-11 state budget has drawn criticism from labor chiefs and environmentalists and praise from business leaders.
Charles Wowkanech, New Jersey AFL-CIO president, said Thursday Christie is shifting the tax burden away from the wealthy and business and onto middle- and low-income residents.
"The clearest indication of this is letting the surcharge on the wealthiest New Jersey residents expire, while scaling back the earned income tax credit for the working poor,'' Wowkanech said. "Reducing unemployment benefits for those most adversely impacted by the economic downturn while simultaneously relaxing the level of contributions to the fund by corporations and business also illustrates this; as does his actions to again fail to contribute any money to the pension system.''
Christie is letting a surcharge on New Jerseyans who earn over $400,000 annually expire while reducing the earned income tax credit on moderate- and low-income workers. He is also skipping a $3 billion state contributions to the pension funds for public employees.
"By not funding the pension system at the state level, the obligation is being passed down to local governments to pay for the state share,'' Wowkanech said. "This is a tax on towns throughout New Jersey. Short changing the pension systems does not save money, it simply defers costs. Blaming government for New Jersey's fiscal problems does not recognize that New Jersey, like every other state, is in the midst of the worst global economic downturn since the great depression.''Wowkanech called Christie's proposal to allow local governments to opt-out of civil service is an outrage.
"For decades, the civil service system has promoted equal opportunity for workers who seek public employment.,'' he said. "It also ensures that government jobs are not prone to patronage and politics, which often leads to abuse and squanders tax dollars. The governor's claim that we need to make "management of our towns better and more professional" by eliminating civil service is a personal insult to every public employee."
Philip Kirschner, New Jersey Business & Industry Association president, said Christie's actions are the way to get New Jersey's economy back on track.
"For many years, New Jersey has tried to tax its way out of budget deficits, and it has tried to borrow its way out of budget deficits,'' Kirschner said. "This has not worked. Budget deficits have continued to grow, and New Jersey has continued to fall deeper into debt. It is time to change course."
Kirschner said Christie's proposed budget will create a future where each new fiscal year is not a crisis, where state spending is sustainable, and tax revenues are predictable and stable.
"That's in the best interest of all New Jerseyans,'' he said. "And as the governor said, a reduction in state spending will send a positive message to the business community that New Jersey is serious about changing its business climate. That will help attract new companies to locate here and create new jobs. That's in everyone's best interest too."
Jeff Tittel, New Jersey Sierra Club director, said Christie's budget is anti-environmental and cuts important programs designed to reduce greenhouse gases, protect the environment, and create green jobs.
"Governor Christie's budget, just like his executive orders, will dismantle many key environmental programs in New Jersey,'' Tittel said. "Not only will his budget hurt the environment, it will cost us green jobs."
Christie has announced that he will cut money for the Regional Greenhouse Gas Initiative (RGGI) and $68 million in programs funded by RGGI will be eliminated.
RGGI, a compact with multiple states in the Northeast, was established to create programs that reduce the greenhouse gas footprint. Programs help pay for clean energy programs that reduce carbon and create jobs. Tittel said that by cutting the fund, the governor is hurting the environment and preventing green jobs.
"The budget slashes the Clean Energy Fund by a total of $52 million – $42 million in direct cuts and $10 million in diversions,'' Tittel said. "These cuts will significantly reduce the amount of money available to reimburse residents for solar installations and high efficiency appliances, like furnaces and air conditioners. These cuts to the Clean Energy Fund are on top of the $158 robbed from the fund in fiscal year FY 2010. The Clean Energy Fund is dedicated by the Legislature, so the Governor's cuts to the fund are a one-shot gimmick.''
Tittel noted Christie is cutting the Department of Environmental Protection budget by $15 million to $200 million. He said in two years, DEP funding has been slashed by about a third – from $277 million down to $200 million. He said at least $40 million from the DEP budget that comes from fees, fines, and grants will be diverted to the state's general fund.
"DEP is at its lowest level of funding in more than 25 years," Tittel said. "There won't be enough people at DEP to issue the permits required to protect public health and the environment and ensure that our economy gets going."
