Will Governor Christie stay true to his no tax hike promise?
Yes
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No
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Posted: Thursday, 08 April 2010 4:50AM
First Budget Hearing Features Ramped Up Rhetoric
Kevin McArdle Reporting
Click below for a complete audio wrap-up from Statehouse Coorespondent Kevin McArdle
Budget hearings at the State House can typically get a little contentious as the process heats up, but lawmakers wasted little time in throwing verbal bombs at yesterday's sessions of the Assembly Budget Committee. In his opening statement before taking testimony from State Treasurer Andrew Eristoff, committee chairman Lou Greenwald said, " What we have in front of us is a tax-laden budget plan that targets the middle-class, senior citizens and the poor. Just about everything vital to working-class New Jerseyans and senior citizens would be taxed, slashed or eliminated by Governor (Chris) Christie."
Greenwald's fellow democrats on the panel followed the chairman's lead. Assemblyman John Burzichelli said, "The governor has told us this would be a year of pain and that it had to be a shared sacrifice, but people earning more than $400,000 per year get an income tax cut as senior citizens get a property tax increase of at least $1,200 because their 2010 rebate is being eliminated and besides losing vital property tax relief, senior citizens under Gov. Christie's plan would also pay significantly more for prescription drugs that are crucial to their health and quality of life. I don't think anyone could legitimately argue that equals shared sacrifice."
"Gov. Christie wants to tax hospitals, working poor families, businesses and senior citizens while eliminating property tax relief for the middle-class and seniors and slashing school aid, all while digging in his heels to protect the wealthy," said Assemblywoman Nellie Pou. "Just because the governor says this budget is built on shared sacrifices doesn't make it so."
Pou grilled Eristoff about how Christie's budget would lead to higher taxes. The Treasurer was adamant saying, "I'm afraid we're going to have agree to disagree because they're not tax increases…..The Governor has not proposed any broad-based tax increases and he won't sign a budget that includes them."
Democrats insist Christie is breaking a pledge in his first budget to lessen the burden on overtaxed New Jerseyans. Republicans, meanwhile, say the new governor is taking necessary and overdue steps to cure New Jersey's reckless spending habit.
Democrats continue to criticize the proposal that they say balances the budget on the backs of those who can least afford it. They point to billions of dollars in program cuts and fee hikes, including the suspension of property tax rebates for this year that would cost older residents an average of $1,200, changes in the earned income tax credit that would cost the working poor $283 and increases in hospital and ambulatory care taxes, among many others.
The Governor's budget proposal is responsible says Joe Malone, the ranking Republican on the Assembly Budget Committee. He adds, ""As I have said often over the last six months, these next two years are not about building political careers, and in some cases the things we must do may end careers. It is my sincere hope that we all show a strong conviction of purpose and the ability to forge a strong consensus that will gain us respect for the decisions we make that will make a positive change in the lives of the residents of this State."
Christie's proposed budget calls for layoffs of 1,300 employees, some of whom will lose their jobs to privatization. According to budget details, the layoffs would include 530 jobs that result from shutting a South Jersey psychiatric hospital and 130 positions from the privatization of New Jersey Network. None of the layoffs would occur before January, when the no-layoff agreement former Gov. Jon Corzine made with labor unions expires.
Democratic assemblyman Al Coutinho asked Eristoff if he factored in how the Governor's cuts to towns and schools might impact jobs locally. Eristoff said, "Did we do an analysis trying to reach through to see what the impact would be at the local level? The honest answer is no………We don't expect that localities and school districts will deal with these challenges solely through employee actions and layoffs."
Eristoff says it is expected that towns and schools will find ways to manage their spending more effectively.
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