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BY TOM HESTER SR.
NEWJERSEYNEWSROOM.COM
UPDATED
Eight months before they usually would start pointing fingers, Democratic and Republican legislators are blaming each other for the $10.5 billion 2011-12 state budget deficit they and Gov. Chris Christie will have to confront next March.
The verbal rock tossing began soon after David Rosen, the budget officer for the non-partisan state Office of Legislative Services Thursday confirmed for legislators that they can expect the deficit.
At one point, Rosen said that one way to close the deficit would be by doubling state income tax rates, an idea both Democrats and Republicans were quick to shrug off.
Both Democrats and Republicans expressed opposition to raising taxes to reduce the deficit.
Legislators and Christie had to confront a $10.5 billion deficit as they prepared the current 2010-11 budget. That deficit led
"Gov. Christie may be content with his victory laps and confabs with the Queen of England, but this budget deficit clearly shows the impact of his failure to meet obligations such as funding pensions, property tax relief and school aid,'' Assemblyman Lou D. Greenwald (D-Camden), the committeeman chairman, said. "Gov. Christie can try to solve problems by avoiding obligations and pretending they don't exist, but that's like a family saying, 'We're going to tighten our belts and we're going to live within our means, but we're not paying our bills.' A family wouldn't do that, and neither should the state."
Michael Drewniak, Christie's press secretary, described the Budget Committee hearing as "Greenwald's summer slide show. He said the Democrats, instead, should "shine a light on Democratic budget crisis, deficits (and) failed leadership.''
Drewniak said Christie "closed a $13 billion in budget deficits without tax Increases and saved Taxpayers billions in (his) first six months in office.‘'
The deficits included shortfalls in the 2009-10 budget.
Assemblyman Declan O'Scanlon (R-Monmouth), a committee member, charged the Democrats are spending time trying to score political points and should begin working on legislation that would reduce government spending."People have been very clear — they want us to work together to fix New Jersey's structural problems that have been created over the last decade when Democrats relied on large-scale tax increases to support out-of-control spending," O'Scanlon said. "I was happy to hear they are willing to work with us, but meetings like today's should be about getting things done, not playing political games with speculative numbers instead of getting to work for the people of New Jersey."
O'Scanlon said Republican legislators and Christie
support what he termed a comprehensive reform agenda that would reduce mandates on local government, lower the state's pension obligations and lower taxes for the most-heavily taxed people in the country.
"Governor Christie is advancing a thorough and comprehensive agenda to reform New Jersey, but taxpayers won't realize any savings until Democratic legislators stop stalling," O'Scanlon said. "Today, they dismissed his property tax toolkit because they say it won't solve all the state's problems. They miss the point. No one aspect of the Governor's plan is a cure-all, but taken collectively they will fix the problems left behind by Democratic administrations."
To balance the current budget, Christie eliminated property tax rebates slashed state aid to public schools and cities and towns.
"Democrats and Republicans worked hard last year to pass a series of pension reform bills, but all that progress was wiped out when Governor Christie failed to meet his obligation to fund the state's pension system,'' Assembly Appropriations Chairman Nellie Pou (D-Passaic) said. "As we just heard, that failure to do so has only worsened the problem, increasing the amount needed next fiscal year to fully fund our pension system by about $200 million. ‘'
"It comes as no surprise that Democratic administrations have left New Jersey with a big gap between its revenue and what its government spends," Assemblyman Joe Malone (R-Burlington), the senior Republican on the committee, said. "It's a repetitive problem that can be solved by either cutting the state's spending obligations or raising taxes. I'm glad that Democrats have endorsed what the people want — a smaller government that takes less of their money."
Referring to the idea of doubling income tax rates, Malone said, "That's absurd and I'm glad my Democratic colleagues have finally realized that. Now we have to get beyond playing these tired political games with phantom numbers and get to work on legislation that will actually reduce government spending and continue Governor Christie's effort to address our state's long-standing fiscal problems."
The New Jersey Chamber of Commerce welcomed the consensus not to raise taxes.
"In order to grow jobs and improve New Jersey's economic situation, Trenton needs to refrain from ‘tax and spend' and instead continue to make the necessary cuts to get our state's fiscal house in order," Michael Egenton, the Chamber's senior vice president, said.
"The New Jersey Chamber of Commerce recognizes that balancing the state budget is extremely difficult," Egenton added. "That being said, New Jersey employers continue to struggle in this tough economy. The state Chamber will work with our policymakers to make sure that the next state budget does not overly burden the business community."
