The governor wants his administration to find $3 billion in spending cuts before heading into next year’s budget discussions — $3 billion cuts in a budget of about $32 billion, or nearly 10 percent.
That’s a deep slashing on the spending side that will affect services. The questions are what services and are we willing to settle for service cuts?
The suspicion here is that the announcement is nothing more than a precursor for a more fevered fight on his part to get his asset monetization plan through — sell or lease state assets, take the proceeds and pay down the debt. That maybe where the governor is headed, but it would be foolish on our part to follow. Monetization is just another budget gimmick in a state with a history of budget gimmicks.
But we have to be honest, as well — something rare among state and local government officials — that state finances cannot be addressed in one budget with cuts, tax hikes or gimmicks and that the financial crisis in New Jersey is about more than just the state. Local governments are sinking under the weight of property tax increases that have locals angry and many moving out.
Real reform is what is needed: consolidation of municipalities and school boards, the elimination of small taxing districts (fire, garbage), strict rules governing the borrowing of money by the state, a new funding approach for schools, a complete reconfiguration of state taxes (income taxes, anyone?).
The Legislature, of course, does not have the stomach for any of this. So it will be up to the citizenry to identify what is important — what services they believe are needed, how municipalities should be structured, etc.
It is time for a constitutional convention. I just don’t see any other way.
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Hank Kalet 