Americans for Prosperity New Jersey

Americans for Prosperity Says Corzine’s Election-Year Budget is a “Taxpayer Nightmare�
Budget Needs to Be Pared With “Meat Axe, Not a Butter Knife�

Steve Lonegan, executive director of Americans for Prosperity’s New Jersey chapter, today blasted Governor Jon Corzine’s election-year budget as “built on Enron-style accounting -- continuing the growth of big government while postponing a massive $2.5 billion deficit until after the election.�Americans for Prosperity Says Corzine’s Election-Year Budget is a “Taxpayer Nightmare�
Budget Needs to Be Pared With “Meat Axe, Not a Butter Knife�

Steve Lonegan, executive director of Americans for Prosperity’s New Jersey chapter, today blasted Governor Jon Corzine’s election-year budget as “built on Enron-style accounting -- continuing the growth of big government while postponing a massive $2.5 billion deficit until after the election.�

Lonegan noted that during his speech, the Governor casually referred to next year’s budget, after the election, which he said is “$2.5 billion in the hole, give or take a few dollars.�

“There will be two solutions to this planned financial disaster - massive tax increases or the ‘monetization’ of state assets,� Lonegan said. “This proposed spending plan continues the runaway spending and expansion that has plagued the state for more than a decade, and has brought New Jersey’s overall tax burden to nearly the nation’s highest.�

“The Corzine budget calls for another reckless expansion of state government that takes a head-in-the-sand approach to the state’s serious fiscal problems. The governor’s budget would increase spending 7.2 percent to $33.3 billion. That’s a 15.4 percent increase over just two years ago. State spending has vastly outstripped the growth of the state’s population over the past decade. If the state had limited spending to a rate of inflation plus population growth starting in 1997, 2008 spending would be about $24 billion, a stunning $9 billion less than the misleadingly described ‘bare bones’ Corzine budget,� Lonegan continued.

“Governor Corzine’s assertion that employee salaries and benefits are ‘fixed costs’ outside of budgetary control ignores that over the past decade state full time employees have jumped 14.7 percent to more 80,000. This growth is more than twice the growth in state population.�

“The Governor bemoaned higher pension and health care costs, but his recent contract with state workers does virtually nothing to improve this situation. The tiny employee contribution of 1.5 percent for health care premiums and an increase in the retirement age for teachers from 55 to 60 for new hires only�may actually worsen the situation because these actions maintain unsustainable benefits will make genuine reforms, such as transitioning to defined-contribution plans more difficult.�

“In short, the Governor’s budget and contract sellout to government workers show that Governor Corzine represents only those New Jerseyans who collect money from the government and not the overwhelming majority of us who write checks to the government.�

“The governor is also off the mark with his claim that new revenue sources are needed to pay for school construction. This is an indication that new gimmicks and taxes are on the agenda for right after the election to get more money for this corrupt state government boondoggle.

“It is profoundly misleading to characterize the budget as a “property tax relief budget� and claim that 50 cents of every dollar are dedicated to tax relief when New Jersey taxpayers will not see lower mill levies. Even the rebate checks they do receive are not a tax cut but a tax shift, because they must be paid for with gross income tax revenues.�

“The proposed Earned Income Credit expansion -- removing all those earning under $30,000 from the tax rolls -- is nothing more than a warmed-over Election Year welfare handout.

Americans for Prosperity Says Corzine’s Election-Year Budget is a “Taxpayer Nightmare�
Budget Needs to Be Pared With “Meat Axe, Not a Butter Knife�

Steve Lonegan, executive director of Americans for Prosperity’s New Jersey chapter, today blasted Governor Jon Corzine’s election-year budget as “built on Enron-style accounting -- continuing the growth of big government while postponing a massive $2.5 billion deficit until after the election.�

Lonegan noted that during his speech, the Governor casually referred to next year’s budget, after the election, which he said is “$2.5 billion in the hole, give or take a few dollars.�

“There will be two solutions to this planned financial disaster - massive tax increases or the ‘monetization’ of state assets,� Lonegan said. “This proposed spending plan continues the runaway spending and expansion that has plagued the state for more than a decade, and has brought New Jersey’s overall tax burden to nearly the nation’s highest.�

“The Corzine budget calls for another reckless expansion of state government that takes a head-in-the-sand approach to the state’s serious fiscal problems. The governor’s budget would increase spending 7.2 percent to $33.3 billion. That’s a 15.4 percent increase over just two years ago. State spending has vastly outstripped the growth of the state’s population over the past decade. If the state had limited spending to a rate of inflation plus population growth starting in 1997, 2008 spending would be about $24 billion, a stunning $9 billion less than the misleadingly described ‘bare bones’ Corzine budget,� Lonegan continued.

“Governor Corzine’s assertion that employee salaries and benefits are ‘fixed costs’ outside of budgetary control ignores that over the past decade state full time employees have jumped 14.7 percent to more 80,000. This growth is more than twice the growth in state population.�

“The Governor bemoaned higher pension and health care costs, but his recent contract with state workers does virtually nothing to improve this situation. The tiny employee contribution of 1.5 percent for health care premiums and an increase in the retirement age for teachers from 55 to 60 for new hires only�may actually worsen the situation because these actions maintain unsustainable benefits will make genuine reforms, such as transitioning to defined-contribution plans more difficult.�

“In short, the Governor’s budget and contract sellout to government workers show that Governor Corzine represents only those New Jerseyans who collect money from the government and not the overwhelming majority of us who write checks to the government.�

“The governor is also off the mark with his claim that new revenue sources are needed to pay for school construction. This is an indication that new gimmicks and taxes are on the agenda for right after the election to get more money for this corrupt state government boondoggle.

“It is profoundly misleading to characterize the budget as a “property tax relief budget� and claim that 50 cents of every dollar are dedicated to tax relief when New Jersey taxpayers will not see lower mill levies. Even the rebate checks they do receive are not a tax cut but a tax shift, because they must be paid for with gross income tax revenues.�

“The proposed Earned Income Credit expansion -- removing all those earning under $30,000 from the tax rolls -- is nothing more than a warmed-over Election Year welfare handout.

“The entire budget is a election year scam designed to hide the Enron like financial condition our state is in today,� Lonegan added. “A genuinely pro-taxpayer budget would cut state payrolls, fundamentally reform state health and pension obligations, and permanently lower taxes, instead of just shifting them around. This budget, which increases spending at more than twice inflation, needs to be pared with a meat axe, not a butter knife.�

Americans for Prosperity (AFP) is the nation’s premier grassroots organization committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and scope of government is the best safeguard to ensuring individual productivity and prosperity for all Americans. AFP educates and engages citizens in support of restraining state and federal government growth, and returning government to its constitutional limits. For more information, visit www.americansforprosperity.org

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Americans for Prosperity (AFP) is the nation’s premier grassroots organization committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and scope of government is the best safeguard to ensuring individual productivity and prosperity for all Americans. AFP educates and engages citizens in support of restraining state and federal government growth, and returning government to its constitutional limits. For more information, visit www.americansforprosperity.org

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