Now we know why many people don't like surprises. In his first State House press conference as New Jersey's 55th Governor, Chris Christie dripped with sarcasm as he told the press corps about the "parting gift" left for him by former Governor Jon Corzine.
Christie says his top transition team members, "had continually asked (Corzine's) Treasurer (David) Rousseau for revenue projections through the end of fiscal year 2010. They would never give them to us. We asked week after week after week for revenue projections through June 30, 2010. Initially we were politely put off and then ultimately we were just ignored and we would not be given that information."
The new Governor says he found out at 2pm Tuesday afternoon why the Corzine Administration wouldn't give the information. He explains, "Revenue is projected to be $1.2 billion down year-to-date, to June 30. We're talking now about an additional billion dollar net gap that we have to close for Fiscal Year 2010."
The shortfall is the result of lower than expected tax collections and added spending. Christie says he has no question now why the former Treasurer didn't want to disclose taxation information. He says, "It would not have fit the scenario of the Corzine Administration leaving office…….They didn't tell you about this, but don't feel badly, they didn't tell us either."
"It was only when we took control of government that we found out that in their possession they refused to give us the projections for what June 30 was going to look like," explains Christie. "We're talking about now an additional billion dollar hole that we are going to have to fix."
Christie says the possibility of a larger budget deficit for this year is why he was so adamant about the additional spending that Corzine and the legislature pushed through in the final days of the lame duck session.
"This is going to mean some tough realities for everybody, but we are going to fix these problems and we're going to fix them responsibly and without tax increases," insists Christie.
Before Christie took office, the state's Local Finance Board, which advises on the financial condition of municipalities, approved $121 million in special aid to five so-called distressed cities; Camden, Paterson, Jersey City, Union City and Bridgeton. Christie was anything but thrilled with the move.
The funding is called special, extraordinary municipal aid, but Christie said, "Aid that is given every year is not special or extraordinary……..This aid has been coming every year and people budget anticipating the aid."
Also before he was sworn in, Christie threatened to block the aid. He explained, "I'm not going to foreclose any options of what I may do with the distribution of that aid come the 19th of January…….I'm not going to make a promise either way. We're going to take a look at it on the 19th and take a look at each particular city's circumstance……All options are on the table, but we will do it on a city-by-city basis. We will not just do it across the board."
As it turns out, there's nothing Christie can do. Yesterday, he said, "We instructed our cabinet secretary (Tuesday) immediately after I took the oath (as Governor) to look into the supplemental municipal aid that was being given. You will not be shocked to know that that aid was wire transferred out before I took the oath of office so any attempt by us to stop the distribution of that aid and to save $121 million for the state's taxpayers was thwarted by the Corzine Administration."
"They wire transferred the money out so that on Tuesday morning the money went out prior to the time we could do anything to stop it," says Christie. "He (Corzine) had time to sign medical marijuana (legislation). He had time to sign prevailing wage bills. He had time to sign all of the parting gifts to his political patrons but he didn't have time to sign a bill that would save money for the taxpayers of New Jersey."
That last piece of legislation to which Christie refereed concerns the $800 million in budget savings Corzine proposed. $260 million of the savings would have to come from forcing school districts to use their surplus funds rather than receive more state aid. The move required the passage of enabling legislation. That didn't get passed. Christie says, "If there is a lasting legacy of the Corzine transition that's the headline of it: Time to take care of his pals. No time to take care of the taxpayers of New Jersey."
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