Let’s face it: No one likes the budget that Gov. Jon Corzine has proposed to the state Legislature.
No one likes his proposal to close the parks or his plan to eliminate the Department of Agriculture. No one likes his aid cuts to towns, hospitals or colleges.
But the state is broke. It is facing a massive recurring deficit and something needs to be done.
Is the governor taking the right action? Is this the correct approach to follow?
I don’t know. But pain is the one given in this discussion. Someone is going to have to pay and pay steeply.
The key thing is that the governor has asked that those criticizing his cuts, trying to reverse them, come up with alternatives. Many of the groups have failed to do that, even with the governor saying that more cuts maybe necessary to offset a shortfall in revenue. Many, like the state’s mayors, complain that the cuts will lead them to increase taxes (purposely ignoring the tax cap imposed last year that limits the amount any town can increase municipal tax levies or the impact that school aid increases will have on overall tax bills in many towns).
That’s why I like this story. Many of the state’s progressive interest groups are working to alter the priorities in the governor’s budget, seeking to reverse some of the cuts but offering other cuts and new revenues to replace them.
Contending Gov Jon Corzine’s proposed cuts to the state budget will raise property taxes and hinder public services like health care, higher education, tenant protection, road repair and outdoor recreation, a coalition of 20 citizens’ groups today proposed increases in state income, gas, gambling and liquor taxes and motor vehicle fees to raise approximately $2.28 billion.
“If this budget goes through, we will see longer emergency room waits, higher property taxes and shuttered parks and libraries,” said Eva Bonime, director of the New Jersey Working Families Alliance and coordinator for the new coalition, Better Choices for New Jersey. “This budget makes the wrong choices for working families.”
The coalition is proposing increasing the state income tax on the top 10 percent of wealthy households to raise approximately $500 million. It wants to increases in the gas tax as well as in driver’s license and motor vehicle registration fee to raise $1.4 billion.
The group also wants to close what it sees as corporate tax loopholes and re-evaluate business subsidy programs to raise $300 million. And it wants to see liquor and gambling taxes increased to raise $80 million. Coalition leaders said they have not settled on the specifics of their proposals.
“Better choices means looking at sensible revenue options to fund the services and investments our state depends on,” said Jon Shure, president of New Jersey Policy Perspective. “These are fair, realistic and environmentally sound ways to meet New Jersey’s needs.”
Business groups reacted with criticism — which was to be expected. They are more concerned with maintaining the benefits they get from the state than with the general welfare of the state’s poorest residents.
The question is how the governor and state Legislature will react. No one argues with the need to cut spending. But it is foolish for the state to attempt to close such a massive budget hole by relying only on spending. No one wants to pay more, but I can’t see how we can avoid it.
South Brunswick Post, The Cranbury Press
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Hank Kalet 