Corzine signs budget

TRENTON - Governor Jon S. Corzine today signed an unprecedented, fiscally responsible $32.9 billion state budget for FY 2009 that prioritizes the core functions of government – education, public safety and protecting the most vulnerable among us – while also providing substantial property tax relief to homeowners.
“This budget takes us through a turning point and confirms our commitment to a common sense principle of finance, often ignored, that we should spend no more than we take in,” Corzine said. “Make no mistake, the spending cuts are painful and bring no pleasure of applause. They didn’t in February and they don’t today. The cuts do, however, make clear that fiscal and tax stability for New Jersey’s citizens is possible.”
The budget represents a $2.9 billion reduction in spending; reduces the size of government by 3,000 workers through early retirement and attrition; cuts the operating budgets of every state department by an average of five percent and eliminates altogether the Department of Personnel and the Commerce Commission. This budget pays down the state debt by $650 million and uses $261 million in unexpected surplus revenues to replenish the Unemployment Insurance fund, thereby avoiding a $350 million increase in business taxes.
At the same time, the budget provides nearly $600 million more for public education through a new, fairer funding formula that is based on students, not zip codes. It also maintains the property tax rebate program, dedicating $1.5 billion to direct tax relief for property owners with incomes up to $150,000 a year.
Ultimately, the budget cuts $600 million from last year’s spending plan, only the sixth time since 1951 the state budget has spent fewer actual dollars than in the previous year. It is far and away the largest actual dollar, year-to-year reduction in state history.
In addition to the budget, Governor Corzine today issued Executive Order No. 103, which requires that in all future budgets, recurring expenses by the state must match recurring revenues.
“This hard fought for budget confirms the Legislature’s and my commitment to resetting New Jersey’s fiscal affairs. Let me be clear, the debate on this budget was challenging and we would not be taking the path we are without the cooperation, leadership and the discipline of the individuals standing with me,” he said.
Senate President Codey (D-Essex) said,“Not only have we significantly curbed state spending, but we’ve also dramatically changed the way the budget is crafted. Most importantly, we were able to prioritize our limited resources to produce what I believe is a very compassionate budget that protects the core responsibilities of government - educating our children, caring for the most vulnerable, maintaining vital public safety, and providing property tax relief for those who need it most. I’d like to thank Governor Corzine, Speaker Roberts and Senate Budget Chair Barbara Buono for their conviction and leadership.”
In addition to the budget appropriations bill (S2009/A2800), Governor Corzine also signed into law several other component pieces of legislation, including:
S1979/A2803 – Abolishes Department of Personnel
S1980/A2808 – Abolishes NJ Commerce Commission.
S2043/A2806 – Allows up to $9 million from "Shore Protection Fund" to be used to help defray State park and forest operation and maintenance costs
S2045/A2807 – Delays phase-out schedule of transitional energy facility assessment unit rate surcharges.
A-2809/S-1978 “Health Care Stabilization Fund Act”; creates fund in DHSS to provide grants to health care facilities to maintain access to essential health care services
Executive Order No. 103 – Requires recurring revenues match recurring expenses in all future budgets.
Formally introduced at a joint session of the Senate and General Assembly on March 3, the budget was passed by the Legislature and sent to the Governor for his signature on June 23, a week before the statutory deadline for a balanced budget.
Budget Highlights, detailed charts on revenues and expenditures and other related documents can be found at www.state.nj.us/Treasury.