NJ budget deal reached, tax raise sticks

[Regis Philbin]

Suckers... :]

http://www.newsday.com/news/nationworld/wire/sns-ap-new-jersey-budget,0,7260047.story?coll=sns-ap-nationworld-headlines

New Jersey Budget Deal Reached

By TOM HESTER JR.
Associated Press Writer

July 6, 2006, 8:39 PM EDT


TRENTON, N.J. -- New Jersey's governor and lawmakers reached a deal Thursday on a new state budget, six days into a state government shutdown that shuttered casinos and threw more than 80,000 people out of work.

Gov. Jon S. Corzine said the shutdown will end in the next 24 to 36 hours, and budget bills first must pass both the Senate and Assembly.

The governor cautioned that the budget accord was not cause for celebration, because too many residents' lives were disrupted.

"We have much more to do in the coming months and years to fix our state's public finances," he said.

The deal will increase the state sales tax from 6 percent to 7 percent and use half the $1.1 billion that it will raise to help lower property taxes, which are among the highest in the nation. It allows the possibility that, in future years, the entire increase will go to property tax relief.

"I honestly think that in the end with the agreement that we have reached, our state and more importantly our citizens are all emerging as winners," said Senate President Richard J. Codey.

Democrats who control the state Assembly had opposed the sales tax increase, which would cost the average New Jersey family an estimated $275 per year.

"This is a very, very fair resolution: good for the state, good for the taxpayers," said Assembly Speaker Joseph Roberts Jr., who had been the main opponent of the sales tax hike.

[pinky]

As a resident of New Jersey, I think this is actually a good thing. For far too many years, the state has been mismanaging its money, and refusing to properly fund its programs, because doing so would be political suicide (the Assembly majority leader actually said this publicly :rolleyes: ).

The last governor who tried to balance the budget was voted out after one term, defeated by Christie Whitman, who used more smoke and mirrors to make the figures look good than anyone else I've ever seen. At least Corzine is accepting the idea that you actually PAY for what you use.

[Regis Philbin]

So you give someone who can't manage their money more money? That makes sense...

[pinky]

Corzine hasn't been in office a year yet. This is his first budget.

[Venisenvy]

This has not made sense to me whatsoever, when taxes were raised on the puerto rican people it made no sense either. So we have a government that has proven to not be able to manage the peoples money properly and the solution is to give them more money. This is just plane insane.

[pinky]

Normally, I wold agree. However, when a new governor takes office and is confronted with the results of years of mismanagement of public funds, it's his or her DUTY to put the fiscal house in order, rather than to continue mortgaging the future. And while I believe that there is waste inherent in the current state government, much of the problem in New Jersey lies in the fact that far too many state legislators also hold other public positions, and they are not making good spending decisions, because that might affect their other jobs (elected or otherwise). Fixing that elemental problem will require legislation to prohibit the practice, and Corzine doesn't have time for that.

Trust me, in this case, there really is no viable answer other than a tax increase.

[young again]

I hate to say this, but living in NJ I agree that taxes probably had to go up. I would have liked to see more cuts in spending too. What I don't like is using the sales tax increase to lower property taxes. I would rather see a better way to fund schools so that property taxes don't have to be so high in the first place, rather than a new relief program along the lines of the homestead rebate. Raising sales tax so you can send checks to homeowners to offset school tax just seems wasteful and silly.

[db44]

A state that has revenue from the likes of Atlantic City that still is in financial disarray needs an overhaul.

Speaking of which, that seemed to be what made this a national story... What does that say about our state of mind?

[pinky]

I hate to say this, but living in NJ I agree that taxes probably had to go up. I would have liked to see more cuts in spending too. What I don't like is using the sales tax increase to lower property taxes. I would rather see a better way to fund schools so that property taxes don't have to be so high in the first place, rather than a new relief program along the lines of the homestead rebate. Raising sales tax so you can send checks to homeowners to offset school tax just seems wasteful and silly.
I agree 100%. But fixing the school funding question will take time, which we don't have. First, get the budget undercontrol, then attack the causes of the problem. Otherwise, the debt becomes even greater and harder to manage.

[pinky]

A state that has revenue from the likes of Atlantic City that still is in financial disarray needs an overhaul.

Speaking of which, that seemed to be what made this a national story... What does that say about our state of mind?
Dave, the New Jersey legislature has been botching all kinds of issues for at least 30 years, when they put in their so-called "no fault" auto insurance. They've tinkered with that until we have the highest premiums in the country, and many insurance companies left the state anyway.

Real reform is needed on so many issues that it's going to take YEARS of electing principled people to both the governership and the legislature to fix things correctly. And, in New Jersey, that ain't gonna happen (Fuggeddaboutit!)

[Venisenvy]

To get the budget balanced it should be made with cuts, not with raising taxes. At one point Connecticut was facing a deficit and we needed to fix it, we did not raise taxes on the citizens we made cuts. Some were tough, closing certain DMV, and Social service offices, we offered early retirement to state workers and did many more things. Guess what we were able to close the shortfall and now we have a surplus. The problem is once you have a surplus people want you to spend it, but we did not do that either, we are keeping it in a rainy day fund for when we do really need it. See there is always something government can do for you, I can probably think of a billion things that we can use more money for but it does not mean that it should. Government should be small, satisfy the needs of the people but it should not do everything. When there is a surplus we should not expand governmentalthough obviously there will be new programs that need to be created and we should deal with them when they come. See my philosophy is that when something needs money it will show itself and we should not go around trying to see what we can spend money on. When there is a shortfall we should also not increase government, by raising taxes the government of NJ has now even more money to waste and mismanage. This should be an outrage, there has been no fundamental change that goes along with this. And the chances of something being done about it are zip. See when there is a crisis, government will try to find a solution, if the solution demands a fundamental change then maybe it can happen. But when you resolve the shortfall and make no gurantees for the future then there will be no change. What caused this problem will not be fixed at least not until the next shortfall. This is an opportunity that was wasted and in the end just screws the people of new jersey more.

[pinky]

According to everything I've read, the budget just passed includes over $2 billion in cuts.

[Venisenvy]

Im sure there are still many things that can be cut from the budget, some cuts are not easy but it does not justify raising a tax on spending. This is one of those taxes that affects everyone even the poor, this is not the type of tax you want to raise if you have to raise taxes. How about figuring out a tax that would only affect the wealthy. Or a tax that would at the very least not affect the poor. I know that sounds very unlike a republican but while I hate taxes if there is one tax i hate the most is a tax on spending and if taxes must be raised there are others to look for.

[WannaBreatheYou]

I would love having just 7% sales tax. I don't think I've had that in my state at all in my entire life.