FY 2011 Budget Poised for Final Vote Monday

NJ 101.5
Kevin McArdle
June 25, 2010

Yesterday, one day after the State Senate Budget Committee did so, the Assembly Budget Committee advanced Governor Chris Christie's $29.4 billion budget proposal. The committee voted 5-4 yesterday to send the bare-bones budget to the full Assembly for a floor vote Monday.

The Assembly budget panel will reconvene today to consider budget-related bills left undone. Among them is a proposal to cap property tax increases at 2.9 percent. The Senate Budget Committee advanced the tax cap proposal yesterday.

Christie wants a 2.5 percent cap written into the Constitution that could be overridden only by a two-thirds majority of voters. The panel also approved four budget-related bills that raise taxes or fees after swapping out one Republican who opposed the measures for another who supported them.

Christie insists his budget does not include any new or increased taxes. Democratic Assembly Budget Committee chairman Lou Greenwald disagrees, saying, "There's at least 23 tax increases in this budget. You want to call them a loss of a benefit, you want to call them a fee increase, call them what you want. When there's money taken out of people's pockets it's a tax increase."

Among the tax increases Greenwald mentions are Christie's plan to impose $1 billion in school aid cuts and $445 million in municipal aid cuts. He says that'll lead to property tax hikes. Increasing college tuition through higher education cuts - Total cuts $171 million - tuition impact not yet known and eliminating Homestead Rebates in Calendar Year 2010; Reducing homeowner rebates in Calendar Year 2011; eliminating tenant rebates -- $848 million. These will all cost New Jerseyans.

Joe Malone the ranking Republican on the Assembly Budget Committee says, "People can talk, 'What are taxes? What are not taxes? There are no real broad-based taxes in this budget. There are specific potential fee increases and revenue enhancers just because of the catastrophic nature of this budget. I'm not going to sit here and say, 'no there isn't.'"

Malone says Democrats need to embrace this budget because it's fiscally responsible and the public is watching. He believes, "Some people's career may end because of some of the things that they do."

All is still not perfect in Trenton. The deal Christie reached with Democratic legislative leaders seemed so solid Monday night, but it is now fragile. Democrats on the Senate Budget Committee promised to give two votes in favor of the spending plan and the corresponding revenue-raising bills required to actually finalize the budget. Republicans needed all five GOP panel members to vote yes.

Yesterday, the committee was forced to re-consider bills that couldn't garner the necessary Republican support Wednesday night. They include a hospital bed tax hike, an increase in business filing fees and a tax on insurance companies.

The bills were delayed because GOP Senator Mike Doherty would not support them. He says, "I think we have to make some more progress…..I will be voting for the budget…..I don't support the tax hikes."

Doherty's vote was not an issue yesterday because he was replaced on the panel by Senate Republican Leader Tom Kean who supported the measures which were ultimately cleared out of committee leaving them poised for a vote in the full Upper House Monday.

Asked about replacing Doherty, Kean said, "This is the process that as we focus for purposes of efficiency to move the process forward and to make sure that we are in place Monday to have a vote in the full State senate….I was able to join the committee today to ensure that that process was proceeded forward for efficiency sake."

Kean says he told Doherty and the temporary replacement in a phone called. Asked if Doherty said there was a reason he couldn't be in Trenton or Kean said there was a reson Doherty couldn't be in Trenton Kean said, "We had a very positive conversation as we focused on finding solutions finding solutions.

Talking to Republicans just before the vote on the budget bill Wednesday night, budget panel chairman, Paul Sarlo said, "It's kind of anti-climactic because we still have a significant amount of taxes and fee increases to be passed by this committee…..I think we could have stayed here all night and finished tonight, unfortunately members of your caucus right now are an impediment to this process."

"I don't think that was a very, very appropriate response to me," answered Tony Bucco, the ranking Republican of the Senate budget committee. "We are trying to work with you and the committee and your side of the (political) aisle to get this thing done."

Bucco is sure everything will get resolved today, but he isn't saying if Doherty might be replaced on the committee by a Republican who will support the bills.